SDIC Securities (International): Maintaining the “Buy” Rating of Weisheng Holdings (03393) and raising the target price to HK$19.58
The Zhitong Finance App learned that SDIC Securities (International) released a research report saying that the ADO business of Weisheng Holdings (03393) is entering a period of rapid growth under strong demand from data centers and is becoming an important engine for the Group's overall business growth. Maintain the “buy” rating and increase the target price to HK$19.58 in accordance with the peer valuation comparison method.
The main views of SDIC Securities (International) are as follows:
incident
Weisheng Holdings recently announced that Weiyuan Energy, a non-wholly-owned subsidiary of its ADO business, introduced strategic shareholder Boyu Investment. According to the capital increase agreement between the two parties, Boyu Investment will subscribe for 48.81 million new shares of Weiyuan Energy with a total amount of RMB 380 million, accounting for about 8% of the expanded share capital. Weiyuan Energy is valued at about RMB 4.75 billion. It is expected that Weiyuan Energy and Boyu Investment will cooperate in capital and industrial resources. Relying on Boyu's extensive layout and cross-border investment experience in data centers, technology and new energy, it is expected to effectively empower the company to expand its business and enhance its market competitiveness, and help accelerate the global layout.
Data center business demand has entered a period of explosion, driving Weisheng Holdings' ADO business into a period of rapid growth
Weisheng Holdings' ADO business is operated by Weiyuan Energy, a non-wholly-owned holding subsidiary. Weisheng Holdings holds approximately 65% of Weiyuan Energy's shares. ADO's business mainly includes domestic Guonan grid power distribution business, base station and data center power supply services for the three major domestic telecom operators and leading Internet companies, overseas data center business, power distribution business, and small-scale energy storage business. Benefiting from the explosive growth of AI, domestic and overseas data center demand has entered an explosion period. The company has obtained orders from strategic customers such as Universal Data and Byte, and is actively developing large-scale customers. Data center orders reached 2.3 billion in 2025, and 1 billion is expected to confirm revenue this year. There is room for the company's data center business orders and revenue to double next year. ADO's business is entering a phase of explosive growth.
Weisheng Holdings and Boyu Investment cooperate to forge strong alliances to accelerate business development
Weisheng Holdings introduced strategic shareholder Boyu Investment in Weiyuan Energy, a subsidiary that operates ADO's business. The bank expects a strong alliance between Weisheng Holdings and Boyu Investment Holdings to cooperate in the fields of industrial resources and cross-border layout. Boyu Investment, founded in 2011, is an alternative asset management company that is deeply involved in the Chinese market and has a global layout. Boyu has offices in Hong Kong, Beijing, Shanghai and Singapore, invested in more than 200 companies, and built a diversified investment management platform covering private equity, open markets, infrastructure and venture capital. Boyu's investment portfolio covers leading domestic enterprises in various fields of consumer retail, technological innovation, healthcare and new energy, and has rich industrial resources to provide capital and strategic support for industrial enterprises.
Profit forecast: According to the bank's profit forecast, the company's net profit growth rate in 2025 and 2026 was over 30%. Considering that data center business requirements drive strong growth in the company's overall performance, and that the data center power supply and distribution business is strongly correlated with AI development, the bank believes that the company's valuation has more room for improvement compared to traditional meter business valuations, and that the company's valuation should be higher than that of intercompany meter companies. According to public information, ADO's business subsidiary Weiyuan Energy is also promoting an A-share listing. The bank believes that if successfully listed, it will further release the company's value.
Risk warning: Data center business implementation is slower than expected; overseas market business growth is slower than expected; China Grid and China Southern Power Grid procurement tender volume and price falls short of expectations; market competition intensifies.