VSTECS Holdings Limited (HK:0856)
:0856
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VSTECS Holdings Limited
(0856)
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Rating:72Outperform
Price Target:
HK$11.00
▲(18.28% Upside)
Action:Reiterated
Date:06/03/26
The score is driven primarily by improving financial performance in 2025 (profitability rebound and better cash generation) while acknowledging thin margins and cash-flow volatility risk. Technicals are supportive with a strong multi-timeframe uptrend and positive momentum. Valuation is also constructive with a moderate P/E and a ~3.3% dividend yield.
Positive Factors
Revenue Growth
The multi-year revenue growth and 2025 re-acceleration indicate recovering end-market demand and stronger volume execution. For a distributor, sustained top-line momentum supports vendor leverage, scale benefits in logistics and services, and a firmer platform for margin expansion over months.
Negative Factors
Structurally Thin Margins
As a technology distributor, the company operates with persistently slim gross and net margins, leaving little buffer against vendor price pressure, freight/cost inflation, or competitive discounting. Small margin headroom makes earnings highly sensitive to adverse cost or pricing shifts.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
The multi-year revenue growth and 2025 re-acceleration indicate recovering end-market demand and stronger volume execution. For a distributor, sustained top-line momentum supports vendor leverage, scale benefits in logistics and services, and a firmer platform for margin expansion over months.
Read all positive factors
VSTECS Holdings Limited (0856) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$14.52B
Dividend Yield3.21%
Average Volume (3M)10.08M
Price to Earnings (P/E)10.4
Beta (1Y)1.30
Revenue Growth9.59%
EPS Growth29.11%
CountryHK
Employees5,622
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)0.98
Shares Outstanding1,436,452,000
10 Day Avg. Volume6,639,702
30 Day Avg. Volume10,079,877
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)1.07
Price to Sales (P/S)0.11
P/FCF Ratio6.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$13.26Price Target Upside42.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)1.13
Revenue Forecast (FY)HK$110.24B
VSTECS Holdings Limited Business Overview & Revenue Model
Company Description
As an investment holding enterprise, VSTECS Holdings Limited specializes in cultivating information technology (IT) product distribution channels and providing sophisticated technical solution integration services throughout North Asia and Southea...
How the Company Makes Money
VSTECS primarily makes money through technology distribution: it purchases ICT products (e.g., hardware and software) from upstream vendors and sells them to downstream channel customers (such as resellers, retailers, system integrators and enterp...
VSTECS Holdings Limited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 97.63B | 89.09B | 73.89B | 77.32B | 78.34B |
| Gross Profit | 4.35B | 3.93B | 3.50B | 3.37B | 3.64B |
| EBITDA | 1.92B | 1.75B | 1.62B | 1.47B | 1.79B |
| Net Income | 1.35B | 1.05B | 922.03M | 823.07M | 1.31B |
Balance Sheet | |||||
| Total Assets | 43.02B | 38.39B | 35.02B | 34.77B | 32.18B |
| Cash, Cash Equivalents and Short-Term Investments | 7.89B | 5.44B | 4.13B | 8.23B | 4.13B |
| Total Debt | 9.24B | 9.68B | 8.44B | 8.65B | 6.53B |
| Total Liabilities | 32.60B | 29.52B | 26.80B | 27.11B | 24.27B |
| Stockholders Equity | 10.14B | 8.64B | 8.22B | 7.66B | 7.91B |
Cash Flow | |||||
| Free Cash Flow | 1.61B | 1.69B | 601.41M | -171.90M | 527.57M |
| Operating Cash Flow | 1.65B | 1.82B | 640.23M | -147.87M | 580.07M |
| Investing Cash Flow | -46.13M | -300.93M | 137.76M | -517.66M | -47.04M |
| Financing Cash Flow | -833.91M | -837.13M | -1.37B | 1.57B | -942.10M |
VSTECS Holdings Limited Technical Analysis
Neutral
9.30
Price Trends
9.66
Positive
8.68
Positive
8.85
Positive
Market Momentum
0.32
Negative
49.36
Neutral
37.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0856, the sentiment is Neutral. The current price of 9.3 is below the 20-day moving average (MA) of 10.29, below the 50-day MA of 9.66, and above the 200-day MA of 8.85, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 49.36 is Neutral, neither overbought nor oversold. The STOCH value of 37.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0856.
VSTECS Holdings Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$14.52B | 10.35 | 13.91% | 3.21% | 9.59% | 29.11% | |
67 Neutral | HK$519.80M | 3.02 | 5.41% | 0.98% | 6.90% | -55.59% | |
67 Neutral | HK$969.84M | 16.40 | 3.40% | 4.94% | 17.39% | -55.26% | |
65 Neutral | HK$249.20M | 37.99 | 3.87% | 3.06% | -15.34% | -32.48% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | HK$6.12B | 24.54 | 5.16% | ― | 50.32% | -1.01% | |
44 Neutral | HK$834.82M | -16.27 | -12.13% | ― | -85.44% | -172.45% |
* Technology Sector Average
HK:0856
VSTECS Holdings Limited
10.11
4.02
66.12%
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Nimble Holdings Company
0.15
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-33.91%
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SiS International Holdings
1.87
0.13
7.47%
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2.39
175.74%
HK:0595
AV Concept Holdings Limited
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140.00%
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SiS Mobile Holdings Limited
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147.22%
VSTECS Holdings Limited Corporate Events
VSTECS Shareholders Approve All Resolutions at 2026 AGM
May 26, 2026
VSTECS Holdings Limited reported that all resolutions proposed at its annual general meeting on 26 May 2026 were approved by shareholders via poll voting. The meeting covered routine corporate matters including receipt of the 2025 audited financia...
VSTECS Sets 2026 AGM to Approve Dividend, Board Mandates and Auditor
Apr 23, 2026
VSTECS Holdings Limited has called its annual general meeting for 26 May 2026 in Hong Kong, where shareholders will review the audited consolidated financial statements and directors’ and auditors’ reports for the year ended 31 Decembe...
VSTECS Plans New Articles to Allow Treasury Shares and Embrace Paperless Regime
Apr 21, 2026
VSTECS Holdings Limited is a Hong Kong-listed company incorporated in the Cayman Islands and governed by the Listing Rules of The Stock Exchange of Hong Kong Limited. Its board includes executive, non-executive and independent non-executive direct...
VSTECS Declares Final HK$0.4177 Dividend for 2025
Mar 19, 2026
VSTECS Holdings Limited has declared a final ordinary cash dividend of HKD 0.4177 per share for the financial year ended 31 December 2025, payable in Hong Kong dollars. The dividend is subject to shareholder approval on 26 May 2026, with an ex-div...
VSTECS Posts Higher 2025 Profit and Proposes Increased Final Dividend
Mar 19, 2026
VSTECS Holdings Limited reported strong financial results for the year ended 31 December 2025, with revenue rising to HK$97.63 billion from HK$89.09 billion a year earlier. Gross profit increased to HK$4.35 billion and operating profit reached HK$...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.