Goldman Sachs has issued a research report, initiating coverage on HUAQIN (H-shares: 03296) with a Buy rating and a target price of HK$127.76.

The firm states that HUAQIN is the world's leading original design manufacturer for consumer electronics based on projected 2024 shipment volumes.

It anticipates the company's growth will be driven by expansion in AI data centers and its traditional business segments.

Goldman Sachs forecasts that HUAQIN will achieve a compound annual growth rate of 32% in revenue from 2025 to 2027.

This growth is expected to be supported by the company's end-to-end research and development capabilities, spanning hardware, software, mechanical engineering, operational efficiency, supply chain management, and advanced manufacturing.

Furthermore, an upgrade in its product mix is projected to contribute to an improvement in gross margins.