Shenzhen Honor Electronic (300870) 光大证券·2024-12-08 04:10Investment Rating - The report maintains a "Buy" rating for the company [6][135]. Core Viewpoints - The company is a leading domestic AI server power supply provider, benefiting from the wave of domestic industrialization [1]. - The company has achieved significant revenue growth, with a 28.95% year-on-year increase in revenue to 2.664 billion yuan in the first three quarters of 2024, and a remarkable 264.94% increase in net profit to 157 million yuan [1][4]. - The high-power data center power product segment has shown impressive growth, with a 464.12% year-on-year increase in revenue to 209 million yuan in the first half of 2024, driven by strong demand from major domestic internet companies [2][113]. - The company is expanding its product offerings in the power adapter segment, covering a wide range of power outputs from 3W to 400W, and is expected to see revenue growth due to the increasing proportion of high-margin products [3][120]. Summary by Sections Company Overview - The company specializes in the research, production, and sales of switch power supply products, including power adapters, server power supplies, communication power supplies, and battery chargers, with applications across various sectors such as office electronics, network communication, and AI servers [29][58]. Business Segments - Server Power Supply: The company has deep ties with leading server manufacturers and is well-positioned to benefit from the domestic replacement trend and the AI wave, with server power supply revenue contributing significantly to overall growth [2][111]. - Power Adapter: The company has a comprehensive product range in power adapters, with a focus on high-value products. Despite a slight decline in revenue in the first half of 2024, the company is expected to recover as the market stabilizes [3][120]. - Other Power Supply Businesses: The company is actively exploring new applications in the electric vehicle sector and other high-margin areas, with a 63.15% year-on-year increase in revenue from other power supply businesses in the first half of 2024 [125]. Financial Performance - The company forecasts net profits of 222 million yuan, 294 million yuan, and 392 million yuan for 2024, 2025, and 2026, respectively, indicating strong growth potential [4][135]. - The gross margin for the data center power supply business reached 26.24% in the first half of 2024, reflecting improved product mix and profitability [2][113]. Market Trends - The switch power supply industry is experiencing robust growth, with the market size expected to reach 253.2 billion yuan by 2025, driven by increasing demand for high-performance power supplies [58]. - The AI server market is projected to grow significantly, with the global AI server market expected to reach 31.8 billion USD by 2025, indicating a strong demand for high-power server solutions [78][79].