HK Stock Market Move | WASION HOLDINGS (03393) rises by more than 8% driven by AI, with data center electricity consumption demand increasing. Citigroup expects its overseas orders to grow rapidly next year.

WASION HOLDINGS (03393) rose by more than 8%, up 8.47% to HK$16.4 at the time of publication, with a turnover of HK$43.88 million. On the news front, it was reported that NVIDIA plans to hold a private summit next week, inviting start-ups focused on solving data center power issues that may hinder the development of artificial intelligence. Zhongtai International's previous research report pointed out that as the global AI industry rises, the demand for data center power consumption is increasing, driving the company's smart power distribution business to expand. The company's business positioning has also expanded from traditional industries to advanced technology, providing reassessment opportunities and breaking through the valuation framework of the Hong Kong stock industrial sector. Citigroup previously pointed out, based on guidance from WASION HOLDINGS, driven by strong demand for artificial intelligence data centers (AIDC), the new order amount from its overseas customers is expected to increase by 54% annually to RMB 2 billion by 2026. Citigroup predicts that the revenue contribution of Weisheng Data Center will gradually increase from 9% in 2024 to 16% and 20% in 2025 and 2026 respectively. Given the higher profit contribution of the AIDC business, Citigroup raised its net profit forecast for Weisheng by 11% to 17% for the years 2025 to 2027.