Core Viewpoint - The credit rating of Huanxu Electronics Co., Ltd. is maintained at AA+ with a stable outlook, reflecting its strong position in the electronic manufacturing services (EMS) industry and robust financial performance despite external challenges [3][5][12]. Company Overview - Huanxu Electronics continues to hold a leading position in the EMS industry, particularly in system-in-package (SiP) miniaturization technology, with a high degree of global capacity layout [3][12]. - The company has achieved growth in production and sales volume during the tracking period, with a significant reduction in cash turnover days and ample liquidity reserves [3][8]. Financial Performance - Total assets are projected to increase from 385.74 billion in 2022 to 399.98 billion in 2024, while total liabilities are expected to decrease from 228.25 billion to 219.39 billion [7][27]. - Operating revenue is forecasted to decline slightly from 685.16 billion in 2022 to 606.91 billion in 2024, with net profit decreasing from 30.60 billion to 16.44 billion during the same period [7][23]. - The company’s EBIT margin is expected to decrease, reflecting pressures from product structure changes and supply chain pricing [23][24]. Market Position and Strategy - Huanxu Electronics ranks 12th among global EMS providers, maintaining a strong market presence [13]. - The company is focusing on enhancing vertical integration and smart manufacturing capabilities while investing in R&D to strengthen its competitive edge [12][13]. Operational Efficiency - The company has improved its operational and management efficiency, leading to a significant reduction in cash turnover days from 51.26 days in 2023 to 41.20 days in 2024 [25]. - The company’s reliance on key suppliers and customers remains high, with the top five customers accounting for 52.93% of sales in 2024 [20][19]. Risks and Challenges - Geopolitical factors and unexpected tariff policies pose significant challenges to the company’s overseas operations and supply chain management [8][10]. - The company faces pressure from high dependency on key suppliers, with the top two suppliers accounting for 47% of procurement [19][20]. Future Outlook - The company is expected to maintain its leading position in the EMS industry, although revenue may experience slight declines due to macroeconomic conditions and market demand fluctuations [28][29]. - Capital expenditure and external financing needs are anticipated to decrease slightly, supported by strong operational cash flow [28].