Equity Analysis /
Hong Kong

HK : Wasion Holdings - 2020 results lower than expected

    Mark Po
    Mark Po

    Research Analyst

    31 March 2021
    Published byCGS-CIMB

    Wasion reported its 2020 results, which were affected by the COVID-19 pandemic. We adjusted our net profit forecasts for Wasion for 2020F–2022F, as we factored in higher operating expenses, especially for RD. We reiterate our ADD rating with a lower target price of HK$3.57, based on 11x 2021F P/E. The downward revision of our target price was mainly due to a cut in our net profit forecasts. We maintain our ADD rating partly because of Wasion’s dividend yield and the value of its stake in Willfar Info [688100.CH].