WUS(SZ:002463)2026-01-28 02:00Company and Industry Summary Company: Huadian Co., Ltd. (沪电股份) Key Financial Performance - 2025 Revenue: 18.945 billion (YoY +42%) [1] - Net Profit: 3.822 billion (YoY +47.74%) [1] - Impairment Provision: 253 million for the year [1] - Q4 Revenue: 5.433 billion (YoY +25.4%, QoQ +8.25%) [1] - Q4 Net Profit: 1.104 billion (YoY +49.4%, QoQ +6.67%) [1] - Q4 Impairment Provision: 79 million, significantly increased from Q3 [1] Operational Highlights - Q4 performance met expectations, achieving record high revenue and profit [1] - Revenue growth in Q4 was supported by an optimized product mix, with increased contributions from high-end products such as 800G switches and AI servers [1] - Despite tight production capacity, Q4 showed solid sequential growth [1] - The significant appreciation of the RMB in Q4 led to notable foreign exchange losses [1] Capacity Expansion and Future Outlook - Capacity Expansion: The company is accelerating capacity expansion, with new production lines in Kunshan and Thailand expected to contribute to revenue growth [2] - New Facilities: The Kunshan facility is ramping up production, projected to add 10 billion in annual revenue by H2 2026 [2] - Investment Plans: A recent announcement to invest 300 million USD in optical packaging and COWOP technology, with rapid capacity expansion expected over the next three years [2] - Market Position: Huadian is positioned as a leading AI PCB company, with a strong customer base among global tech giants [2] - Revenue Projections: Expected revenues of 6.5 billion and 10 billion for 2026 and 2027 respectively, with a target market capitalization exceeding 200 billion [2] Strategic Insights - The company is well-positioned in the AI computing network market, with a competitive edge and strong revenue certainty [2] - The ongoing technological upgrades and capacity expansions are anticipated to sustain revenue growth and enhance profitability [2]