Valuetronics - UOB Kay Hian 2024-06-28: Foray Into The AI Industry With Goal For Further Expansion In The Near Term

• On 24 Jun 24, Valuetronics announced that it was entering the AI industry via a partnership with the SinnetCloud Group, which is an experienced graphics processing unit (GPU) and AI solutions provider and affiliated to Shenzhen-listed Beijing Sinnet Technology Co (300383.SZ).

Foray into AI industry with established JV partner.

• - Read this at SGinvestors.io -
• Valuetronics will acquire the GPU-enabled servers and ancillary hardware required for the JV and lease them back to Trio AI for a term of 60 months at a rent calculated to principally cover the preliminary equipment acquisition cost not exceeding HK$60m.

Plans to invest further to grow the JV if it gains traction.

• - Read this at SGinvestors.io -
• We understand that SinnetCloud Group has already started pre-selling the GPU and AI related value-added cloud services even before the formation of this JV. It is targeting Hong Kong-based customers including start-up, fintech, health tech and media tech.

Positive industry dynamics in the GPU and AI related value-added cloud services in Hong Kong.

• Read more at SGinvestors.io.

Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2024-11-14 Valuetronics - 1HFY25 Results In Line; New Customers & JV Paving Way For Growth.

Price targets by other brokers at Valuetronics Target Prices.

Listing of research reports at Valuetronics Analyst Reports.

Relevant links:
Valuetronics Share Price History,
Valuetronics Announcements,
Valuetronics Dividend Payout Dates & Corporate Actions,
Valuetronics News