WASION HOLDINGS (03393) rose 7.31% in early trading, reaching HK$14.39 with a turnover of HK$24.23 million.
A recent research report by CSCI highlighted that as the global AI industry expands, the growing power demand from data centers is driving the company's smart power distribution business. WASION HOLDINGS has shifted its focus from traditional industries to advanced technology, creating revaluation opportunities and breaking through the valuation constraints of Hong Kong's industrial sector.
The report noted that starting from FY24, data center clients have fueled the expansion of the company's smart power distribution segment. The newly operational factory in Johor Bahru, Malaysia, is expected to further boost WASION HOLDINGS' overseas smart power distribution business. During the factory's opening ceremony, the company signed a strategic cooperation agreement with DayOne to deepen collaboration in the data center sector.
Based on updated financial data, CSCI made minor technical adjustments to its earnings forecast and raised the target price from HK$11.65 to HK$17.40, implying a 13.0x FY26 target P/E ratio and 39.3% upside potential. The firm reiterated its "Buy" rating.
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