Huaqin Technology (603296) 华安证券·2024-09-25 03:30Investment Rating - The report assigns an "Buy" rating for the company [1]. Core Views - The company is positioned as a platform-type enterprise focusing on smart hardware products, with steady growth across its business lines [1]. - The company has a strong emphasis on AI-enabled terminal products, which are expected to drive growth in various directions [1]. Summary by Sections 1. Smart Product Platform Enterprise - The company specializes in the R&D, design, manufacturing, and operational services of smart hardware products, serving well-known brands like Samsung, OPPO, and Xiaomi [8]. - The company has a robust R&D team with over 10,000 experienced personnel and invested over 4.5 billion yuan in R&D in 2023 [8][19]. - The company has established a flexible manufacturing model with major manufacturing centers in Nanchang and Dongguan, and has expanded its overseas manufacturing presence in countries like India and Vietnam [8][9]. 2. AI Empowering Terminal Products - The company is leveraging AI technology to enhance its product offerings, particularly in smartphones and PCs, which are expected to see increased demand due to advancements in AI applications [1][25]. - The company has maintained a leading market share of approximately 28% in the global smartphone ODM/IDH industry as of 2023 [10]. - The company has successfully entered the top four in the global notebook ODM market, with a growing market share [10]. 3. Financial Performance - From 2019 to 2023, the company's revenue grew from 35.3 billion yuan to 85.3 billion yuan, with a compound annual growth rate (CAGR) of approximately 24.7% [13]. - The net profit attributable to the parent company increased from 510 million yuan in 2019 to 2.71 billion yuan in 2023, reflecting a CAGR of about 52.1% [13]. - The company's gross margin improved from 7.9% in 2019 to 11.3% in 2023, indicating enhanced profitability [14]. 4. Shareholding Structure and Management Stability - The company's shareholding is relatively concentrated, with the top ten shareholders holding 72.99% of the shares, primarily consisting of company executives and employee stock ownership platforms [21][22]. - The management team has extensive experience, with an average tenure of over 14 years, contributing to a stable leadership environment [21][23]. 5. Future Outlook - The company expects to see continued growth in net profit, projecting 3.04 billion yuan, 3.62 billion yuan, and 4.12 billion yuan for the years 2024 to 2026, respectively [1].