Huaqin Technology (603296) 申万宏源·2024-10-30 03:39Investment Rating - Buy (Maintained) [10] Core Views - The company's Q3 2024 revenue reached 760.1 billion yuan, a YoY increase of 17.2%, with net profit attributable to the parent company at 20.5 billion yuan, up 3.3% YoY [8] - The company's Q3 2024 revenue hit a historical high of 366 billion yuan, with net profit attributable to the parent company at 7.59 billion yuan, up 8.0% YoY [8] - The company is a global leader in the smart hardware ODM industry, with over 200 million units shipped in 2021 for its "smart hardware trio" (smartphones, laptops, and tablets) [8] - The company's data business has made breakthroughs with top CSP clients, and its AIoT revenue grew 241% YoY in the first three quarters of 2024 [9] - The company's automotive and industrial revenue grew 81% YoY in the first three quarters of 2024 [9] Financial Summary - The company's total operating revenue for 2024E is projected to be 1,048.5 billion yuan, with a YoY growth rate of 22.9% [7] - Net profit attributable to the parent company for 2024E is projected to be 28.59 billion yuan, with a YoY growth rate of 5.6% [7] - The company's gross margin for 2024E is projected to be 10.4%, with ROE at 12.3% [7] - The company's EPS for 2024E is projected to be 2.81 yuan per share [7] Business Strategy - The company follows a "2+N+3" smart hardware platform strategy, focusing on smartphones and laptops while expanding into data centers, automotive electronics, and software [9] - The company's main product revenue in 2023 was 49.1 billion yuan for high-performance computing, 31.3 billion yuan for smart terminals, 1.6 billion yuan for AIoT, and 800 million yuan for automotive and industrial products [9] - The company expects smartwatch sales to grow over 50% in 2024, with TWS耳机 sales potentially doubling [9] Market Position - The company ranks 16th in the 2022 Top 100 Electronic Information Enterprises and 213th in the 2023 Fortune China 500 [8] - The company's major clients include Samsung, OPPO, Xiaomi, vivo, Amazon, Lenovo, Acer, Asus, and Sony [9] - The company's top five clients accounted for 65%-72% of its revenue from 2020 to 2023 [9] Global Layout - The company has a "1+5+5" global layout, with its headquarters in Shanghai, five R&D centers, two domestic manufacturing centers, and three overseas manufacturing bases [10]