HMD(SZ:002947) Huachuang Securities·2024-04-01 16:00Investment Rating - The report maintains a "Strong Buy" rating for Hengmingda (002947) [24][25]. Core Views - The company achieved significant growth in 2023, with a revenue increase of 17.5% year-on-year, reaching 1.818 billion yuan, and a net profit of 281 million yuan, reflecting a 45.8% year-on-year growth [24]. - The report highlights the company's strong position as a platform supplier for major clients, benefiting from the release of production capacity in the server, liquid cooling, and energy storage sectors [24]. - The company is expected to continue its growth trajectory, with projected net profits of 900 million yuan by 2026, indicating a compound annual growth rate of 28.6% [24]. Financial Summary - Total revenue for 2023 was 1,818 million yuan, with a net profit of 281 million yuan [24]. - The company’s sales profit margin stood at 15.49% [24]. - The projected revenue for 2026 is 6.806 billion yuan, with an expected net profit of 900 million yuan [27]. - The earnings per share (EPS) for 2023 was 1.22 yuan, projected to rise to 3.91 yuan by 2026 [27]. Business Development - The report emphasizes the company's successful expansion into new business areas such as charging piles and energy storage, establishing itself as a qualified supplier for major brands like Huawei and XPeng Motors [24]. - The company has built strong relationships with over 200 core suppliers, enhancing its market position in the precision components sector [24]. - The liquid cooling and server businesses are expected to benefit significantly from the ongoing AI hardware development trend [24].