HMT(SH:603306)2025-10-30 01:56Summary of Huamao Technology Conference Call Company Overview - Company: Huamao Technology - Period: First three quarters of 2025 Key Financial Performance - Net Profit: Decreased due to employee stock ownership plan, Vietnam subsidiary production, and convertible bond interest expenses, but adjusted net profit increased by approximately 15% year-on-year [2][3] - Revenue: Achieved 1.784 billion yuan, a year-on-year increase of 15.87% [3] - Third Quarter Revenue: 677.6 million yuan, up 18.34% year-on-year [3] - Net Profit for Q3: Approximately 37 million yuan, showing a decline [3] Impact of Vietnam Factory - Production Start: Vietnam factory officially started production in Q2 2025, with gradual capacity ramp-up expected [4] - Challenges: Slow production ramp-up due to automotive industry characteristics and customer inspection cycles, leading to short-term profit decline [4][5] - Future Expectations: Anticipated significant growth in 1.6T optical module shipments, with expected output of 1.5 to 2 million units in 2026 [4][13] Subsidiary Performance - Fuchuang: Revenue close to 1.4 billion yuan with net profit between 160 to 170 million yuan [6] - Xuzhou Bokan: Reported an investment loss of approximately 50 million yuan due to capitalization progress issues [6] Market Demand - Domestic Market: Orders are pulsed due to cloud factory investment bidding cycles [8] - Overseas Market: Major customer count increased by 10% to 15%, with expectations for accelerated growth in Q4 and Q1 of the following year [8] Product Development - 1.6T Product: R&D started in 2024, with batch shipments beginning in Q2 2025, currently at a scale of several hundred thousand units, expected to grow by 80 to 100 times next year [9] - Pricing: 800G boards priced at over 100 USD, while 1.6T boards priced at over 200 USD [10] Revenue Recognition Method - Accounting Method: Utilizes net method for revenue recognition, which significantly reduces reported revenue compared to gross method [11] Future Revenue and Profit Expectations - 2026 Projections: Anticipated 20% growth in automotive parts business and doubling of optical communication business revenue [15] Competitive Landscape - Market Position: Holds 60% to 70% market share in high-speed module market, with limited competition in high-speed optical communication module PCB A sector [20][22] - Strategic Focus: Prioritizing high-quality customers and expanding production capacity [20][22] Additional Insights - OCS Business: Actively expanding in OCS-related services, with higher profitability per unit compared to optical modules [18] - Silicon Photonics and CPU Technology: Providing silicon photonics solutions and manufacturing based on customer designs [14] - Light-sensitive Resin Business: Plans to advance light-sensitive resin business in collaboration with Bokan [19]