Huaqin Co.,Ltd. (3296.HK): From Leading ODM Player to AI Compute Powerhouse

We believe Huaqin is well positioned to leverage its leading technology hardware ODM franchise to capture new growth opportunities in AI compute, AIoT hardware, auto electronics, and robotics. We initiate at OW with a HK$70 price target. Global leading technology hardware ODM: With a global shipment market share of >20% and revenue scale of Rmb171bn (US$24bn) in 2025, Huaqin aims to achieve continuous growth across smartphones, laptops, data center infrastructure businesses, auto components, and robotics businesses. Under its 3+N+3 strategy, the company targets a ~15% revenue CAGR, 2026-29. Key beneficiary of China SuperPoD boom: Huaqin benefits from expanding scale in its core computing and data center businesses, where segment revenue increased significantly, to Rmb75.5bn in 2025, driven by AI servers that account for >70% of data center sales. As a core domestic infrastructure provider, the company is directly leveraged to surging cloud service provider capex and anticipated mass pr