The AI Data Center Catalyst Igniting Trigiant’s Massive Turnaround

Trigiant Group Limited (1300.HK) is presenting massive growth momentum as a turnaround play, primarily driven by technological breakthroughs in the AI data center supply chain, a dramatic shift back to profitability, and soaring top-line revenue. The stock has experienced a multi-fold rally from its 52-week low of HK$0.30.

Capitalizing on the AI Infrastructure Boom

• Core Supply Chain Entry: Trigiant’s subsidiary, Jiangsu Trigiant Technology, recently secured a partnership breakthrough by entering the core supply chain of a leading global storage enterprise. Its specialized feeder (signal cable) products will support heavy deployment in the AI Data Center (AIDC) intelligent computing sector.
• Massive Growth Momentum: Driven by the booming data center and AI hardware cycle, first-quarter revenue surged 50.3% year-on-year to approximately RMB 824.7 million. Gross profit grew even faster, sky-rocketing 92.7% year-on-year to RMB 118.3 million.

Executing a Strong Financial Turnaround

• Shift to Net Profitability: Trigiant recorded a substantial net income turnaround of CN¥105.18 million, recovering decisively from its previous net losses. This rebound was heavily anchored by stable demand for its Flame-Retardant Flexible Cables and RF Feeder Cable Series.
• Cleaner Balance Sheet: The group’s credit profile has significantly improved due to the recovery of legacy trade receivables from major telecom operators, resulting in minimized asset impairment losses. Debt obligations remain well-covered by robust operating cash flows and EBIT.

 A significant portion of Trigiant's FY2025 net profit turnaround did not come from product sales alone; it was aided by a 29.17 Million RMB reversal of bad debt provisions (impairment loss write-backs) as trade receivables were recovered better than expected. This is a one-time accounting boost, not a recurring product margin expansion.

Removing the reversal of bad debt provision in 2H2025 to arrive at the Core Profit:

• FY2025 1H Core Profit: RMB 24.955 Million
• FY2025 2H Core Profit: RMB 51.051 Million

If this growth percentage can be sustained, Trigiant's target price will be $15 within the next 12 months.

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