Vesync Co Ltd

02148: XHKG (HKG)
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Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation
HK$5.20ZwkHnfwtygc

Vesync: Lackluster Sales Update but Recovery Expected; Shares Undervalued

We keep Vesync’s fair value estimate at HKD 8.10 per share despite the disappointing overall gross sales data for first-quarter 2024. We think the firm remains undervalued, but the concerns about weaker consumer confidence will cap its near-term share price performance. We expect Vesync to deliver net profit CAGR of 17% over the next three years, underpinned by geographical expansion, offline channel penetration, and new product launches. We also believe the estimated 2024 dividend yield of more than 5% and ongoing share buybacks will support Vesync’s share price.

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