China Post Securities: Upgrades Huaxun Technology to a Buy rating

China Post Securities Co., Ltd. Wu Wenji, Wan Wei recently conducted research on Huajin Technology and published the research report “Riding the Wave in the AI New Era,” giving Huajin Technology a buy rating.

Huajin Technology (603296)

Investment Highlights

Data business continues to grow rapidly, with revenue outlook for 2026 expected to increase steadily. The company’s 2025 data business revenue exceeds 40 billion yuan, nearly doubling; AI servers account for over 70%, and switch sales have doubled year-over-year, exceeding 2.5 billion yuan. The company has become a core supplier for three leading major clients. Additionally, revenue from industry clients has also doubled. In terms of supernode products, the company was an early mover in this category, with products gradually increasing shipments, which will bring scale advantages in 2026. Regarding capacity, all supernode products are produced using proprietary capacity, enabling end-to-end readiness and providing maximum resource assurance for customers. Looking ahead to 2026, the company’s procurement share among the three major CSP clients will continue to rise, product structure will be further optimized, AI server market share will remain leading, supernode products will achieve scale leadership, and switch sales will continue to double.

Leveraging platform advantages, the company is building a four-wheel drive layout of consumer-grade + industrial-grade + embodied intelligence + data collection. Robotics is a core emerging business within the company’s 3+N+3 strategy. Relying on AI computing hardware, ODM full-stack R&D, vertical integration, and mass production capabilities, the company has established a differentiated barrier with a four-wheel drive approach. Through acquisitions, it has entered the home cleaning robot market, achieving mass production and delivery for leading clients; domestic large-model companies’ data collection robots and wheel-type robots supporting flexible manufacturing are expected to be mass-produced and delivered in 2026; the first-generation humanoid robot has been debugged, and plans for a second-generation bipedal humanoid robot are underway; key components such as actuators and control boards for the brain and body are being self-developed.

Investment Advice:

We forecast the company’s revenue for 2025/2026/2027 to be 170.9/205.2/240.1 billion yuan, with net profit attributable to parent company of 4.0/5.3/7.0 billion yuan, maintaining a “Buy” rating.

Risk Tips:

Risks of technological iteration and R&D investment falling short; intensified market competition; industry cyclical fluctuations.

Latest profit forecast details are as follows:

In the past 90 days, three institutions have issued buy ratings for this stock; the average target price among institutions over the past 90 days is 125.1.

The above content is compiled from public information by Securities Star, generated by AI algorithm (Wenxin Algorithm Backup 310104345710301240019), and does not constitute investment advice.