HMD(SZ:002947) Huachuang Securities·2025-10-30 05:14Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [23]. Core Insights - The company reported a revenue of 1.963 billion yuan for the first three quarters of 2025, representing a year-over-year increase of 15.51%. The gross margin was 33.39%, and the net profit attributable to shareholders was 408 million yuan, up 31.24% year-over-year [1]. - The third quarter revenue was 718 million yuan, showing a year-over-year decline of 5.22%, while the net profit attributable to shareholders increased by 18.12% to 174 million yuan [1]. - The company’s precision flexible structural components for consumer electronics achieved a revenue of 1.031 billion yuan in the first half of 2025, reflecting a year-over-year growth of 38.6% [8]. - The report highlights the company's strong relationships with major clients, including being listed among Apple's top 200 global suppliers and serving well-known clients like Google [8]. - The company is expected to benefit from the growing AI server market and the expansion of its new energy business, with production capacity increasing at its manufacturing base in Huizhou [8]. Financial Summary - The company is projected to achieve total revenue of 2.828 billion yuan in 2025, with a year-over-year growth rate of 13.7% [3]. - The net profit attributable to shareholders is forecasted to reach 611 million yuan in 2025, reflecting a growth rate of 33.7% [3]. - The earnings per share (EPS) is expected to be 2.38 yuan in 2025, with a price-to-earnings (P/E) ratio of 20 [3]. - The target price for the company's stock is set at 62.4 yuan, compared to the current price of 47.33 yuan [3].