Shares of Huaqin Technology (03296) have risen more than 5% during the trading session. At the time of writing, the stock is up 3.54% to HK$81.85, with a turnover of HK$81.57 million.

Key Growth Drivers Identified

A research report highlights that, driven by the broader AI industry trend, Huaqin Technology's AI servers, AI PCs, and hyper-node products all possess clear growth momentum. This is expected to sustain a high-speed growth trajectory for its computing and data center business segments.

Financial Projections for Data Center Business

The report estimates that the company's data center business revenue exceeded RMB 20 billion in 2024, doubled to over RMB 40 billion last year, and is projected to potentially reach RMB 60 billion this year. Within this segment, revenue from AI servers and hyper-node products could account for approximately 70%.

Long-Term Growth Outlook

The analysis anticipates that from 2025 to 2028, the overall compound annual growth rate for the computing and data center business revenue could surpass 25%.

Broader Revenue and Margin Expectations

Separate forecasts project that Huaqin Technology could achieve a revenue compound annual growth rate of 32% from 2025 to 2027. This growth is seen as being supported by the company's end-to-end R&D capabilities spanning hardware, software, mechanical engineering, operational efficiency, supply chain management, and advanced manufacturing. Furthermore, the ongoing upgrade of its product portfolio is expected to contribute to an improvement in gross margins.