Yesterday, State Grid Corporation released the results of its first tender in 2021. Wasion (including both Wasion and Wilfar) ranked no.1. The first tender in 2021 was much bigger than that in 2020. Wasion’s order book was Rmb3.7bn at the end of 2020; the current contract wins should support its growth in 2021. Selling pressure from its removal from a key index is expected to fade gradually. We reiterate our ADD rating with our target price unchanged at HK$3.57, based on 11x 2021F P/E. Wasion’s dividend yield and the value of its stake in Willfar Info [688100.CH] are two factors that shouldn't be ignored.
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