VSTECS Holdings: Long-Term Growth Potential with Strong Supplier Network and Strategic Positioning

GF Securities noted that VSTECS Holdings (00856.HK) is a leading ICT (information and communications technology) product distributor and solution provider in the Asia-Pacific region. In recent years, the company has been actively expanding its cloud computing, big data, and AI business lines, aiming to capture growth opportunities in digital transformation and intelligent applications.
GF Securities believes VSTECS Holdings is well-positioned in the digital economy sector, supported by its comprehensive supply chain system and long-term partnerships with leading global technology vendors. The company is also leveraging its extensive distribution network and channel advantages to actively promote new business segments.

According to the report, VSTECS Holdings has maintained stable revenue growth over the past three years, with revenue rising from HK$81.03 billion in 2021 to HK$87.97 billion in 2023, reflecting a compound annual growth rate (CAGR) of 4.2%. Over the same period, net profit attributable to shareholders increased from HK$1.41 billion to HK$1.67 billion, with a CAGR of 8.9%, indicating continued improvement in profitability.

GF Securities pointed out that the company’s management team possesses extensive industry experience, demonstrating strong execution capabilities in both supply chain management and technological innovation. In the medium to long term, with the steady development of emerging technologies such as cloud computing and AI, VSTECS Holdings is expected to maintain a robust growth trajectory.

The bank forecasts VSTECS Holdings' net profit to reach HK$1.80 billion in 2024 and HK$2.00 billion in 2025, representing year-on-year growth of 7.8% and 11.1% respectively. The current valuation is approximately 6.8 times 2024 forecasted P/E and 6.1 times 2025 forecasted P/E. GF Securities maintains a “Buy” rating with a target price of HK$9.30.