Core Insights - The rise of the AI industry is significantly increasing the electricity demand of data centers, which is expanding the company's smart distribution business [1] - The company has adjusted its earnings forecast based on the latest report data, raising the target price from HKD 11.65 to HKD 17.40, reflecting a 39.3% upside potential [1] Group 1: Data Center Electricity Demand - The International Energy Agency (IEA) projects that global electricity consumption by data centers will increase by approximately 127.7% from an estimated 415 TWh in 2024 to a forecasted 945 TWh by 2030 [1] - The electricity consumption in data centers in China and the U.S. is expected to grow by about 170% and 130%, reaching approximately 420 TWh and 275 TWh respectively, accounting for over 70% of the global forecast by 2030 [1] Group 2: Smart Distribution Business Expansion - Data center clients are driving the expansion of the company's smart distribution business, with significant growth observed in partnerships, such as with Siemens and DayOne [2] - DayOne's electricity consumption in Q2 2025 was 213 MW, representing a year-on-year increase of 110.9% and a quarter-on-quarter increase of 49.0% [2] Group 3: Growth Projections for Smart Distribution - The company anticipates a compound annual growth rate (CAGR) of 24.7% for smart distribution revenue and 26.0% for gross profit from FY24 to FY27, surpassing the overall company growth rates of 19.6% and 21.2% respectively [3] - The proportion of smart distribution in total revenue and gross profit is expected to rise from 33.3% and 24.9% in FY24 to 37.7% and 27.9% in FY27 [3]