Summary of Weisheng Holdings Conference Call Company Overview - **Company**: Weisheng Holdings - **Industry**: Smart grid, data center, and energy storage solutions Key Points Order and Revenue Forecast - Weisheng Holdings expects to add 400 million in new orders in Q1 2026, bringing total orders to 1.6 billion [2][5] - Non-grid customers include major companies like ByteDance, Baidu, and Alibaba, with a significant contract of 260 million from ByteDance [2][5] - The data center segment is the fastest-growing, with total orders expected to reach 2.3 billion in 2025, including 1.3 billion from a partnership with GDS and 600 million from overseas [2][5] Data Center Business - Data center revenue is projected to double to 1 billion in 2025, with expectations of 30-35 contracts in 2026 [2][7] - The company has secured a data center order of 600 to 700 megawatts in Malaysia, with a delivery cycle of approximately 45 days starting in 2026 [9] - Major partners in the data center business include GDS and its subsidiary Day One, with significant contracts signed in Thailand and other regions [8][10] ADO Business Insights - ADO business revenue for the first half of 2025 is 1.2 billion, with contributions from data centers (400 million), smart grid distribution (570 million), and energy storage solutions (200 million) [6] - The gross margins for energy storage are around 20%, smart grid distribution is 25-26%, and data centers exceed 26% [6] Market Expansion and Strategy - Weisheng Holdings is expanding its overseas market presence, particularly in Mexico and Brazil, where it has achieved significant revenue from distribution [2][5][17] - The company plans to expand into Europe and Turkey, focusing on distribution, data centers, and energy storage [2][5] Competitive Landscape - The company maintains a strong competitive position due to localized production and a comprehensive service model, which includes market development and after-sales service [14][21] - The gross margin for overseas orders is expected to be higher than domestic due to less competition in certain regions [14] Future Outlook - The company anticipates maintaining over 20% growth in overseas markets, driven by diverse business segments including smart meters, energy storage, and smart city solutions [31] - Management believes the current valuation is underestimated and sees potential for significant growth as the company transitions towards TMT industry valuations [36] Regulatory and Market Trends - The Mexican market is crucial, contributing 57% of revenue in 2024, with a 30% year-on-year increase in orders for smart meters [17][19] - New standards for smart meters are expected to increase prices by 20-40%, which may positively impact gross margins [24][20] Conclusion - Weisheng Holdings is positioned for robust growth in the smart grid and data center sectors, with strategic partnerships and a focus on international expansion. The company is optimistic about future revenue and profit growth, supported by strong demand in both domestic and international markets.

Group 1 - The core viewpoint of the report is that Weisheng Holdings (03393) has seen a stock price increase of 124.5% since the initial coverage, and there is still significant upside potential, with target price raised from HKD 17.40 to HKD 21.75, reflecting a 30.4% upside [1] - The company is expected to see substantial growth in new orders from AIDC clients, with FY25 new orders projected at approximately RMB 2.3 billion, and FY26 new orders expected to reach around RMB 3.6 billion, a year-on-year increase of 56.5% [1] - The company is expanding its development foundation from traditional industrial sectors to advanced technology sectors, supporting a higher valuation [1] Group 2 - The smart distribution business is anticipated to maintain high growth, with a compound annual growth rate (CAGR) of 25.4% for revenue and 27.9% for gross profit from FY24 to FY27, surpassing the overall company growth rates of 19.8% and 21.8% respectively [2] - The proportion of smart distribution revenue and gross profit is expected to increase from 33.3% and 24.9% in FY24 to 38.1% and 27.6% in FY27 [2]

Core Viewpoint - The stock price of Weisheng Holdings (03393) has increased by 124.5% since the initial coverage, with significant upward potential remaining. The target price has been raised from HKD 17.40 to HKD 21.75, reflecting a 30.4% upside based on a 16.0x FY26 target P/E ratio. The company is expected to be included in the Hong Kong Stock Connect in the first quarter of next year, which will better reflect its valuation [1]. Group 1 - The demand for intelligent power distribution services from AIDC clients is expected to exceed expectations, with new orders projected to reach approximately RMB 23 billion for FY25, including RMB 10 billion to be delivered this year. For FY26, new orders from AIDC clients are anticipated to be around RMB 36 billion, representing a year-on-year increase of 56.5% [2]. - The company is collaborating with major AIDC clients like GDS Holdings (09698) and is likely to sign new large clients, particularly in Southeast Asia's data center sector [2]. Group 2 - The intelligent power distribution business is expected to maintain high growth, with a projected compound annual growth rate (CAGR) of 25.4% for revenue and 27.9% for gross profit from FY24 to FY27. This growth rate is higher than the overall company revenue and gross profit growth rates of 19.8% and 21.8%, respectively. The proportion of total revenue and gross profit from this segment is expected to increase from 33.3% and 24.9% in FY24 to 38.1% and 27.6% in FY27 [3].

Investment Rating - The report maintains a "Buy" rating for the company with an updated target price of HKD 21.75, reflecting a potential upside of 30.4% from the current price of HKD 16.68 [1][5]. Core Insights - The demand for the company's smart distribution services from AIDC (Artificial Intelligence Data Center) clients is expected to exceed expectations, leading to significant growth in new orders for FY26 [1][2]. - The company has expanded its development foundation from traditional industrial sectors to advanced technology sectors, supporting a higher valuation [1]. - The report projects a compound annual growth rate (CAGR) of 25.4% for smart distribution revenue and 27.9% for gross profit from FY24 to FY27, which is higher than the overall company growth rates [3]. Financial Projections - Revenue is forecasted to grow from RMB 7,252 million in 2023 to RMB 15,004 million in 2027, with a CAGR of 19.8% [4][10]. - Shareholder net profit is expected to increase from RMB 521 million in 2023 to RMB 1,583 million in 2027, reflecting a CAGR of 31.9% [4][10]. - The earnings per share (EPS) is projected to rise from RMB 0.53 in 2023 to RMB 1.59 in 2027 [4][10]. Order Growth Expectations - New orders from AIDC clients are anticipated to reach approximately RMB 23 billion in FY26, representing a year-on-year increase of about 130% [2]. - The report conservatively estimates that FY26 deliveries to AIDC clients could amount to RMB 23 billion, driven by both existing and new large clients, particularly in Southeast Asia [2]. Business Segment Performance - The smart distribution business is expected to maintain high growth, with its revenue share of total income projected to increase from 33.3% in FY24 to 38.1% in FY27 [3]. - The gross margin for AIDC orders is expected to be higher than that of other smart distribution orders, contributing to overall profitability [3].

Group 1 - The core viewpoint of the article is that Citigroup has raised its profit forecasts for Weisheng Holdings (03393) for the years 2025 to 2027 by 1% to 5% due to strong new orders related to AI Data Centers (AIDC) and higher profit predictions [1] - Citigroup has increased the target price for Weisheng Holdings from HKD 15.5 to HKD 21 and maintains a "Buy" rating, indicating a high likelihood of the stock being included in the Stock Connect mechanism by March next year [1] - The company expects its AIDC revenue to grow from RMB 1 billion in 2025 to RMB 2 billion in 2026, and further to RMB 4 billion in 2027 [1] Group 2 - The company anticipates that new AIDC orders will increase by 50% year-on-year locally and by 92.3% overseas next year, reaching RMB 1.5 billion and RMB 2.5 billion respectively [1]

Group 1 - The core viewpoint of the article is that Citigroup has raised its profit forecasts for Weisheng Holdings (03393) for the years 2025 to 2027 by 1% to 5%, and increased the target price from HKD 15.5 to HKD 21, maintaining a "Buy" rating [1] - Citigroup believes that the stock is likely to be included in the connectivity mechanism by March next year, following a positive catalyst observation initiated on November 25 [1] - The company expects its Artificial Intelligence Data Center (AIDC) revenue to grow from RMB 1 billion in 2025 to RMB 2 billion in 2026, and further to RMB 4 billion in 2027 [1] Group 2 - The company anticipates that new AIDC orders will increase by 50% year-on-year locally and by 92.3% overseas next year, reaching RMB 1.5 billion and RMB 2.5 billion respectively [1]

Core Viewpoint - Citi's research report indicates that the revenue from the Artificial Intelligence Data Center (AIDC) of the company is expected to increase from 1 billion in 2025 to 2 billion in 2026, and further to 4 billion in 2027 [1] Group 1: Revenue Growth Projections - The company anticipates that new AIDC orders locally and overseas will grow by 50% and 92.3% year-on-year, reaching 1.5 billion and 2.5 billion respectively next year [1] - The strong demand for new AIDC orders and higher profit forecasts have led Citi to raise its net profit estimates for 2025 to 2027 by 1% to 5% [1] Group 2: Target Price and Rating - Based on the revised forecasts, Citi has increased the target price from 15.5 HKD to 21 HKD and maintains a "Buy" rating on the stock [1] - The company is likely to be included in the connectivity mechanism by March next year, according to Citi's positive outlook [1]

每经AI快讯，威胜控股(03393.HK)涨超8%，截至发稿，涨8.47%，报16.4港元，成交额4388.07万港元。 （文章来源：每日经济新闻） ...

Group 1 - The core viewpoint of the article highlights the significant rise in the stock price of Weisheng Holdings (03393), which increased by 8.47% to HKD 16.4, with a trading volume of HKD 43.88 million [1] - Nvidia is planning a private summit next week, inviting startups focused on addressing power issues in data centers, which could hinder the development of artificial intelligence [1] - According to a report from Zhongtai International, as the AI industry rises globally, the demand for electricity in data centers is increasing, which is expected to expand the company's smart distribution business [1] Group 2 - Citigroup's report indicates that due to strong demand from Artificial Intelligence Data Centers (AIDC), Weisheng Holdings' overseas new order amount is projected to increase by 54% to RMB 2 billion by 2026 [1] - It is anticipated that the revenue contribution from Weisheng's data center business will rise from 9% in 2024 to 16% in 2025 and 20% in 2026 [1] - Given the higher profit contribution from the AIDC business, Citigroup has raised its net profit forecasts for Weisheng for 2025 to 2027 by 11% to 17% [1]

Group 1 - The 20th "EY Entrepreneur Of The Year" awards were announced in Hong Kong, recognizing 12 entrepreneurs from mainland China, Hong Kong, and Macau, primarily in technology, life sciences, and advanced manufacturing sectors [1] - Notable winners include leaders from companies such as Weisheng Information, Yuntian Lifeng, Dongxin Co., Microchip Biotech, LEO Group, and Shengbang Technology, with Weisheng Information's chairwoman Li Hong being the only female recipient this year [1] - The theme of this year's awards is "Twenty Years of Unwavering Commitment, Building Dreams in the New Era," emphasizing achievements in technological innovation, industrial upgrading, and globalization [1] Group 2 - Li Hong, chairwoman of Weisheng Information, has over 20 years of experience in energy measurement and efficiency management, leading the company to significant achievements in energy IoT and digital transformation [2] - The EY Entrepreneur Of The Year award has been a vital platform connecting Chinese and global entrepreneurs since its introduction in China in 2006, highlighting the transformation of the Chinese economy from a "follower" to a "leader" [2] - The awards underscore the critical role of private enterprises in driving high-quality development and global cooperation, showcasing the strong momentum of technology companies in leading industrial transformation [2]