Huaqin Technology (603296) 中泰证券·2025-04-25 12:44Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative performance increase of over 15% against the benchmark index within the next 6 to 12 months [5][12]. Core Views - The company has shown strong revenue growth, with a projected revenue of 109.88 billion yuan for 2024, representing a year-on-year increase of 28.8%. The net profit attributable to the parent company is expected to reach 2.93 billion yuan, up 8.1% year-on-year [6][8]. - The first quarter of 2025 saw impressive revenue of 35 billion yuan, a year-on-year increase of 115.7%, with a net profit of 840 million yuan, up 39.1% year-on-year [6][7]. - The company is benefiting from increased capital expenditures from domestic cloud service providers, which is expected to drive further revenue growth [7][8]. Summary by Sections Financial Performance - For 2024, the company forecasts revenue of 109.88 billion yuan and a net profit of 2.93 billion yuan, with a gross margin of 9.3% [6]. - In Q4 2024, revenue reached 33.87 billion yuan, a 65.6% increase year-on-year, with a net profit of 880 million yuan [6]. - In Q1 2025, revenue was 35 billion yuan, marking a 115.7% increase year-on-year, with a gross margin of 8.4% [6][7]. Profitability and Valuation - The company’s net profit is projected to grow to 3.64 billion yuan in 2025, with a corresponding P/E ratio of 17.9 [5][8]. - The report indicates a continuous improvement in profitability, particularly in the data center business, which has seen significant revenue growth [8]. Market Position and Growth Drivers - The company has established strong partnerships with major domestic cloud service providers, enhancing its market position and revenue potential [7][8]. - The anticipated recovery in the 3C electronics supply chain and the introduction of new AI products are expected to contribute positively to the company's growth [8].