Core Viewpoint - The company is positioned to benefit from the global rise of the AI industry, which is driving increased electricity demand in data centers, thus expanding its smart distribution business [1][2] Group 1: Market Opportunity - The target price for the company has been raised from HKD 11.65 to HKD 17.40, reflecting a 39.3% upside potential based on a 13.0x FY26 target P/E ratio [1] - 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 of data centers in China and the U.S. is expected to grow by about 170% and 130%, respectively, reaching approximately 420 TWh and 275 TWh by 2030, together accounting for over 70% of the global forecast [1] Group 2: Business Expansion - Data center clients are driving the expansion of the company's smart distribution business, with significant collaborations with Siemens and Global Data [2] - The company's smart distribution business is projected to have a compound annual growth rate (CAGR) of 24.7% in revenue and 26.0% in gross profit from FY24 to FY27, surpassing the overall company growth rates of 19.6% and 21.2% [2] - The contribution of smart distribution to total revenue and gross profit is expected to increase from 33.3% and 24.9% in FY24 to 37.7% and 27.9% in FY27, respectively [2]
威胜控股(3393.HK)：AI产业崛起驱动业务扩大及升级