AI Cloud Drives an Earnings Step Change; BOCI Initiates Envision Greenwise (01783) at BUY

Zhitong Finance App has learned that BOCI Securities has published an initiation report on Envision Greenwise (01783), assigning a BUY rating and a target price of HK$6.90. The report values the company on 20x FY2029E EPS (EPS of approximately HK$0.34) and believes AI Cloud will become the company's principal earnings growth engine, transforming its earnings mix.

AI Cloud Becomes the Core Earnings Engine

The report notes that in June 2026 the company announced the acquisition of interests in YV CLOUD and Shanghai Yovole Cloud Computing for a base consideration of HK$2.2bn, entering cloud computing and AI infrastructure services. It then advanced purchases of high-performance servers for its AI Cloud business, kicking off the transformation into a compliant AI computing platform.

Scarcity of computing capacity is the core of the industry's thesis. Against the backdrop of US export controls, the company has gained access to scarce, compliant NVIDIA server procurement channels for China through the NVIDIA Cloud Partner (NCP) credentials held by Shanghai Yovole. According to BOCI's channel research, the company had secured an initial allocation of over 500 high-performance eight-GPU servers, equivalent to more than 4,000 GPUs, while customer orders substantially exceed the company's existing GPU capacity.

Domestic high-end computing rents remain firm. Mysteel data show that H100 on-demand rents in the Chengdu–Chongqing region reached RMB12.90 per GPU-hour, up approximately 19.1% from the preceding rents. Overseas, Nebius raised its H200 on-demand rate by 20%, to US$5.40 per GPU-hour, while total contract value signed in the quarter increased almost fourfold sequentially.

Rising Rents and Locked-In Long-Term Contracts Support a Roughly 3.2-Year Payback per Server

On the business model, the company has signed five-year GPU leasing contracts with leading CSP and LLM customers, with approximately 12 months of rent prepaid. Assuming a purchase cost of RMB3.5m per eight-GPU server and monthly rent of RMB100,000, simple payback at full utilisation is approximately 3.2 years, and financial leverage could further shorten the payback on equity invested. Large-model developer MiniMax recently participated in the company's share placement and convertible bond subscription, which the report interprets as recognition of, and closer alignment with, the company's NCP-related procurement capabilities; cooperation could extend to resource planning and cluster deployment.

On forecasts, BOCI expects FY2027–FY2029 revenue of HK$3,849m, HK$6,854m and HK$10,490m, a three-year revenue CAGR of approximately 62%, with attributable net profit of HK$216m, HK$762m and HK$1,407m. The AI Cloud server fleet expands from 531 to 4,031 units, with FY2029 AI Cloud revenue of HK$5,084.6m contributing 76.5% of group gross profit and lifting the group gross margin from 8.0% in FY2026 to 21.5%. AI Cloud will become the largest source of both revenue and gross profit.

Battery Circularity and AI Infra Recycle Broaden the Earnings Base

The report also notes that Hong Kong's first EV battery treatment facility, operated by the company, opened in July 2026, with the Hong Kong government projecting local retired battery volumes to rise from approximately 1,300 tonnes in 2026 to 6,700 tonnes in 2030. Battery Circularity revenue is forecast at HK$760m in FY2029. AI Infra Recycle benefits from the US copper network retirement wave — AT&T plans to shut down the vast majority of its copper services by the end of 2029 — and from its exclusive trading partnership with Fortune Metal Group, with FY2029 revenue forecast at HK$4,645.5m.