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1H21 results beat our expectations
■ VSTECS Holdings Limited (VSTECS) reported a set of strong 1H21 results thanks to better cost control and strong revenue.
■ The Company performed well in the region despite the COVID-19 outbreak.
■ We believe that the Company will benefit from increasing demand for IT products, such as Big Data, cloud computing, AI and network security, in the region.
■ We raised our net profit forecasts after the 1H21 results announcement. VSTECS’ valuation doesn’t look particular expensive and offers a decent yield. We reiterate our ADD rating and have a higher target price of HK$9.36 (based on 11x 2021F P/E).