Huqin Co Ltd - A: NP beat on solid execution and investment gains; datacenter acceleration to drive re-rating in 2H26

研报英文原文证据摘录

Huqin Co Ltd - A: NP beat on solid execution and investment gains; datacenter acceleration to drive re-rating in 2H26

Asia Pacific Equity Research

15 July 2026

Overweight

Huaqin Co Ltd - A 603296.SS, 603296 CH

Price (15 Jul 26): Rmb78.20

NP beat on solid execution and investment gains;

▲ Price Target (Jun-27): Rmb112.00

datacenter acceleration to drive re-rating in 2H26 Prior (Dec-26): Rmb96.50

Huaqin pre-announced stronger-than-expected earnings in 2Q26, supported by China

continued share gains across segments and investment gains. While investors Technology

remain concerned about weakening demand in smartphones and PCs following AC Cherry Liu

price hikes, we believe these concerns are overstated, as Huaqin’s share gains (86-21) 6106-6200

and improving mix should offset soft end-demand and drive earnings growth ye.liu@jpmorgan.com

in 2026. More importantly, we expect the datacenter business to become the SAC Registration Number: S1730521090001

key earnings catalyst from 2H26, as rack-level AI programs move into volume J.P. Morgan Securities (China) Company Limited

production. Amid the ongoing transition toward rack-scale AI infrastructure in

Key Changes (FYE Dec)China, we believe Huaqin’s full-stack capabilities across AI/general server and

high-speed switches should position the company as a key beneficiary and Prev Cur Δ

Revenue - 26E (Rmb 204,670 215,054 5.1%support valuation re-rate. Reiterate OW with extended Jun-27 PT of Rmb112. mn)

Revenue - 27E (Rmb 241,182 269,779 11.9%

• Solid core operations and investment gains drove the beat in 2Q26. mn)

Huaqin booked a net profit of Rmb1.9bn (mid-point) with 83%/81% Net income - 26E (Rmb 5,195 5,737 10.4%

yoy/qoq growth in 2Q26, beating JPMe by 65% on investment gains. Its mn)

Net income - 27E (Rmb 6,799 7,087 4.2%