FY25回顾：人工智能计算和自主研发产品保持强劲势头

FY25 review: AI compute and self-developedproductsmaintainstrong momentum strong momentum Target PriceHK$14.00(Previous TPHK$14.20)Up/Downside77.7%Current PriceHK$7.88 VSTECS reported FY25 results:total revenue increased by 10% YoY toHK$97.6bn, largely in linewithBloombergconsensusestimate; net profit grewby 29% YoY to HK$1.35bn, 5% ahead of consensus estimate thanks to theeffective opex control and increase in revenue contribution from higher-marginself-developed products. Looking ahead,managementexpectsto deliver a netincome CAGR of 20% over FY26-28E, supported by theoperatingleverage andincreased revenue from self-developed products. Given the solid operating China Software & IT Services Saiyi HE, CFA(852) 3916 1739hesaiyi@cmbi.com.hk Wentao LU, CFAluwentao@cmbi.com.hk Strong momentum of AI compute business.Revenue from enterprisesystems/consumer electronics/cloud computinggrewby2%/19%/29% YoYto HK$53.5/39.0/5.1bninFY25.Strong AI demand drove robust growth ofcomputingpower business,with Alibaba Cloud/Huawei Cloud/AWSbusiness revenue up by 38%/25%/120% YoY in FY25. The company builtacomprehensive domestic computing power ecosystem throughcooperatingwith Hygon,Cambricon and MetaX etc.The company Ye TAO, CFA(852) 3850 5226franktao@cmbi.com.hk Shuyin GUO(852) 3916 3716guoshuyin@cmbi.com.hk Investing in self-developed products and technology.Looking intoFY26E, the company plans to double its investment in the R&D of itsself-developed products and technology, such as agentic AI, LLM serviceplatform, and computing power operation capabilities. Supported by the Solid margin expansion and shareholder return.NPM expanded by0.2pptsYoY to 1.5% in FY25, primarily thanks to the effective control in G&Aexpenses (-6% YoY) andoperatingleverage. Looking ahead, we expectfurther margin expansion in FY26-28E, underpinned by the higher revenuecontribution from self-developed products and operating leverage. The Source: FactSet Business forecasts updateand valuation We valueVSTECSatHK$14.00per share based on12x 2026EP/E. Our targetP/Eisonpar withthe average P/E of its peers. Disclosures& Disclaimers Analyst Certification The research analyst who is primary responsible for the content of this research report, in whole or inpart, certifies that with respect to the securities or issuerthat 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 or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.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 report3 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 monthsHOLD: Stock with potential return of +15% to-10% over next 12 monthsSELL: Stock with potential loss of over 10% over next 12 monthsNOT RATED: Stock is not rated byCMBIGM Important Disclosures There are risks involved in transacting in any securities. The information contained in this report may not be suitable forthe purposes of all investors.CMBIGMdoes not provide individually tailored investment advice. This report has been prepared without regard to the individual investment objectives, financial positionor special requirements. Past performance has no indication of future performance, and actual events may differ materially from that which is contained in thereport.The value of, and returns from, any investments are uncertain and are not guaranteed and may fluctuate as a result of their dependence on the or its affiliate(s) to whom it is distributed.This report is not and should not be construed as an offer or solicitation tobuy or sell any security or any interest insecuritiesor enter into any transaction.NeitherCMBIGMnor any of its affiliates, shareholders, agents, consultants, directors, officers or employees shall beliable for any loss, damage or expense whatsoever, whether direct or consequential, incurred in relying on the information contained in this report.Anyonemaking use of the information contained in this report does so entirely at their own risk. The information and contents contained in this report are based on the analyses and interpretations of information believed to be publicly available and reliable.CMBIGMhas exerted every effort in its capacity to ensure, but not to guarantee, their accuracy, complet