Investigating Wasion Holdings (Part One)
Pulling out the bag of tricks
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Dear readers,
As a content creator and investor, Wasion ($3393.hk) is one of my favourite ideas:
It has almost US$ 2B in market cap and a moderate amount of liquidity.
The bulk of the business selling smart power, water, gas and heat meters enjoys double-digit revenue growth with healthy margins, driven predominantly by record Chinese investment in its grid.
Smart energy meter prices are reportedly up 47%. Chinese brokers are bullish about Wasion and UBS is bullish about Chinese energy equipment manufacturers. It may only be a matter of time before Wasion is the subject of more broker reports.
Wasion also sells meters outside China and should do well in ASEAN, which is also investing heavily in electrification in the next five years.
In other words, this part of the business should take care of itself.
The part of the business with the potential for explosive growth is just an hour’s drive away in Johor.
We visited Johor last weekend. The visit was so helpful that we plan on visiting again next Monday.
Below the paywall, we provide some colour on Day One’s scale in Johor and verify the extent of Wasion’s Johor factory ramp up. We think this report will be helpful for anyone investing in any part of the data center value chain, whether in APAC or beyond.
Factory ramp up is remarkably straightforward to monitor, and we envisage repeat visits before Wasion reports earnings in March 2026.
It is not rocket science - we simply counted the number of electricians turning up for work between 9 to 10am. We will repeat the count at a sensible interval. We also got to speak with someone at HR and someone responsible for planning.
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