WASION HOLDINGS (03393) rose more than 8% in the afternoon session. At the time of writing, the stock was up 7.95% to HK$26.06, with a turnover of HK$227 million. The company recently announced that it has secured contracts worth approximately RMB 383 million in total from the State Grid's centralized bidding activities within 2026. Analysis from J.P. Morgan noted that Wasion Holdings anticipates the State Grid's tender activities will provide considerable upside for order volume and average selling prices in the smart meter segment. Concurrently, overseas expansion and the AIDC product line are expected to become the next drivers of profitability. Citigroup initiated a 90-day positive catalyst watch on Wasion Holdings late last month. The primary reasons cited include expectations for robust profit growth from the distribution grid business and overseas smart meter sales from 2026 to 2027. Wasion possesses in-house manufacturing capability for meter relays, a key component whose price has surged 2 to 4 times already in 2026. This capability is seen as helping to mitigate potential profit pressure in the grid smart meter business. The bank also views the current valuation as attractive.
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