VSTECS (00856) received its first coverage from CITIC Securities with a "Buy" rating. The firm projects the company's total revenue to reach HK$102.901 billion and HK$116.462 billion in 2025-2026 respectively, representing year-over-year growth of 15.5% and 13.2%. Enterprise systems revenue is expected to grow 18.5% and 17.0% respectively, while consumer electronics revenue growth is projected at 6.0% and 5.5%, and cloud computing revenue growth at 55% and 18%.
The research report forecasts VSTECS' net profit attributable to shareholders at HK$1.286 billion and HK$1.482 billion for 2025-2026, representing year-over-year increases of 22.24% and 15.28%.
The report notes that China's information technology innovation market continues steady growth with accelerating momentum expected ahead. Large language model technology iterations continue driving AI market expansion, while edge AI markets maintain rapid growth with diversifying application scenarios expanding market potential. Additionally, the hundred-billion-yuan cloud computing market is accelerating transformation, with AI Infrastructure as a Service (AIIaaS) serving as the primary growth engine.
China's IT distribution market maintains steady growth momentum. Southeast Asia's rapid economic expansion has driven surging demand for IT and distribution services, attracting global technology giants to actively deploy in the region.
The securities firm indicates that the AI wave is driving explosive growth in VSTECS' cloud computing business, while Southeast Asia expansion leads secondary growth. Leveraging its extensive channel network, the company has successfully built competitive barriers. Meanwhile, the synergistic positioning in consumer electronics and fintech continues generating business collaboration effects.
VSTECS has comprehensively positioned itself across the AI industry chain, completing coverage of upstream, midstream, and downstream AI segments to capitalize on new industry development opportunities. The information technology innovation segment has become a key growth engine driven by "domestic substitution" trends. The company has also created new performance growth momentum by strengthening full lifecycle cloud services and management, with subsidiary Synnex Cloud serving as a comprehensive cloud management expert with extensive business coverage.
Southeast Asia's growing computing power demand continues releasing dividend benefits, leading VSTECS into secondary growth. Current Southeast Asia computing power demand growth dividends are gradually materializing, with the company demonstrating significant profitability advantages in the region. The company will continue capturing Southeast Asia market opportunities to support domestic brand overseas expansion.