Sun Hung Kai Securities: Initiate coverage of Yue Xiang Holdings (01396) with a "buy" rating and a target price of HK$10.

Tai Ming Securities released a research report stating that it has given GD-HKGBA HLDGS (01396) a target price of 10 Hong Kong dollars within 12 months, corresponding to a price-earnings ratio of approximately 30 times at the end of 2026, approaching the valuation center of comparable assets. Taking into account the scarcity of assets, liquidity premium adjustments, and development elasticity, there is still a significant space for valuation reassessment. It has been given a "buy" rating and GD-HKGBA HLDGS is one of the preferred stocks in the AI sector of the bank in China. Key points of Tai Ming Securities: Core view The realization pace of AI asset end is clear, and after the structural clearance, it will enter the stage of "order-driven + profit release", which the market has not fully priced in yet. After announcing the acquisition of Tiandon Data on October 23, 2025, GD-HKGBA HLDGS completed a substantial transformation from a real estate model to a scarce asset-based AI computing power infrastructure platform. The company's series of capital moves in 2025 not only helped the company clear the real estate debt chain and compress the balance sheet but also introduced an AI smart asset with a billion-level order in hand, fast delivery capability, and technical closed-loop platform capability. The market had previously been observing its "transformation flexibility," but the bank believes that after the transaction is completed, it will quickly enter the performance realization stage, and catalysis will continue to manifest in at least three areas: order realization pace, delivery capability verification, and financial structure restructuring. The company's stock price has rebounded significantly from a bottom in 2025 But the current market pricing still mainly reflects the narrative of clearing real estate debts and injecting assets, and the reassessment of the asset quality and growth potential of Tiandon Data is still in its early stages. Currently, GD-HKGBA HLDGS's stock price is around 6.0 Hong Kong dollars, with a total market value of about 6.9 billion Hong Kong dollars; Tiandon Data's forecast net profit for 2025/2026 is about RMB 203 million / 440 million, corresponding to a forward price-earnings ratio of about 14 times in 2026, which is at a low level in the valuation center of AI infrastructure assets in the Chinese and American markets. In addition, the company announced the introduction of a strategic investment of 800 million RMB from Shenzhen Futian Capital Operation Group on January 30, 2026; and the first issuance of 108 million Hong Kong dollars after the asset injection was subscribed by a fund under China Merchants Group in December 2025, with a discount rate of less than 6%, which has begun to reflect the government's recognition of the company's value. Leading networking capabilities, fast landing pace of orders, strong rigidity in spending by large model customers, revenue growth with strong visibility Tiandon Data is one of the earliest domestic smart service providers with a card network and a delivery capability of hundreds of days, capable of meeting various needs such as large model training and low-latency reasoning; customers are concentrated in top-tier large model enterprises with strong spending rigidity in computing power, demonstrating strong continuous purchasing willingness and strength, and the total estimated future purchase demand can reach the hundred billion level, with a clear revenue release path. The bank expects that the company's in-hand billed computing service orders will exceed 15 billion RMB in 2025, corresponding to an annual income of 2 billion RMB, increasing to 4.3 billion RMB in 2026. The most pure AIDC target in the domestic market, significant scarcity Currently, most of the AI concept stocks in the Hong Kong and A-share markets are transitioning from IDC to AIDC. Compared to companies that are still in the construction period and have a lower proportion of AIDC billing, Tiandon Data has entered the mature operating stage, and is one of the few companies in the domestic market that can directly benchmark against Coreweave and other US AIDC stocks, its business attributes + customer resource endowments + leading delivery capabilities should constitute scarcity premium. After the restructuring, the asset structure has been optimized, the financial burden has been cleared, providing a foundation for valuation reassessment After the acquisition, the company's interest-bearing debt has been reduced to 420 million yuan, with a debt ratio of only 7.2%, and financial leverage has reached a historical low, making it one of the few targets in the Hong Kong stock market that combines "AI + real estate restructuring and clearance". This provides the foundation for the company's next stage of overseas expansion, platform evolution, and deepening of customer cooperation. The board of directors proposed on March 3, 2026, to rename the company "Guangdong-Hong Kong Bay Intelligent Computing Technology," with a more pure intelligent computing positioning, believing that as the company's AI performance is released, the valuation reconstruction will continue to be reflected.