Core Viewpoint - Wasion Holdings has secured three overseas contracts in 2023, enhancing its international presence and brand recognition in the smart meter market [1][2] Group 1: Contract Details - Wasion Mexico signed a smart meter supply agreement with the Mexican Federal Electricity Commission (CFE) valued at over 238 million RMB, contributing to a total of approximately 791 million RMB in contracts won in Mexico by 2025 [1] - Wasion Tanzania won a smart meter contract worth about 61 million RMB from the Tanzania Electric Supply Company (Tanesco) [1] - The total value of the three contracts amounts to over 852 million RMB, indicating significant growth in overseas markets [2] Group 2: Market Position and Strategy - CFE is the dominant player in Mexico's electricity sector, serving around 50 million users, while Tanesco is the sole state-owned power company in Tanzania, serving approximately 15 million users [2] - Wasion Holdings aims to establish Tanzania as its business hub in East Africa, with plans to expand into Uganda, Kenya, and Mozambique [1][2] - The company is focused on maintaining a stable order flow for smart meters in Africa and is also exploring new projects in energy storage [2] Group 3: Company Overview - Wasion Holdings is a leading domestic energy measurement and efficiency management enterprise, offering solutions in smart metering, communication, and fluid measurement [1] - The company has a significant market share in China and exports its products to various regions, including Asia, Africa, and Europe [1]

Market Overview - On July 16, the Hang Seng Index fell by 72 points or 0.3%, closing at 24,517 points, while the Hang Seng Tech Index decreased by 0.2% to 5,418 points[1] - The total market turnover reached HKD 259 billion, indicating active trading, with a net inflow of HKD 1.6 billion through the Hong Kong Stock Connect[1] Sector Performance - Funds are shifting towards previously lagging sectors such as technology, robotics, software, telecommunications, and food and beverage[1] - Pharmaceutical stocks like Lijun Pharmaceutical (1513 HK), Fosun Pharma (2196 HK), and Weigao Group (1066 HK) saw gains between 5.6% and 13.1%[1] - High-end manufacturing stocks such as Sanhua Intelligent Control (2050 HK) surged by 8.4%, while related AI and robotics manufacturing stocks rose by 3.9% to 6.4%[1] Global Financial Trends - The US dollar index and the 10-year US Treasury yield have been gradually rising since July, potentially impacting liquidity in the Hong Kong market[2] - The forecasted PE ratio for the Hang Seng Tech Index is 15.6 times, close to historical lows, with its valuation relative to the NASDAQ 100 at the 23.3% percentile over the past three years[2] Company Highlights - Pop Mart (9992 HK) expects a revenue increase of no less than 200% and a net profit growth of at least 350% for the first half of the year, but its stock fell by 4.0% post-announcement due to profit-taking[3] - 361 Degrees (1361 HK) anticipates double-digit revenue growth for the first half of the year, with a year-to-date increase of 19.1%[3] Healthcare Sector Developments - The Hang Seng Healthcare Index rose by 0.8%, with China Biologic Products (1177 HK) announcing a USD 500 million acquisition of a new drug company, which is expected to drive revenue growth[4] - Green Leaf Pharmaceutical (2186 HK) shares increased by 9.4%, driven by expectations of overseas licensing agreements[4] Renewable Energy and Utilities - The renewable energy and utilities sector saw a general decline, except for Winsun Holdings (3393 HK), which rose by 3.6% and has increased by 28.7% since coverage began in June[5]

Core Viewpoint - Wasion Holdings has secured three overseas contracts in 2023, enhancing its international presence and brand recognition in the smart meter market [2][3] Group 1: Contract Details - Wasion Mexico signed a smart meter supply agreement with the Mexican Federal Electricity Commission (CFE) valued at over 238 million RMB, contributing to a total of approximately 791 million RMB in contracts won in Mexico for 2025 [2] - Wasion Tanzania won a smart meter contract worth about 61 million RMB from Tanzania Electric Supply Company (Tanesco), marking Tanzania as a key business hub in East Africa [2][3] - The total value of the three contracts amounts to over 852 million RMB, indicating significant growth in overseas markets [3] Group 2: Company Background and Market Position - Wasion Holdings is a leading domestic energy measurement and efficiency management company, offering three core business areas: electric smart metering solutions (AMI), communication and fluid metering solutions, and smart power distribution systems [2] - The company serves a diverse client base, including utility companies and large industrial clients, with a strong market share in China and exports to various regions including Asia, Africa, and Europe [2] Group 3: Future Outlook - The company aims to continue securing stable smart meter procurement orders in Africa while actively exploring new projects such as energy storage [3] - Wasion Holdings has established R&D centers and production facilities in both Mexico and Tanzania, with plans to expand into surrounding markets to enhance local competitiveness [3]

Investment Rating - The report suggests to pay attention to the company due to its increasing influence in overseas markets and the growing demand for smart metering products driven by the replacement cycle [4]. Core Viewpoints - The company, Kaifa Technology, is a leader in smart energy metering, focusing on intelligent and digital energy management solutions, with a strong presence in overseas markets [1][8]. - The global smart metering market is expected to reach USD 36.39 billion by 2028, with a compound annual growth rate (CAGR) of 9.5%, indicating significant growth potential for the company [2]. - The company has a strong market position in Europe, with its market share increasing from 9.46% in 2021 to 12.14% in 2023 [3]. Company Overview - Kaifa Technology specializes in smart metering solutions, including smart electricity, water, and gas meters, as well as AMI system software [1][8]. - The company was established in 2016 and has a history of over 20 years in the smart metering industry, having participated in significant projects in Europe [9]. - The company’s revenue is primarily derived from overseas sales, with 92.15% of its revenue coming from international markets in the first half of 2024 [32]. Financial Performance - The company forecasts revenue and net profit for 2024 to be approximately CNY 29.33 billion (+15.02%) and CNY 5.88 billion (+20.64%), respectively [1]. - In the first half of 2024, the company achieved revenue of CNY 12.98 billion, with a gross margin of 37.35% [39]. - The company’s main products, smart meters and their core units, accounted for 98.52% of its revenue in the first half of 2024 [39]. Market Dynamics - The global trend towards building smart energy systems and new power systems is driving demand for smart metering infrastructure [2]. - The company is well-positioned to benefit from the ongoing replacement cycle of smart meters, particularly in regions where demand is strong [2][3]. - The company plans to invest CNY 1.017 billion in projects that are expected to enhance its performance [3]. Competitive Positioning - The company’s P/E ratio for 2024 is estimated at 14.27X, compared to the industry average of 18.22X for 2023, indicating potential undervaluation [4]. - The company has established stable relationships with major power companies and contractors, which supports its revenue stability [28].