WASION HOLDINGS Surges Over 4% on Citigroup's Bullish Outlook for Power Distribution and Overseas Smart Meter Sales

Stock News05-14 15:22

WASION HOLDINGS (03393) rose more than 4%. As of the time of writing, the stock was up 4.47% to HK$27.6, with a turnover of HK$325 million.

The company recently announced that it has secured contracts worth approximately RMB 383 million in total from the State Grid's centralized bidding process within 2026.

Citigroup previously initiated a 90-day positive catalyst watch on WASION HOLDINGS. The bank's optimism is based on three key factors. First, it anticipates strong profit growth from the power distribution business and overseas smart meter sales from 2026 to 2027. Second, WASION possesses in-house manufacturing capabilities for meter relays, a critical component whose price has surged 2 to 4 times in 2026. This vertical integration is expected to help mitigate potential profit pressures in the grid smart meter business. Third, the current valuation is considered attractive, with the stock trading at a forecasted 2026 P/E ratio of 16.4x, a P/B ratio of 3.2x, and offering a dividend yield of 2.4%.

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