Huaqin (H): New Buy: a consumer electronics ODM leader, AI server a new growth driver

Research evidence excerpt

Huaqin (H): New Buy: a consumer electronics ODM leader, AI server a new growth driver

Exhibit 12: Datacenter to contribute over 40% revenue by 2028E, Exhibit 13: We expect 27% earnings CAGR in 2025-28E

while Smartphone to drop to below 20% Net income trend, 2022-28E

Revenue contribution by key product line, 2025-28E

CNYmn

100% 9,000 8,413

27% 28% 27% 26% 6,917

75%

6,000 5,155 26% 32% 37% 42% 50% 4,081

18% 17% 2,585 2,708 2,929

25% 16% 16% 3,000

28% 23% 19% 17%

0%

0 2025 2026E 2027E 2028E

2022 2023 2024 2025 2026E 2027E 2028E

Smartphone PC Datacenter Others

Source: Company data, BofA Global Research estimates Source: Company data, BofA Global Research estimates

BofA GLOBAL RESEARCH BofA GLOBAL RESEARCH

ODM providers deliver end-to-end solutions—from design and R&D to supply chain

management, manufacturing, and delivery—acting as integrators across the value chain.

Their core advantage lies in strong independent R&D, scalable manufacturing, and the

ability to accelerate time-to-market, reduce costs, and enhance competitiveness for

customers through close collaboration with component suppliers and brand owners. Not

all ODMs are able to meet customer expectations for efficiency, competitiveness, and

innovation. Leading ODMs possess advanced R&D across hardware, software, and

mechanical engineering, enabling them to turn complex designs into mass production.

Building these capabilities demands significant technical expertise, specialized talent,

and large capital investments, making it difficult for new entrants to compete. Further

barriers include advanced manufacturing and global presence, which takes years of

accumulation, substantial capital investment and is hard to replicate.

Huaqin has built a unique ODMM platform – operation, development manufacturing and