HON-Flex(300657) 民生证券·2024-11-08 17:49Investment Rating - The report maintains a "Recommended" rating for Hongxin Electronics (300657.SZ) [2][4]. Core Views - The company is raising funds through a private placement to enhance its AI computing and FPC (Flexible Printed Circuit) business, with the actual controller fully subscribing to the offering, signaling confidence in the company's future [2]. - The company reported strong performance in the first three quarters of 2024, achieving a revenue of 4.449 billion yuan, a year-on-year increase of 81.40%, and a net profit of 55 million yuan, marking a turnaround from losses since 2021 [2]. - The company is positioned to benefit from the growing demand in the AI computing sector and has established itself as a core supplier for major clients like Huawei, which is expected to drive revenue growth in the FPC segment [2][3]. Financial Forecasts - Revenue is projected to grow from 3.478 billion yuan in 2023 to 11.377 billion yuan in 2026, with growth rates of 24.6%, 92.7%, 37.7%, and 23.2% respectively [3][5]. - The net profit attributable to shareholders is expected to recover from a loss of 436 million yuan in 2023 to a profit of 755 million yuan in 2026, reflecting a significant turnaround [3][5]. - The earnings per share (EPS) is forecasted to improve from -0.89 yuan in 2023 to 1.55 yuan in 2026, indicating a positive trend in profitability [3][5]. Business Development - The company is investing 1 billion yuan in building an AI computing server manufacturing base, with an initial production capacity of 20,000 servers [2]. - Collaborations with local governments and major clients are expected to enhance the company's market position and expand its service offerings in AI solutions across various sectors [2][3].