CICC International: Initiate coverage on GBA AI COMP (01396) with a Buy rating, target price of HK$20.00.

Guotou Securities International published a research report, giving GBA AI COMP (01396) a target price of HKD 20.00, corresponding to PE ratios of approximately 57x/35x/20x for 2026E/2027E/2028E. The report initiates coverage with a "buy" rating. The bank estimates that the company's operating income will increase to RMB 4.25 billion / 7.99 billion / 13.01 billion in 2026E-2028E, with year-on-year growth rates of 323.6%, 88.2%, and 62.8% respectively. It is also estimated that the net profit for 2026E-2028E will increase to RMB 479 million / 784 million / 1.37 billion, with year-on-year growth rates of 755.2%, 63.5%, and 74.8% respectively. Key points from Guotou Securities International: - GBA AI COMP completed the acquisition of Tandun Data in October 2025, and completed a company name change in 2026, marking a shift from traditional infrastructure to AI computing technology services and high-performance server integration and delivery. The company's AI business only contributed revenue for about two months in 2025, but will reflect full-year effects for the first time in 2026. The company has built a leading domestic AI computing service capability, becoming a relatively pure AI computing target in the Hong Kong stock market, with business growth bringing higher certainty and potential for revaluation. - AI business becomes the main growth driver: GBA AI COMP is a scarce AI computing service provider in the Hong Kong stock market, transforming comprehensively into the intelligence computing field through the acquisition of Tandun Data. Thanks to the continued high industry prosperity, the company's computing power scale and orders are growing rapidly in 2026. The company has the capability to deliver large-scale models in the tens of thousands, relying on deep Shenzhen state-owned strategic empowerment to connect the entire chain of computing infrastructure, self-developed scheduling platform, and industry-custom services, serving over 200 enterprise-level customers including operators, top cloud vendors, and large model enterprises, with explosive growth in core business data. - Expansion of AI business with Tandun Data as the core: By the end of 2025, Tandun Data had delivered and operated FP16 dense computing power of over 42,000 PFLOPS, making it one of the few enterprises in China with the capability to deliver and operate tens of thousands of GPU clusters. Tandun Data has secured over RMB 15 billion worth of computing service contracts, with contract durations mainly ranging from 3-5 years, providing a high degree of certainty for future revenue growth. - Injection of confidence by Futian State-owned Assets: Through an investment in a subsidiary of Tandun Data, Futian State-owned Assets in Shenzhen injected RMB 800 million of external funds. Futian Capital has advantages in local state-owned asset platforms in policy resources, industry matchmaking, and low-cost financing, which are expected to help the company improve the efficiency of its computing projects in the Greater Bay Area, especially in Futian District of Shenzhen, and expand its customer base. - Performance growth estimation: The bank predicts that the company's future revenue growth will be mainly driven by AI computing technology services and high-performance server-related businesses. The company will continue to advance in the areas of AIDC construction and operations, diverse heterogeneous computing services, server integration, and computing resource scheduling, with AI-related businesses expected to become the main sources of revenue and profit for the company in the future. Risk alerts: Unexpected release of AI computing demand and orders; disturbances in computing asset delivery, equipment procurement, and supply chain; pressures from capital expenditure, financing costs, and depreciation and amortization; escalating industry competition and declining gross margins; underperformance of Tandun Data and risks of impairment of goodwill; continued losses in traditional business.