Huaqin Technology (SH:603296) GOLDEN SUN SECURITIES·2025-10-28 12:01Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company has achieved significant revenue growth, with a 69.56% year-on-year increase in revenue to 128.88 billion yuan and a 51.17% increase in net profit to 3.10 billion yuan for the first three quarters of 2025 [1] - The diversified business segments are performing well, with notable growth in high-performance computing, smart terminals, AIoT, and automotive and industrial products [2] - The company is expanding its international presence through acquisitions and plans for a Hong Kong IPO, which is expected to enhance its capital strength [3] - Continuous investment in R&D is driving the company's growth, with R&D expenses reaching 4.62 billion yuan, a 23.7% increase year-on-year [4] - The financial forecast for 2025-2027 shows expected revenue growth of 40.6%, 19.1%, and 17.0%, respectively, with net profit growth of 40.6%, 18.4%, and 18.1% [5] Summary by Sections Financial Performance - For Q3 2025, the company reported revenue of 44.94 billion yuan, a 22.75% increase year-on-year, and a net profit of 1.21 billion yuan, a 59.46% increase year-on-year [2] - The gross margin for the first three quarters of 2025 was 7.84%, with Q3 gross margin at 8.17%, indicating steady improvement [2] Business Segments - High-performance computing accounted for 58.6% of total revenue, followed by smart terminals at 35.6%, with AIoT and automotive products making up 4.4% and 1.4%, respectively [2] R&D and Innovation - The company has established a strategic layout for smart products and is exploring new opportunities in automotive electronics, software, and robotics [4] Future Outlook - The company expects to achieve revenues of 154.45 billion yuan in 2025, 183.89 billion yuan in 2026, and 215.13 billion yuan in 2027, with corresponding net profits of 4.11 billion yuan, 4.87 billion yuan, and 5.75 billion yuan [5][6]