Citi initiates a 90-day positive catalyst observation on WASION HOLDINGS, expecting rapid growth in overseas orders next year

AASTOCKS
2025.11.26 07:50

Citi's research report indicates that WASION HOLDINGS (03393.HK) has guided that, driven by strong demand for Artificial Intelligence Data Centers (AIDC), its overseas customer new order amount will increase by 54% annually to RMB 2 billion by 2026. Citi expects that the revenue share from WASION's data centers will rise from 9% in 2024 to 16% and 20% in 2025 and 2026, respectively.

Given the higher profit contribution from the AIDC business, Citi has raised its net profit forecasts for WASION for 2025 to 2027 by 11% to 17%; it has assigned a "Buy" rating to the stock, with a target price increased from HKD 11 to HKD 15.5.

Citi has initiated a 90-day positive catalyst observation for WASION, expecting that its profitability in the distribution equipment business related to artificial intelligence data centers has room for improvement; it also anticipates that WASION's overseas revenue from data center business will double from RMB 200 million in 2024 to RMB 500 million in 2025, reaching RMB 1 billion in 2026

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