Huahan’s orders on hand exceed 280 billion yuan, aiming for higher profits and growth in 2027

[Reporter Fang Weijie/Taipei Report] Zhu Fuquan, chairman of industrial computer factory Huahan (6414), pointed out at a press conference today that as the application of physical AI (Physical AI) continues to be implemented, driving demand growth in areas such as smart manufacturing, energy infrastructure, smart transportation, and autonomous robots, the group currently has more than 280 billion yuan in orders on hand, and the benefits of deepening integration with Germany's Kontron are gradually fermenting. It is expected that overall revenue and profits will be highly likely to grow next year.

Huahan's third-quarter consolidated revenue was 48.58 billion yuan, an annual increase of 44.5%; gross profit margin was 19.5%, a quarterly increase of 0.2 percentage points; operating net profit was 2.97 billion yuan, an annual increase of 80%; net profit attributable to owners of the parent company was 1.21 billion yuan, and earnings per share was 7.81 yuan, an annual increase of 27.5%. The company is optimistic that the overall operating scale will continue to expand, driving a simultaneous improvement in profit performance.

Looking forward to the future, Zhu Fuquan said that the group's orders on hand have exceeded 280 billion yuan, which will become an important driving force for the continued growth of the three major businesses. Among them, the high-margin smart software and solutions business will drive an improvement in the overall profit structure; the smart factory and factory affairs business will benefit from the demand for semiconductor factory services, driving up revenue from high-tech equipment and automation systems; the industrial Internet of Things business will continue to drive revenue growth as demand for physical AI expands.

In terms of physical AI layout, Huahan continues to promote AI technology from data analysis to actual productivity improvement through its own ESaaS platform software and hardware integration model. The application scope covers global smart manufacturing, smart finance, retail and edge computing systems and other scenarios. The increase in the penetration rate of smart retail in Europe and the United States continues to be reflected in revenue performance.

At the same time, Huahan is also actively developing new businesses such as energy installations, equipment and building smart management, ESG energy saving and carbon reduction, and AI technology applications. It is also expanding smart Internet of Things (AIoT) application scenarios through strategic alliances and mergers and acquisitions to provide customers with high value-added digital transformation solutions.

As for overseas layout and group integration, Zhu Fuquan said that after Huahan increases its shareholding in Kontron to 49.4%, the two parties will further deepen the integration. It is expected to begin to generate revenue and cost synergies in 2027, and cooperate with product portfolio optimization and the development of high-margin solutions to promote structural profit growth.

Zhu Fuquan emphasized that in addition to pursuing operational growth, Huahan will also continue to improve the return on equity (ROE) by improving operating efficiency, asset utilization efficiency and capital structure management, aiming to reach the ROE milestone of 20% in 2030, and aiming for an annualized total shareholder return (TSR) of 30% to strengthen long-term shareholder value.