20250822-招银国际-伟仕佳杰-00856.HK-1H25_result_review_strong_cloud_computing_revenue_growth_on_robust_AI_demand_5页_987kb

Company Update and Financial Results

VSTECS (856 HK) reported strong first-half 2025 results, with total revenue increasing by 14% year-over-year to HK$45.5 billion, and net profits jumping 36% YoY to HK$649 million. This growth is attributed to robust demand for cloud computing, particularly in AI-related areas, as China's market for AI computing power expands. Revenue from the cloud computing segment surged 68% YoY to HK$2.6 billion, driven by collaborations with leading hyperscalers like Alibaba Cloud, Huawei Cloud, and AWS, which saw significant growth in their respective revenues (156%, 29%, and 293% YoY for the 1H25 period).

Key highlights include continued expansion in Southeast Asia, where revenue rose 22% YoY, fueled by strong performances in Thailand, the Philippines, Malaysia, and Indonesia, primarily from government digitalisation efforts. North Asia revenue grew 9% YoY under a quality growth strategy.

Valuation and Key Metrics

The target price for VSTECS is raised to HK$14.20, up from HK$7.60, reflecting increased AI revenue exposure and a forward PE of 15x 2025 earnings estimates. Analysts maintain a BUY recommendation, supported by expected margin expansion due to a favorable shift toward higher-margin cloud computing. Operational risks are controlled, and opportunities in AI and digitalisation are poised for growth.

Financial Outlook and Forecasts

VSTECS is projected to achieve steady growth in the financial year 2025, with earnings per share estimated at HK$0.95 (FY25E), from current levels, aligning with expanding net margins and gross margins. Comparison to the industry shows average P/E ratios, reinforcing the valuation appeal.

• Revenue Growth Projections: YoY growth is expected to decelerate slightly to 15.5% for 2025E and 10.2% for 2026E, based on latest estimates.
• Margin Expansion: Operating margins are forecast to improve, driven by cost management and revenue mix shifts.

Analysts emphasize that while the company benefits from AI demand, continued execution strategies and risk mitigation will be key for sustained performance.