HMD(002947) Huachuang Securities·2025-04-28 05:10Investment 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 Insights - The company's Q1 2025 performance aligns with expectations, achieving a revenue of 649 million yuan, a year-over-year increase of 52.59%, and a net profit attributable to shareholders of 108 million yuan, up 53.69% year-over-year [1][7]. - The growth is driven by strong performance in the precision flexible components for consumer electronics and the precision metal components from Huayang Tong, with significant contributions from major clients [7]. - The company has established a solid partnership with major clients, including Apple and Google, positioning itself well for future growth in the die-cutting market [7]. Financial Performance Summary - For 2024, the total revenue is projected at 2,486 million yuan, with a year-over-year growth rate of 36.7%. By 2025, revenue is expected to reach 4,130 million yuan, reflecting a growth rate of 66.1% [3][8]. - The net profit attributable to shareholders is forecasted to be 457 million yuan in 2024, increasing to 700 million yuan in 2025, with respective growth rates of 62.4% and 53.2% [3][8]. - The company's earnings per share (EPS) is projected to rise from 1.78 yuan in 2024 to 2.73 yuan in 2025 [3][8]. Market Position and Future Outlook - The company is well-positioned to benefit from the ongoing AI development trends, particularly in the server and communication equipment sectors, which are expected to see increased demand [7]. - The target price for the company's stock is set at 54.6 yuan, based on a 20x price-to-earnings ratio for 2025, compared to the current price of 31.71 yuan [3][7].