Huaqin Technology (603296) 兴业证券·2024-05-07 05:02Investment Rating - The report assigns an "Accumulate" rating for the company, Huakin Technology [1]. Core Insights - Huakin Technology is a leading global ODM in smart hardware, with a product matrix of "2+N+3" covering various electronic segments [9][10]. - The penetration rate of ODM in the smartphone market is low, with AI implementation expected to drive both volume and price increases in smartphones [1][23]. - The company is actively expanding into the server and automotive electronics sectors, which opens up long-term growth opportunities [1][59]. Summary by Sections 1. Leading ODM in Smart Hardware - Huakin Technology has developed a comprehensive product structure, transitioning from mobile IDH services to a multi-category ODM platform [9][10]. - The company has established a strong client base, including major brands like Samsung, OPPO, and Xiaomi [10][31]. 2. Smartphone ODM Penetration and AI Impact - The global smartphone market is entering a mature phase, with IDC predicting a 2.8% increase in shipments in 2024 [23]. - The ODM penetration rate is expected to rise to 40% in 2024, driven by cost control and recovery in emerging markets [26]. - AI mobile processors are being introduced, enhancing smartphone capabilities and potentially leading to a new wave of upgrades [32][35]. 3. Growth in PC and Other Consumer Electronics - The laptop market is experiencing a recovery, with a 7% year-on-year increase in Q1 2024 shipments [39]. - AI PCs are anticipated to drive significant growth, with expected shipments reaching approximately 13 million units in 2024 [45][47]. - The company is well-positioned in the tablet and wearable markets, with high ODM penetration rates [50][54]. 4. Server and Automotive Electronics Expansion - The global server market is rapidly growing, with Huakin Technology seeing a threefold increase in data business revenue in 2023 [59][63]. - The automotive electronics market is also expanding, with the company actively engaging in smart cockpit and autonomous driving projects [59][68]. 5. Financial Forecast and Investment Recommendations - Revenue projections for 2024, 2025, and 2026 are estimated at 991.13 billion, 1,145.67 billion, and 1,297.14 billion respectively, with corresponding net profits of 30.82 billion, 35.86 billion, and 40.86 billion [70]. - The report suggests a valuation premium due to the anticipated growth in AI and server business segments [70].