Summary of Weishi Jiajie Conference Call Company Overview - Weishi Jiajie operates in the ICT industry, focusing on distribution for foreign brands entering the Chinese market and domestic brands expanding overseas. The company was established in 1991 and is headquartered in Beijing, listed on the Hong Kong Stock Exchange since 2002 with a compound annual growth rate (CAGR) of 24% since then [2][3][5]. Financial Performance - In 2024, Weishi Jiajie's revenue reached HKD 89 billion, a year-on-year increase of 21%, with net profit at HKD 1.05 billion, up 14%. The return on equity (ROE) has been maintained above 10% for 23 consecutive years [2][5]. - For Q1 2025, revenue grew by 16%, gross profit increased by 20%, and net profit rose by 28% [2][5]. - The company has a cash reserve of approximately HKD 3.9 billion and total liabilities around 70%, indicating strong capital management [2][6]. Market Dynamics - Weishi Jiajie has a significant presence in Southeast Asia, with a market growth rate of 74% compared to 4% in China. The Southeast Asian market contributes over 50% to the company's profits [2][3][12]. - The company is the largest distributor for brands like iFLYTEK, Huawei, and Lenovo in Southeast Asia, with overseas sales accounting for about 24-25% of total sales [2][4]. Strategic Initiatives - The company is expanding its cloud services and computing power business, having acquired Cloud Star Data, which contributed 4% to total revenue in 2024, with expectations of 60-70% growth in 2025 [2][4]. - Weishi Jiajie is considering entering the automotive distribution sector, particularly electric vehicles, leveraging its existing distribution network in Southeast Asia [3][13][14]. Competitive Landscape - The company faces competition from firms like Digital China, Ingram Micro, and Tech Data. However, its established relationships and experience in channel management provide a competitive edge [3][19][20]. - The gross margin in Southeast Asia is slightly higher due to favorable distributor conditions, with profits from this region expected to exceed 50% in 2025 [11][12]. Future Outlook - Weishi Jiajie anticipates a revenue growth of 20% and profit growth of 30% over the next three years, with a projected net profit of HKD 1.25 billion in 2025 [3][16]. - The company is also exploring opportunities in Vietnam and plans to maintain its focus on the Southeast Asian market, which is expected to grow significantly due to low penetration rates and increasing demand for ICT solutions [9][21]. Investment Appeal - The company's valuation is considered low, with a price-to-earnings (PE) ratio of approximately 8-9 times and a dividend payout ratio of 30-40%, making it attractive to investors seeking defensive yet growth-oriented opportunities [3][10].

Group 1: Company Overview - Company is a leading technology product solutions and IT service platform in the Asia-Pacific region, positioned as an IT distributor connecting upstream brand manufacturers with downstream channel partners [1] - The company has established deep partnerships with over 300 Fortune 500 brands and covers more than 50,000 sales channels, showcasing its significant competitive advantage [1] Group 2: Market Growth and Opportunities - The Southeast Asian market is experiencing explosive growth driven by increasing digital demand, cloud service expansion, and AI technologies, with the company actively expanding its distribution channels in eight Southeast Asian countries [2] - The company's revenue and profit from Southeast Asia have reached new highs over the past six years, with profits exceeding 500 million HKD and a continuous increase in revenue contribution from this region [2] Group 3: Financial Performance and Projections - The company is expected to achieve revenues of 99.65 billion HKD, 111.09 billion HKD, and 122.96 billion HKD in 2025, 2026, and 2027 respectively, with net profits projected to reach 1.16 billion HKD, 1.3 billion HKD, and 1.5 billion HKD in the same years [3] - The target price is set at 9.16 HKD, representing a potential upside of 46.6% from the current price, with corresponding price-to-earnings ratios of 11.4x and 10.1x for 2025 and 2026 [3] Group 4: Competitive Positioning - The company has established deep collaborations with leading cloud service providers such as Alibaba Cloud, Huawei Cloud, and AWS, positioning itself to benefit from the rapid growth of the cloud computing industry [2] - Despite being smaller in overall revenue compared to peers like Digital China, the company has surpassed them in net profit, indicating strong profitability [2]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全 部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 於二零二五年五月二十二日 舉行之股東週年大會投票表決結果 董事會欣然宣佈，於二零二五年五月二十二日舉行之股東週年大會上提呈之 所有決議案已獲以按股數投票表決方式正式通過為普通決議案。 股東週年大會投票表決結果 偉仕佳杰控股有限公司（「本公司」）之董事會（「董事會」）欣然宣佈，於 二零二五年五月二十二日舉行之本公司股東週年大會（「股東週年大會」） 上，就二零二五年四月二十三日股東週年大會通告所載列的所有提呈決議案已 獲以按股數投票表決方式正式通過為普通決議案。投票表決結果如下： | | 普通決議案 | 票數 (%) | | | --- | --- | --- | --- | | | | 贊成 | 反對 | | 1. | 省覽及考慮本公司及其附屬公司截至二 | | | | | 零二四年十二月三十一日止年度之經審 | 868,418,656 | 3,566,000 | | | 核綜合財務報表、本公司之董事會報 ...

Core Viewpoint - The company, 伟仕佳杰, has released its first business update for Q1 2025, showing strong year-on-year growth in revenue, gross profit, and net profit, reflecting its commitment to transparency and shareholder value [1] Financial Performance - For Q1 2025, the company reported an unaudited total revenue growth of 16-17% year-on-year [1] - Gross profit increased by 20-21% year-on-year [1] - Net profit attributable to shareholders grew by 28-29% year-on-year, aligning with the company's guidance for future growth [1] Future Outlook - The management has indicated a revenue growth target of 15-20% over the next three years, primarily driven by high-margin businesses [1] - The company’s revenue for the first half of 2025 is projected to reach HKD 46.5 billion, reflecting a year-on-year growth of 16.0% [1] - Gross profit is expected to be HKD 2.065 billion, with a year-on-year increase of 16.3% [1] - Net profit is anticipated to be HKD 627 million, representing a year-on-year growth of 30.3% [1] Investment Rating - The company maintains a "Buy" rating with a target price of HKD 8.18 [1]

Core Viewpoint - VSTECS has released its first business update for Q1 2025, showcasing significant year-over-year growth in revenue, gross margin, and net profit, reflecting the company's commitment to transparency and shareholder value [1][2] Financial Performance - In Q1 2025, total revenue increased by 16-17% YoY, gross profit rose by 20-21% YoY, and net profit attributable to shareholders surged by 28-29%, aligning with previous forecasts for 1H2025 [2] - The company anticipates a revenue growth rate of 15-20% over the next three years, primarily driven by higher margin business segments [1] - Forecasts for 1H2025 include revenue of HK$46.5 billion (16.0% YoY increase), gross profit of HK$2,065 million (16.3% YoY increase), and net profit of HK$627 million (30.3% YoY increase) [2] Strategic Insights - The release of quarterly financial data is a strategic move to enhance transparency and reduce perceived risk, which may improve the company's valuation [1] - The increase in gross profit is attributed to a rise in gross margin following the discontinuation of low-margin business in the Southeast Asian region [2]

Group 1 - The company reported Q1 2025 performance exceeding expectations, with revenue growth of 16-17% year-on-year, gross profit growth of 20-21%, and net profit attributable to shareholders increasing by 28-29% [1] - The increase in market share for domestic brands is expected to continue, driven by AI demand and the optimization of distribution business structure, with leading companies like Huawei and Haiguang maintaining high growth rates [1] - The demand for AI computing power is driving the release of network and storage products, supported by the "national subsidy" policy since Q4 2024, which has led to early procurement in Q1 [1] Group 2 - The company has established a broad product ecosystem through deepening partnerships with global brands such as Huawei, Alibaba, Tencent, and others, enhancing its coverage in the core IT product distribution market [2] - The diverse product portfolio helps improve customer stickiness and supports stable revenue sources across different economic cycles, contributing to the company's risk resilience [2] - The company is a leading technology service platform in the Asia-Pacific region, benefiting from the AI wave and digital transformation, with adjusted net profit forecasts for 2025, 2026, and 2027 showing growth of 12.0%, 11.6%, and 8.7% respectively [2]

Investment Rating - The report maintains a "Buy" rating for VSTECS with a target price of HKD 8.18 [3] Core Insights - VSTECS has shown strong financial performance in Q1 2025, with total revenue growth of 16-17% year-on-year, gross profit growth of 20-21%, and net profit growth of 28-29%, aligning with management's guidance for a revenue growth rate of 15-20% over the next three years [3] - The company has demonstrated a commitment to transparency and shareholder engagement by voluntarily updating its quarterly financial data [3] - The strong performance is attributed to the termination of low-margin operations in Southeast Asia, which has positively impacted overall profit margins [3] Financial Performance Summary - **Consumer Electronics Segment**: - Revenue: HKD 16,804 million (up 5.1% year-on-year) - Operating Profit Margin: 1.70% [2] - **Enterprise Systems Segment**: - Revenue: HKD 27,283 million (up 21.1% year-on-year) - Operating Profit Margin: 2.02% [2] - **Cloud Computing Segment**: - Revenue: HKD 2,420 million (up 55.1% year-on-year) - Operating Profit Margin: 3.95% [2] - **Total Revenue**: - Expected to reach HKD 46,508 million in H1 2025 (up 16.0% year-on-year) - Gross Profit: HKD 2,065 million (up 16.3% year-on-year) - Net Profit: HKD 591 million (up 30.3% year-on-year) [2][3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company reported 1Q25 performance that exceeded expectations, with revenue growth of 16-17% year-on-year, gross profit growth of 20-21%, and net profit attributable to shareholders growing by 28-29%. This is primarily attributed to the optimization of the distribution business structure and the continuous increase in market share of domestic brands [5][6] - The domestic market is expected to benefit from the recovery of distribution losses and the demand driven by AI, which may lead to profit elasticity release. The Southeast Asian market continues to show high gross margins and growth rates, with gross margins expected to remain relatively stable [6][7] - The company is committed to broadening its product portfolio to meet the increasingly diverse needs of customers, enhancing overall market competitiveness. By deepening partnerships with globally recognized brands, the company has successfully built a comprehensive product ecosystem covering enterprise systems, consumer electronics, and cloud computing [7] Financial Summary - The company is projected to achieve net profits of HKD 11.78 billion, HKD 13.15 billion, and HKD 14.29 billion for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 12.0%, 11.6%, and 8.7% [5][8] - The estimated revenue for 2025 is HKD 96.42 billion, with a year-on-year growth rate of 8.2%. The company’s PE ratio for 2025 is projected to be 8X [8][9] - The company’s return on equity (ROE) is expected to increase from 12.2% in 2024 to 14.0% in 2027, indicating improved profitability [8][9]

自願公告 二零二五年第一季度最新業務情況 香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確性或完整性 亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部分內容而產生或因倚賴該等內容而引致的 任何損失承擔任何責任。 二零二五年第一季度本集團財務表現 二零二五年第一季度營業額(未經審核) ，較二零二四年第一季度同比增長 16-17%。二零二五年第一季度毛利(未經審核)，較二零二四年第一季度同 比增長 20-21%。二零二五年第一季度歸屬股東純利(未經審核) ，較二零二 四年第一季度同比增長 28-29%。 本公告乃根據董事會初步審閱本集團之相關管理賬目及董事會現時可獲資 料後作出，並非以本集團核數師審核或審閱後的數據和資料為基礎。本公 告內的資料亦可能會修改或調整。本公司之股東和潛在投資者買賣本公司 證券時務請審慎行事。 承董事會命 偉仕佳杰控股有限公司 公司秘書 林從帥 香港，二零二五年五月十四日 於本公佈日期，董事會由執行董事李佳林先生、王偉炘先生、李玥先生、陳海洲先生及顧三軍 先生；非執行董事張冬杰先生；以及獨立非執行董事李煒先生、高懿洋女士及余定恒先生組 成。 本公告由 ...

Group 1 - Cloud computing stocks have collectively risen, with notable increases in companies such as Inspur Digital Enterprise (+3.76%), China Software International (+3.53%), and Tencent Holdings (+2.18%) [1] - North American cloud service providers (CSPs) reported earnings that exceeded market expectations, with Microsoft, Meta, and Amazon highlighting the significant role of AI in their revenue growth [1] - Despite concerns over tariff policies affecting the macro outlook, the demand for AI remains unchanged, contributing to a positive cycle of capital expenditure expansion, commercialization, and performance realization [1] Group 2 - Domestic demand for computing power is expected to be boosted by accelerated local infrastructure development amid global geopolitical and trade uncertainties [2] - The cloud computing market is undergoing an irreversible trend as IT workloads shift to the cloud, with artificial intelligence identified as a key driver for renewed growth [2] - The development of large language models (LLM) and generative AI (GenAI) is still in its early stages, which will play a crucial role in accelerating growth for global and Chinese CSPs [2]