CICC Lifts Wasion Holdings Target 150% on North America Plan

Edgen Stock

·Mar 27 2026, 07:52

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Key Takeaways

Investment bank CICC dramatically increased its price target for Wasion Holdings to HKD30, a 150% lift, maintaining its "Outperform" rating. The upgrade follows better-than-expected performance forecasts for 2025 and a promising new strategy for entering the North American market.

Target Price Hike: CICC raised its target price on Wasion Holdings by 150% to HKD30, signaling strong confidence in the company's future.
Growth Catalyst: The upgrade is underpinned by Wasion's strategy to expand into the North American market using its Mexican factory to sell electricity meters and distribution systems.
Strong Forecasts: Wasion projects a 50% year-over-year increase in net profit for 2025, reaching an estimated RMB10.6 billion.

CICC Raises Wasion Target 150% on Strong Profit Outlook

China International Capital Corporation (CICC) issued a significant upgrade for Wasion Holdings (03393.HK), raising its target price by 150% to HKD30 while reiterating an "Outperform" rating. The investment bank's bullish stance is a direct response to the company's 2025 performance guidance, which surpassed CICC's initial expectations.

Reflecting this optimism, CICC adjusted its own financial models, increasing its net profit forecasts for Wasion for this year and next year by 8% and 6% to RMB13.3 billion and RMB16.2 billion, respectively. This revision is based on anticipated product upgrades and gains from cost reduction and improved efficiency.

North American Expansion Underpins 50% Profit Growth Forecast

A key driver of the upgraded valuation is Wasion's strategic initiative to penetrate the North American market. The company plans to leverage its factory in Mexico to introduce a new generation of electricity meters and distribution systems to the region, a move CICC views favorably.

This expansion strategy supports Wasion's robust internal projections. The company expects to achieve total revenue of RMB100.7 billion in 2025, a 15.6% year-over-year increase. More significantly, it anticipates net profit attributable to shareholders will grow by 50% to RMB10.6 billion, alongside a planned dividend payout ratio of 40%.