WUS(SZ:002463) Sou Hu Cai Jing·2025-12-05 06:01Core Viewpoint - The company, Huadian Co., is planning to list on the Hong Kong Stock Exchange to raise funds for capacity expansion and investment in high-performance PCB development, particularly in the data communication and smart automotive sectors [1][5]. Group 1: Company Overview - Huadian Co. is a leading provider of PCB solutions in the data communication and smart automotive sectors, with a focus on high-growth and high-tech barrier products [2]. - The company has seen its stock price increase by over 84% this year, reaching a market capitalization of 138.7 billion RMB, with a TTM P/E ratio of 40.14, which is relatively low within the PCB sector [2]. Group 2: Market Position and Performance - Huadian Co. holds the top position globally in several PCB categories, including data center PCBs (10.3% market share), 22-layer and above PCBs (25.3% market share), and PCBs for switches and routers (12.5% market share) [4]. - The company has developed advanced technologies, including 108-layer multilayer board technology and the ability to mass-produce 44-layer and 54-layer PCBs, establishing a strong competitive moat [4]. Group 3: Financial Performance - The company's revenue and profit figures from 2022 to 2024 show significant growth, with revenues of 8.336 billion RMB, 8.938 billion RMB, and 13.342 billion RMB, and profits of 1.362 billion RMB, 1.490 billion RMB, and 2.566 billion RMB respectively [6]. - For the first three quarters of 2025, Huadian Co. reported revenues of 13.512 billion RMB, a year-on-year increase of 49.96%, and profits of 2.713 billion RMB, up 48.25% [6]. Group 4: Dividend Policy - The company has been generous with dividends, declaring 285 million RMB, 286 million RMB, 957 million RMB, and 962 million RMB from 2022 to the first half of 2025 [6]. Group 5: Strategic Focus and Future Growth - The company identifies AI-driven data center demand and the rapid development of electric and intelligent vehicles as key growth drivers for its long-term performance [5]. - The revenue contribution from high-speed switches and routers has been significant, with a notable increase in the share of AI servers and HPC in total revenue [8]. Group 6: Inventory Management - Despite a significant increase in inventory, the average turnover days have not extended, indicating effective inventory management [9].