HUAQIN Shares Surge Over 8% on Strong Revenue Projections for Flagship Product

Stock News07-22

Shares of HUAQIN (03296) surged more than 8% in trading. At the time of writing, the stock was up 8.02% to HK$74.75, with a turnover of HK$50.74 million.

Key Drivers Behind the Rally

The company released an investor relations activity record indicating that its flagship 'Super Node' product began small-batch shipments in the second quarter and will enter a phase of mass delivery starting from the third quarter. It is projected that revenue from this single product line alone will surpass RMB 10 billion for the full year, with expectations for continued rapid growth over the next two years.

Profitability and Business Segment Outlook

The gross margin for the Super Node product is superior to that of AI servers, which is anticipated to drive a steady improvement in the overall gross margin of the company's data business segment.

For the data center business, full-year revenue is forecast to increase by approximately 50% year-over-year, with growth accelerating significantly in the second half of the year.

The switchgear business is expected to achieve revenue of around RMB 6 billion this year, representing a doubling in size, and is also projected to maintain high growth rates in the coming two years.

In the automotive electronics division, the company secured project designations from Geely and Chery in the first half and completed the establishment of a joint venture with Toyota Boshoku. This segment is forecast to double in size this year, with revenue reaching between RMB 2 billion and RMB 3 billion.

Within the consumer electronics segment, smart wearable products are expected to grow by over 30% for the full year, while notebook computer business shipments are projected to see substantial growth.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment