1H25结果回顾：强劲的云计算收入增长基于稳健的AI需求

1H25 result review: strong cloud computingrevenue growth on robust AI demand Target PriceHK$14.20(Previous TPHK$7.60)Up/Downside23.4%Current PriceHK$11.51 VSTECS announced 1H25results: total revenueincreased by14% YoY toHK$45.5bn,representing 44% of our FY25E estimate; net profit was up by 36%YoY toHK$649mn,equivalentto 49% of our FY25Eestimate. Strong demandfor AI computing power drove strong revenue growth of cloud computingbusiness (+68% YoY). As one of the leading distributors of AI chips andcomputing power in Asia, we expect VSTECS will continue to benefit from thegrowing demand for AI computing power. We maintain our FY25-27E earningsforecast largely unchanged. We raise ourtargetprice to HK$14.2based on 15xFY25E PE (previous: HK$7.60 based on 8x FY25E PE), mainlytoreflectlargerAI-related revenue exposure. Maintain BUY. China Software & IT Services Saiyi HE, CFA(852) 3916 1739hesaiyi@cmbi.com.hk Wentao LU, CFAluwentao@cmbi.com.hk Solidrevenue growth in Southeast Asia.Revenue from enterprisesystems/consumer electronics/cloud computingincreasedby14%/7%/68%YoY to HK$25.7/17.2/2.6bnin1H25. Revenue from SoutheastAsiagrew by22% YoY to HK$16.7bnin 1H25, mainly driven by strong growth in Thailand(+50%YoY),the Philippines(+45%YoY), Malaysia (+31%YoY) andIndonesia (+30% YoY).The solid growth in Southeast Asia was primarilydue to the robust government demand for digitalisation, andmanagementexpectsthe trend to continue in 2H25. Revenue from North Asiagrewby9% YoY to HK$28.8bn in 1H25, asthecompany executed a quality growthstrategy. Ye TAO, CFAfranktao@cmbi.com.hk Joanna Ma(852) 3761 8838joannama@cmbi.com.hk Stock Data Cloud computingbusiness delivered robust growth.Revenue fromcloud computing segment was up by 68% YoY to HK$2.6bn in 1H25,mainlyattributable to the strong demand for AI computing power. The companycontinued to deepencooperationwith leadinghyperscalers, with AlibabaCloud/Huawei Cloud/AWS revenue up by 156%/29%/293% YoY in 1H25.VSTECS’s subsidiary Cloud Staralso recorded a strong revenue growth of63% YoY in 1H25, currently offering services in 7 of the 9 nationalintelligentcomputingcentres in China. Looking ahead, Cloud Star will continue toexpand its offerings, such as the MaaS platform and industry solutions. Margin expansion onfavourablerevenue mix shift.GPMwas up by0.3pptsYoY to 4.8% and OPM expanded by 0.1pptsYoY to 2.0% in 1H25,mainly thanks to the favourable revenue mix shift to higher-margin cloudcomputing business. In China, the company will continue to execute qualitygrowth strategy to controlaccountreceivablesandoperational risks; inSoutheast Asia,it will capture the emerging opportunities such as AIcomputing and government digitalisation. We forecast net profit to increaseby 18% YoY in FY25E. Source: FactSet Business forecasts updateand valuation We valueVSTECSatHK$14.20per share based on15x 2025EP/E. Our targetP/Eis onpar with theaverage P/E of its peers. Disclosures& Disclaimers Analyst CertificationThe research analyst who is primary responsible for the content of this research report, inwhole or in part, certifies that with respect to the securities or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2)no part of his orher compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in thisreport.Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to thedate of issue of this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days after the date of issue of this report; (3) serve as an officer of any of the HongKong listed companies covered in this report; and (4) have any financial interests in the Hong Kong listed companies coveredin this report. CMBIGM RatingsBUY : Stock with potential return of over 15% over next 12 months: Stock with potential return of +15% to-10% over next 12 months: Stock with potential loss of over 10% over next 12 months: Stock is not rated byCMBIGM HOLDSELLNOT RATED :Industry expected to outperform the relevant broad market benchmark over next 12 months:Industry expected to perform in-line with the relevant broad market benchmark over next 12 months:Industry expected to underperform the relevant broad market benchmark over next 12 months CMB InternationalGlobal MarketsLimited Address: 45/F, Champion Tower, 3 Garden Road, Hong Kong, Tel: (852)3900 0888 Fax: (852) 3900 0800CMB InternationalGlobal MarketsLimited (“CMBIGM”) is a wholly owned subsidiary of CMB International Capital Corporation Limited (a wholly ownedsubsidiary of China Merchants Bank) Important DisclosuresThere are risks involved in trans