Huaqin Technology (SH:603296)2025-04-21 05:09Investment Rating - The report maintains an "Overweight" rating for the company [3][4][5]. Core Insights - The market reaction to the restrictions on H20 has been deemed excessive, with limited impact expected on the company's growth due to proactive measures taken by the company and its clients [1][3]. - The company is expected to see a 33% year-on-year increase in profits by 2025, supported by strong growth in its smartphone and PC businesses, which are projected to grow by 25% and 20% respectively [1][3][5]. - The anticipated revenue growth for 2025 is over 20%, with a projected increase of approximately 50% in the data center business, driven by improvements in domestic GPU performance and capacity [3][5]. Summary by Sections Investment Rating - The company is rated "Overweight" with a target price of 95.00 CNY as of December 31, 2025 [3][4]. Company Performance - The company has diversified operations across smartphones, PCs, and data centers, with a strong outlook for growth in these core areas [5]. - The company has increased its H20 inventory to support production through at least the first half of 2025 and is testing adaptations for domestic GPU solutions [1][3]. Financial Projections - The report forecasts a 28% increase in revenue and a 33% increase in profit for 2025, with the overall revenue growth target exceeding 20% [3][5]. - The company's stock price has seen a decline of 9.5% due to H20 restrictions, presenting a favorable entry point for investors [1][4].