Huaqin Technology (SH:603296) Great Wall Securities·2024-11-06 17:04Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [17]. Core Views - The company reported a significant revenue increase in Q3, with a year-on-year growth of 45.36% and a quarter-on-quarter growth of 58.03%, driven by strong performance across various business segments, particularly in servers, high-speed network switches, and AIoT products [1][2]. - The company is expected to benefit from the upcoming consumer electronics peak season, with anticipated growth in PC and server-related businesses due to the AIPC replacement cycle and the strong demand for AI servers [6]. - The company has made strategic acquisitions, including the purchase of Easy Road and Nanchang Spring and Autumn, which are expected to enhance its competitive edge in the precision components sector and expand its customer base in North America [5][6]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 760.10 billion yuan, a year-on-year increase of 17.15%, and a net profit of 20.50 billion yuan, up 3.31% year-on-year [1]. - The company's revenue for Q3 alone reached 366.12 billion yuan, with a net profit of 7.59 billion yuan, reflecting a year-on-year increase of 8.04% [1]. - The gross margin for the first three quarters of 2024 was 9.76%, down 1.59 percentage points year-on-year, while the net margin was 2.68%, down 0.31 percentage points year-on-year [2][3]. - The company expects net profits for 2024-2026 to be 30.29 billion yuan, 36.30 billion yuan, and 41.86 billion yuan, respectively, with EPS projected at 2.98 yuan, 3.57 yuan, and 4.12 yuan [6][12].