WUS(SZ:002463) Zhong Guo Neng Yuan Wang·2025-12-02 03:17Core Viewpoint - Huada Electronic Co., Ltd. (referred to as Huadian) has submitted its prospectus for listing on the Hong Kong Stock Exchange, with CICC and HSBC acting as joint sponsors. The company is a leading provider of PCB solutions in the data communication and smart automotive sectors, driven by the growing demand for data centers fueled by artificial intelligence [1][2]. Financial Performance - Huadian's revenue for the years 2022, 2023, 2024, and the first half of 2024 and 2025 is projected to be RMB 8.336 billion, RMB 8.938 billion, RMB 13.342 billion, RMB 5.424 billion, and RMB 8.493 billion respectively. The revenue for the first half of 2025 is expected to increase by 57.2% year-on-year, accelerating from 49.3% in 2024 [1][2]. - The net profit for the same periods is expected to be RMB 1.362 billion, RMB 1.513 billion, RMB 2.587 billion, RMB 1.141 billion, and RMB 1.683 billion respectively. The net profit for 2024 is projected to grow by 71.1% year-on-year, significantly outpacing the revenue growth of 49.3%. The net profit for the first half of 2025 is expected to increase by 47.5% year-on-year [2]. Market Position - In the PCB market, Huadian holds a global market share of 10.3% in the data center sector, 25.3% in PCBs with 22 layers or more, and 12.5% in PCBs for switches and routers, all ranking first globally [1]. - The company's core PCB business accounts for over 95% of its revenue, with the revenue from PCBs with 32 layers or more increasing from RMB 512 million in 2022 to RMB 1.768 billion in 2024, and further to RMB 1.558 billion in the first half of 2025, doubling its revenue share from 6.1% to 18.3% over three years [2]. Customer and Supplier Concentration - Huadian faces high customer and supplier concentration risks, with the top five customers accounting for over 45% of revenue for three consecutive years, reaching 50.9% in 2024. The largest customer contributed 12.3% of total revenue [2]. - The top five suppliers accounted for 40.5% of purchases in 2024, with the largest supplier contributing 21.1%. The company relies heavily on a few suppliers for core raw materials, particularly copper-clad laminates [3].