HMT(SH:603306) Xin Lang Cai Jing·2025-08-26 06:33Core Viewpoint - Huamao Technology is solidifying its core business in automotive passive safety while expanding into the optical communication and semiconductor sectors through the acquisition of Fuchuang Youyue, positioning itself for growth in these emerging markets [1][3][4]. Group 1: Automotive Passive Safety Market - The automotive passive safety system market is expected to reach $24.5 billion by 2025, with a compound annual growth rate (CAGR) of approximately 6.6% from 2022 to 2025 [2]. - Huamao Technology holds over 35% of the domestic market share in the automotive passive safety sector, benefiting from increased vehicle production and the rising penetration of new energy vehicles [2]. - The company is expanding its production capacity with a total investment of 1.05 billion yuan in its Vietnam production base and the renovation of its Xiamen facility, which is expected to contribute to revenue growth as the Vietnam plant ramps up production [2]. Group 2: Acquisition of Fuchuang Youyue - Huamao Technology plans to fully acquire Fuchuang Youyue through a combination of share issuance and cash payment, increasing its stake from 42.16% to 100% [3]. - Fuchuang Youyue is a leading manufacturer in the optical communication industry, with a comprehensive product range and a strong global production capacity [3]. - The company anticipates significant revenue growth driven by the increasing demand for AI applications and computing power, with projected revenues of 6.3 million yuan in 2023, 13.2 million yuan in 2024, and 6.5 million yuan in the first four months of 2025 [3]. Group 3: Investment Outlook - Huamao Technology is rated as a "buy" due to its leadership in the automotive passive safety sector and the expected growth from its new optical communication business [4]. - The company is projected to achieve net profits of 543 million yuan, 720 million yuan, and 915 million yuan from 2025 to 2027, indicating a strong growth trajectory [4].