Hoshion(SZ:002824) Huachuang Securities·2026-03-18 07:29Investment Rating - The report assigns a "Strong Buy" rating for the company, Hosheng Co., Ltd. (002824) [1][10]. Core Insights - Hosheng Co., Ltd. is a leading enterprise in aluminum alloy processing, with a comprehensive layout in consumer electronics, automotive, and server sectors. The company aims to provide "one-stop" solutions for high-end industrial aluminum alloys in the consumer electronics and new energy sectors [6][10]. - The company is expected to benefit from the AI upgrade in mobile phones, which is anticipated to drive a new replacement cycle, as well as the steady growth in demand for battery box structures in new energy vehicles [10][8]. Financial Performance - Projected total revenue (in million) for 2024A is 3,333, with a year-on-year growth rate of 14.7%. By 2027E, revenue is expected to reach 5,915 million, with a growth rate of 20.5% [2]. - The net profit attributable to shareholders is projected to be 80 million in 2024A, with a significant increase to 349 million by 2027E, reflecting a growth rate of 26.8% [2]. - The earnings per share (EPS) is expected to grow from 0.26 in 2024A to 1.12 in 2027E, indicating a strong upward trend in profitability [2]. Business Segments Consumer Electronics - The consumer electronics segment is expected to grow due to AI hardware upgrades and innovations in foldable screens, which are driving demand for aluminum alloy components [6][8]. - Hosheng has successfully developed high-performance aluminum alloys that exceed national standards, positioning itself as a key supplier for major clients like Foxconn and BYD Electronics [6][10]. Server Metal Structure Components - The demand for AI server structure components is projected to grow significantly, driven by the increasing need for computational power in AI applications. The global AI server shipment is expected to increase by over 28% in 2026 [8][10]. - Hosheng has actively entered the server market, providing metal structure components for servers and data centers, which positions the company to benefit from the rapid growth in the AI server market [8][10]. Automotive Sector - The automotive business is poised for growth as the penetration rate of new energy vehicles rises, leading to increased demand for battery box structures made from aluminum alloys [9][10]. - Hosheng is collaborating with leading companies in the industry, such as CATL and BYD, to meet the growing technical demands in the automotive sector [9][10]. Investment Recommendations - Hosheng Co., Ltd. is well-positioned to capitalize on the trends in AI upgrades in consumer electronics and the steady growth in new energy vehicles. The company is expected to achieve net profits of 152 million, 275 million, and 349 million from 2025 to 2027, respectively [10]. - The target price for the stock is set at 26.5 yuan, based on a price-to-earnings (PE) ratio of 30 times for 2026, reflecting a strong investment opportunity [2][10].