Shenzhen Honor Electronic (SZ:300870) Zheng Quan Zhi Xing·2025-07-18 11:20Core Viewpoint - Shenzhen Oulutong Electronics Co., Ltd. maintains a stable credit rating of AA- due to its leading position in the switch power supply industry and strong growth in its data center power business, despite facing risks related to customer order fluctuations and raw material price volatility [1][3]. Company Overview - Oulutong is a leading manufacturer of switch power supplies in China, focusing on power adapters, data center power supplies, and other power products, with a stable collaboration with high-quality customers [1][4]. - The company reported a significant revenue growth of 79.95% in its data center power business for 2024, driven by high demand in the server industry [1][9]. Financial Performance - Total assets increased from 37.50 billion in 2023 to 53.62 billion in 2025, while net profit rose from 1.94 billion in 2023 to 2.68 billion in 2024 [1]. - The EBITDA margin improved significantly to 12.73% in 2024, reflecting better operational efficiency and product mix optimization [1][9]. Market Environment - The switch power supply industry has a large market size with diverse applications, including consumer electronics, network communication, and data centers, and is expected to grow at a compound annual growth rate of 4.7% from 2025 to 2031 [5][6]. - The global switch power supply market reached 30.81 billion USD in 2024, with a projected increase to 42.21 billion USD by 2031 [6]. Competitive Landscape - The industry remains competitive, with Taiwanese manufacturers holding significant market share, while domestic companies like Oulutong show substantial growth potential [8][9]. - Oulutong's sales to its top five customers accounted for 37.62% of total revenue, indicating a stable customer base but also potential risks from dependency on key clients [12][14]. Operational Strategy - The company has expanded its production capacity with new facilities in Mexico and Vietnam, enhancing its global supply chain and product delivery stability [14][15]. - Oulutong's R&D investment was 2.13 billion in 2024, representing 5.60% of its revenue, aimed at improving product competitiveness and innovation [9][10]. Risks and Challenges - The company faces risks from fluctuations in core customer orders, raw material price volatility, and exchange rate changes, particularly as it exports a significant portion of its products [1][10][14]. - The high proportion of raw materials in production costs poses challenges for cost control, especially with rising prices for semiconductors and other key components [15].