HK Stock Market Move | WASION HOLDINGS (03393) up more than 6%, the company is currently significantly increasing its exposure to AIDC electrical equipment business.

WASION HOLDINGS (03393) rose more than 6%, rising 6.41% to HK$27.22 at the time of publication, with a turnover of HK$249.8 million. JP Morgan released a research report stating that WASION HOLDINGS is a leading low-voltage electrical equipment manufacturer in China, with products including electric energy metering instruments, transformers, digital grid solutions, and AIDC (AI data center) products. Despite being in a cyclical metering business, the company is expected to achieve a compound annual growth rate of over 30% in profits from 2020 to 2024, due to overseas expansion, new product supply, and good cost control. Additionally, the company has significantly increased its exposure to AIDC electrical equipment business by leveraging its relationships with several Chinese data center operators expanding overseas. The bank predicts that Weisheng's data center equipment revenue will triple during the forecast period from 2025 to 2028. Along with the overseas expansion of other low-voltage electrical equipment businesses, this could a high double-digit compound annual growth rate in profits for the forecast period of 2026 to 2028, with a future PE ratio of around 16 times.