Huaqin Technology (SH:603296) Ge Long Hui·2026-01-25 08:50Core Viewpoint - In 2025, AI computing power is expected to drive core assets in the market, with optical modules leading the high-demand sector due to a combination of industrial necessity, explosive performance, and solid barriers, indicating a growth potential that resonates with industry trends and corporate competitiveness [1] Group 1: Company Performance - In the first three quarters of 2025, the company reported a revenue growth of 69.6% year-on-year, with net profit attributable to shareholders increasing by 51.2% [1] - The company has achieved over 100 billion in annual revenue, positioning itself as a platform enterprise with a comprehensive AI layout across multiple business sectors [1] - The high-performance computing segment accounted for 60.3% of revenue in the first half of 2025, benefiting from the demand for AI PCs and servers [5] Group 2: Business Structure - The business structure includes high-performance computing (60.3% of revenue), smart terminals (31.9%), and emerging businesses like automotive electronics and AIoT (5.1%), which create new growth curves [5] - The smart terminal segment is the fastest-growing, with a revenue of 450 billion in the first three quarters, reflecting an 84.4% year-on-year increase [7] - The automotive electronics segment achieved over 1 billion in revenue for the first time in 2025, with significant breakthroughs in smart cockpit and intelligent driving domains [8] Group 3: Competitive Advantages - The company has established a competitive moat through technology, customer relationships, production capacity, and capital, enabling it to navigate industry cycles effectively [9] - The company has a unique vertical integration model with a self-sufficiency rate of approximately 45% in structural components, leading to shorter R&D cycles compared to the industry average [10] - R&D investment exceeded 4 billion in the first three quarters of 2025, with a workforce of 17,000 and over 12,000 patents covering key areas like AI algorithms and automotive-grade technology [11] Group 4: Market Position and Future Outlook - The company serves a matrix of global top brands, including eight of the top ten smartphone brands and four of the top five PC brands, with a diversified customer base reducing reliance on major clients [12] - The dual-circulation network of domestic and overseas production bases supports high-end product mass production, with a projected 30% increase in overall capacity by 2026 [12] - The company is planning an IPO in Hong Kong in 2025, which is expected to optimize shareholder structure and broaden financing channels [12][13]