WASION HOLDINGS (03393) saw its shares rise more than 6% during intraday trading. At the time of writing, the stock was up 4.93%, trading at HK$26.84 with a turnover of HK$53.5484 million.
A research report from J.P. Morgan noted that WASION HOLDINGS is a major Chinese manufacturer of low-voltage electrical equipment. Its product portfolio includes electricity metering instruments, transformers, digital grid solutions, and AIDC (AI Data Center) products. Despite operating in the cyclical metering business, the company achieved a compound annual growth rate (CAGR) of over 30% in earnings from 2020 to 2024, driven by overseas expansion, new product offerings, and effective cost control.
Furthermore, the company is leveraging its relationships with several Chinese data center operators that are expanding internationally to significantly increase its business exposure to AIDC electrical equipment. The report forecasts that WASION's data center equipment revenue will grow approximately threefold during the 2025-2028 forecast period. Combined with the overseas expansion of its other low-voltage electrical equipment businesses, this could translate into a high double-digit earnings CAGR for the 2026-2028 forecast period, compared to a forward price-to-earnings ratio of about 16 times for the coming year.
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