HMD(002947) Huachuang Securities·2025-04-28 04:03Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [22]. Core Views - The company's Q1 2025 performance aligns with expectations, driven by major clients in the die-cutting sector and the Huayang Tong business, with a revenue of 649 million yuan, a year-over-year increase of 52.59%, and a net profit of 108 million yuan, up 53.69% year-over-year [1][7]. - The report highlights a robust growth trajectory for the company, with projected revenues increasing significantly from 2.486 billion yuan in 2024 to 7.152 billion yuan by 2027, reflecting a compound annual growth rate (CAGR) of 36.7% [3][8]. - The company is positioned to benefit from the expanding market for precision flexible components and metal parts, particularly in the consumer electronics sector, as it has established strong relationships with major clients like Apple and Google [7][8]. Financial Summary - For Q1 2025, the company reported a gross margin of 30.12%, an increase of 1.67 percentage points year-over-year [1]. - The projected net profit for 2025 is estimated at 700 million yuan, with a growth rate of 53.2% compared to 2024 [3][8]. - The earnings per share (EPS) is expected to rise from 1.78 yuan in 2024 to 4.77 yuan by 2027, indicating strong profitability growth [3][8]. Market Position - The company has successfully entered a harvest phase for its die-cutting business after years of strategic investment, with a significant market opportunity driven by AI and product upgrades in consumer electronics [7][8]. - Huayang Tong's server business is expected to benefit from the AI development trend, with increasing demand for charging piles and energy storage solutions [7][8]. - The company has built a flexible production network to adapt to client needs, enhancing its supply chain resilience [7].