Investment Rating - The report assigns a "Buy" rating for the company with a target price of 10.14 HKD, based on a current price of 5.79 HKD [1]. Core Insights - The company, Weisheng Holdings, is a leading domestic player in the metering and energy efficiency management sector, with significant growth in revenue and profit since 2022 [2]. - The company has diversified its operations through three main segments: Weisheng Group, Weisheng Information, and Weisheng Energy, which collectively drive its growth [2][4]. - The overseas business has seen a substantial increase, with revenue growing from less than 400 million RMB in 2020 to 1.599 billion RMB in 2023, reflecting a CAGR of 66% [2]. Summary by Sections 1. Leading Supplier in Smart Metering and Energy Management - Weisheng Holdings has established itself as a leader in high-end metering products in China, evolving its business model over the years to focus on smart metering solutions [12]. - The company's ownership structure is concentrated, with the founder holding 53.66% of the shares, allowing for strategic decision-making [15]. - The company has optimized its product structure, leading to rapid revenue growth, particularly in its ADO and overseas segments [18]. 2. Smart Meters: Leading Supplier in Metering - The smart meter segment continues to perform well, with a stable increase in revenue driven by both domestic and international market expansion [29]. - The company has maintained a strong position in bidding for major projects with State Grid and Southern Power Grid, indicating its competitive advantage [25][26]. - The overseas market for smart meters is expanding, with significant growth in revenue and orders, particularly in regions like Latin America and Africa [33][34]. 3. Weisheng Information: Energy IoT Unicorn - Weisheng Information is positioned as a comprehensive solution provider in the energy IoT sector, with a diverse product matrix covering various levels of the energy IoT industry [39]. - The company is focused on enhancing its profitability through continuous innovation and expansion in the energy management space [39]. 4. Financial Projections and Valuation - The company is expected to maintain high growth in its overseas business, with projected net profits of 755 million, 913 million, and 1.159 billion RMB for 2024-2026, respectively [5]. - The report anticipates a steady increase in gross margins as the share of overseas revenue grows, with a target PE of 10X for 2025 [5].
威胜控股：三架马车拉动，出海志存高远