HQTI(SH:688281) Tai Ping Yang Zheng Quan·2025-11-03 05:53Investment Rating - The report maintains a "Buy" rating for Huayin Technology (688281) with a target price of 85.00, compared to the last closing price of 71.24 [1][6]. Core Insights - The company has experienced rapid business development in its subsidiaries, with new orders continuing to grow. For the first three quarters of 2025, Huayin Technology achieved operating revenue of 801 million yuan, an increase of 8.63% year-on-year, while net profit attributable to shareholders decreased by 21.48% to 243 million yuan [4][5]. - Significant growth in subsidiary revenues was noted, with Huayin Hangfa's revenue increasing by 142.95% year-on-year, and Huayin Guangsheng's revenue growing by 184.92% year-on-year. The company expects to sign orders totaling between 650 million to 800 million yuan for the year [5][6]. - The company has increased its R&D investment by 81.39% year-on-year, amounting to 105 million yuan, leading to significant advancements in technology and product development [6]. Financial Performance - For the first nine months of 2025, the company reported a basic earnings per share (EPS) of 0.89 yuan, down 21.93% from the previous year [4]. - The forecasted net profits for 2025, 2026, and 2027 are 409 million yuan, 510 million yuan, and 632 million yuan respectively, with corresponding EPS of 1.50 yuan, 1.87 yuan, and 2.32 yuan [6][9]. - The company’s total market capitalization is approximately 19.418 billion yuan, with a total share capital of 273 million shares [3]. Revenue Growth Projections - The projected operating revenue for 2024 is 1.139 billion yuan, with a growth rate of 24.17%. The revenue is expected to reach 1.378 billion yuan in 2025, 1.737 billion yuan in 2026, and 2.171 billion yuan in 2027, with growth rates of 21%, 26%, and 25% respectively [9][15]. R&D and Innovation - The company is focusing on developing special functional materials and has seen over 60% of its new products enter mass production, with high growth rates in orders and revenue for specialized materials [6][15]. Market Position - The report indicates that the company is well-positioned within the defense and military industry, with expectations of outperforming the broader market indices in the coming months [1][16].