Huaqin Technology (SH:603296) Orient Securities·2025-04-29 05:25Investment Rating - The report maintains a "Buy" rating for the company with a target price of 80.01 CNY based on a 21x PE valuation for 2025 [2][5]. Core Views - The company is expected to achieve a net profit of 39 billion CNY in 2025, 48 billion CNY in 2026, and 58 billion CNY in 2027, with a slight adjustment in gross margin predictions [2][9]. - The company has shown resilience through a diversified product portfolio and a global supply chain strategy, which mitigates risks associated with market fluctuations [8]. Financial Performance Summary - Revenue for 2023 is projected at 85.34 billion CNY, with a year-on-year decline of 7.9%, followed by a recovery with a growth of 28.8% in 2024, and further growth of 32.8% in 2025 [4][10]. - The company's gross margin is expected to be 11.3% in 2023, declining to 9.3% in 2024, before gradually improving to 10.1% by 2026 and 2027 [4][10]. - The net profit attributable to the parent company is forecasted to grow from 2.71 billion CNY in 2023 to 5.84 billion CNY in 2027, reflecting a compound annual growth rate of approximately 21.5% [4][10]. Business Segment Growth - The company has reported significant growth across various business segments, including a 188% increase in AIoT and a 91% increase in automotive and industrial products in Q1 2025 [8]. - The smartphone and wearable segments have also shown strong performance, with revenues doubling in these categories [8]. Global Expansion Strategy - The company has implemented a "China + VMI" global supply chain strategy, establishing manufacturing bases in Dongguan and Nanchang, as well as overseas in Vietnam, Mexico, and India [8]. - Approximately 50% of the company's revenue comes from overseas markets, with only about 10% directly from the U.S., indicating a diversified market presence [8].