Core Viewpoint - The report from Dongfang Securities indicates that Huqin Technology's consumer electronics fundamentals remain solid, and short-term industry disruptions do not alter the company's upward trend [1] Company Analysis - Recent concerns among investors about rising storage prices affecting end consumers and potentially impacting terminal sales and profitability in other supply chain segments are addressed [1] - The company primarily serves leading domestic and international brands, which typically sign long-term agreements with upstream core suppliers to lock in prices and inventory [1] - The ODM industry operates on a customer-supplied material model, meaning price increases in storage, OLED screens, or main control components will not erode the company's profitability [1] - Huqin Technology is a domestic leader in PC ODM, with a continuous increase in overseas customer share [1] Industry Outlook - The data center business is expected to maintain high growth, with further optimization of the product structure [1] - Future data business is anticipated to achieve sustained revenue growth, with ongoing improvements in product structure and steady enhancement of profitability [1] - Based on comparable companies' 26-year 21x PE valuation, the target price is set at 107.73 yuan [1]

Group 1 - The core viewpoint is that the consumer electronics sector remains stable, and short-term industry disruptions will not alter the upward trend of the company [1] - Concerns about rising storage prices affecting end consumers and overall profitability in the supply chain are mitigated by long-term agreements with major clients and suppliers [1] - The company's ODM shipment volume is expected to continue growing due to increasing industry penetration and market share among leading ODM manufacturers [1] Group 2 - The company leads in the domestic PC ODM market, with laptop shipments expected to exceed 18 million units in 2025, contributing to over 30% revenue growth in the first three quarters of 2025 [2] - The company anticipates continued high growth in laptop shipments, with significant contributions expected from North American clients starting in 2026 [2] - The company aims to further enhance its global laptop ODM market share and narrow the gap with Taiwanese manufacturers [2] Group 3 - The data center business is projected to maintain high growth, with expected revenue exceeding 40 billion in 2025, despite geopolitical uncertainties [3] - The company has achieved significant growth in AI servers and general servers, alongside a strong accumulation of cross-platform system R&D capabilities [3] - Future revenue growth in the data center segment is anticipated, with an optimized product structure and steady improvement in profitability [3]

Investment Rating - The investment rating for the company is "Buy (Maintain)" with a target price of 107.73 CNY [7][12]. Core Insights - The company's financial stability is supported by diverse business segments driving growth, with a significant increase in revenue projections for PC and data center businesses [3][11]. - The forecasted net profit attributable to the parent company for 2025-2027 is 41 billion, 52 billion, and 63 billion CNY respectively, reflecting an upward revision from previous estimates [3][12]. - The company is expected to maintain growth in its ODM (Original Design Manufacturer) business, particularly in the smartphone and PC sectors, with a notable increase in shipments and revenue [11][12]. Financial Summary - Revenue projections for 2023A to 2027E are as follows: 85,338 million CNY, 109,878 million CNY, 158,374 million CNY, 194,316 million CNY, and 233,809 million CNY, with growth rates of -7.9%, 28.8%, 44.1%, 22.7%, and 20.3% respectively [5][14]. - The operating profit is projected to grow from 2,831 million CNY in 2023A to 6,978 million CNY in 2027E, with corresponding growth rates of 1.0%, 6.7%, 49.7%, 28.0%, and 20.5% [5][14]. - The net profit attributable to the parent company is expected to increase from 2,707 million CNY in 2023A to 6,280 million CNY in 2027E, with growth rates of 5.6%, 8.1%, 39.2%, 28.0%, and 20.5% [5][14]. Business Performance - The company has a strong foothold in the consumer electronics sector, with a solid base that is expected to withstand short-term industry fluctuations [11]. - The PC ODM business is projected to see significant growth, with an expected revenue of over 300 billion CNY in 2025 and a shipment target of 1.8 million units [11]. - The data center business is anticipated to achieve over 40 billion CNY in revenue for 2025, with continued growth expected in AI servers and general servers [11].