Vesync: Overall Gross Sales Indicate Robust Growth; Share Buyback Plan Is Positive

We maintain Vesync’s earnings forecasts and fair value estimate of HKD 7.40 after the release of its overall gross sales data for third-quarter 2023. We think the firm remains undervalued, but concerns over U.S. economic growth amid a high interest-rate environment may add volatility to the share price. That said, we believe Vesync’s share repurchase plan will support its share price performance. The firm announced in October that it will spend up to HKD 100 million for a share buyback (maximum 10% of the outstanding shares). This reflects management’s confidence in the firm’s long-term strategy and growth, in our view.