Huaqin Technology (603296) 华鑫证券·2024-11-11 13:33Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown significant revenue growth in Q3 2024, achieving an operating income of 366.12 billion yuan, a year-on-year increase of 45.36% and a quarter-on-quarter increase of 58.03% [1] - The company is actively expanding its product strategy with a "2+N+3" layout, focusing on AIoT and automotive electronics to create new growth curves [1][3] - The acquisition of EasyRoad is aimed at strengthening the audio business and expanding customer channels in North America, which is expected to enhance the company's smart terminal business revenue [2] Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported a total revenue of 760.10 billion yuan, a year-on-year increase of 17.15%, and a net profit attributable to shareholders of 20.50 billion yuan, up 3.31% year-on-year [1] - The Q3 2024 results showed a net profit of 7.59 billion yuan, a year-on-year increase of 8.04% and a quarter-on-quarter increase of 10.63% [1] - The gross profit margin for Q3 2024 was 7.63%, a decrease of 2.65 percentage points quarter-on-quarter, primarily due to a decline in smartphone product margins and a shift in revenue structure towards lower-margin data center business [1] Revenue Forecast - Revenue projections for 2024-2026 are 1020.48 billion yuan, 1192.84 billion yuan, and 1361.74 billion yuan, respectively, with corresponding EPS of 2.88 yuan, 3.36 yuan, and 3.94 yuan [3][5] - The company is expected to maintain steady growth in traditional businesses while achieving new performance increments through data center and AIoT businesses [3] Strategic Initiatives - The company is focusing on a "2+N+3" product strategy, leveraging its leadership in the smartphone ODM sector and expanding into automotive electronics and data center businesses [1][3] - The AIoT business segment has shown remarkable growth, with a revenue increase of 241% year-on-year in the first three quarters of 2024 [1]