Investment Rating - The report initiates coverage with a "Buy" rating for Hongfa Technology Co., Ltd. (600885) [31] Core Views - Hongfa Technology is positioned as a leading company in the relay industry, benefiting from its scale production capabilities and expected market share growth due to industry expansion [3][6] - The company has successfully established its first overseas factory in Indonesia, achieving significant sales growth and profitability [30] - The demand for relays is expected to rise due to the expansion of downstream industries, particularly in home appliances and automotive sectors, which together account for over 50% of relay applications [23][54] Summary by Sections 1. Company Overview - Hongfa Technology has a clear ownership structure and strategic layout, with major shareholders holding significant stakes [10] - The company has established R&D and production bases across various regions in China and has developed a marketing network in the Americas, Europe, and Southeast Asia [10] 2. Relay Business Growth - The relay business is experiencing rapid growth, with a projected increase in profitability [13] - The company holds a 21.6% global market share in the relay sector, maintaining its position as the market leader [29][68] 3. Downstream Demand and Market Trends - The relay market is supported by strong demand from various sectors, including home appliances, automotive, and renewable energy [23][50] - The automotive sector, particularly for electric vehicles, is driving demand for high-voltage relays, with the company’s products meeting the necessary specifications [28][54] 4. Financial Performance and Projections - Revenue is expected to grow from 129.30 billion RMB in 2023 to 180.97 billion RMB by 2026, with a steady increase in gross profit margins [31][81] - The company’s net profit is projected to reach 20.87 billion RMB by 2026, with corresponding PE ratios decreasing over the years [31][81] 5. Investment Recommendations - The report emphasizes that the revenue growth is primarily driven by relay products, highlighting the company's strong market position and growth potential [80]

本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 北京德皓国际会计师事务所（特殊普通合伙）成立日期为 2008 年 12 月 8 日，注册地址为北京市西城区阜成门外大街 31 号 5 层 519A，执行事务合伙人为 杨雄。 更名后的事务所各项执业资格、服务团队、单位地址、联系电话等均无 变化，主体资格和法律关系不变。原"北京大华国际会计师事务所（特殊普通合 伙）"各项业务、权利和义务由"北京德皓国际会计师事务所（特殊普通合伙）" 继续承担，原有的业务关系及已签订的合同继续履行。 | 证券代码：600885 | 证券简称：宏发股份 | 编 | 号：临 | 2024—072 | | --- | --- | --- | --- | --- | | 债券代码：110082 | 债券简称：宏发转债 | | | | 本次变更仅为名称变更，不涉及主体资格变更，不属于更换或重新聘任会计 师事务所事项。 宏发科技股份有限公司 关于会计师事务所更名的公告 特此公告。 宏发科技股份有限公司（以下简称"公司"）于近日收到 2024 年度财务报表 和内部 ...

| 证券代码：600885 | 证券简称：宏发股份 | 编 | 号：临 | 2024—071 | | --- | --- | --- | --- | --- | | 债券代码：110082 | 债券简称：宏发转债 | | | | 宏发科技股份有限公司 关于控股股东部分股份解押再质押的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示: 截止本公告日，公司控股股东有格创业投资有限公司（以下简称"有格投资"） 持有宏发科技股份有限公司（以下简称"公司"或"本公司"）股份数量为 285,154,494 股，占本公司总股本的 27.35%。有格投资持有本公司股份累计 质押数量（含本次）为 69,238,000 股，占其持有的本公司股份的 24.28%， 占本公司总股本的 6.64%。 宏发科技股份有限公司（以下简称"公司"或"本公司"）于 2024 年 12 月 26 日接到本公司控股股东有格创业投资有限公司（以下简称"有格投资"）通知， 有格投资将其原质押给中国银河证券股份有限公司本公司无限售条件流通股 1,500, ...

债券代码：110082 债券简称：宏发转债 股票代码：600885 公司简称：宏发股份 公告编号：临 2024-070 宏发科技股份有限公司 关于 2025 年度日常关联交易预计的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗漏，并 对其内容的真实性、准确性和完整性承担个别及连带责任。 重要内容提示： | 向关联人提供劳 | 厦门彼格科技有 | 检测费、培训费 | 市场价格 | 2 | 5.5 | 2 | | --- | --- | --- | --- | --- | --- | --- | | 务 | 限公司 | 等 | | | | | | 其他 | 厦门彼格科技有 | 房租、水电费等 | 市场价格 | 1 | 0.2 | 1 | | | 限公司 | | | | | | | 其他 | 福建鼎悦体育发 | 其他 | 市场价格 | 0 | 4 | 12 | | | 展有限公司 | | | | | | | 合计： | | | | 4980 | 3071.70 | 4218 | 公司董事会对日常关联交易实际发生情况与预计存在较大差异的说明: 公司预计的日常关联交易额度是依据公司业 ...

| 股票代码：600885 | 公司简称：宏发股份 | 公告编号：临 2024-069 | | --- | --- | --- | | 转债代码：110082 | 转债简称：宏发转债 | | 宏发科技股份有限公司 第十一届监事会第三次会议决议公告 2024 年 12 月 14 日 二、监事会会议审议情况 1、审议通过了《关于 2025 年度日常关联交易预计的议案》 2025 年公司与关联人发生的日常关联交易是公司日常经营所必需的，日常 关联交易计划决策程序合法有效，交易定价公允合理，充分保证了公司的利益， 不存在损害上市公司和股东利益的情形。 表决结果：3 票同意，0 票反对，0 票弃权。 特此公告。 宏发科技股份有限公司监事会 本公司监事会及全体监事保证本公告内容不存在任何虚假 记载、误导性陈述或者重大遗漏，并对其内容的真实性、准确性 和完整性承担法律责任。 一、监事会会议召开情况 宏发科技股份有限公司（以下简称"公司"）于 2024 年 12 月 6 日以电子邮 件和电话通知的方式向公司全体监事发出召开第十一届监事会第三次会议的通 知，会议于 2024 年 12 月 13 日上午在公司会议室以通迅方式召开 ...

1、审议通过了《关于 2025 年度日常关联交易预计的议案》 具体内容详见公司同日披露《宏发股份：关于 2025 年度日常关联交易预计 的公告》。 | 股票代码：600885 | 公司简称：宏发股份 | 公告编号：临 | 2024-068 | | --- | --- | --- | --- | | 债券代码：110082 | 债券简称：宏发转债 | | | 宏发科技股份有限公司 第十一届董事会第五次会议决议公告 本公司董事会及全体董事保证本公告内容不存在任何虚假 记载、误导性陈述或者重大遗漏，并对其内容的真实性、准确性 和完整性承担法律责任。 一、董事会会议召开情况 宏发科技股份有限公司（以下简称"公司"）于 2024 年 12 月 6 日以电子邮 件和电话通知的方式向公司全体董事、监事和高级管理人员发出召开第十一届董 事会第五次会议的通知，会议于 2024 年 12 月 13 日以通迅方式在公司会议室召 开。本次会议应到董事 9 名，实到董事 9 名，公司监事和高级管理人员列席会议。 董事推选郭满金董事主持会议。会议的召集和召开符合《公司法》、《证券法》及 《公司章程》的有关规定，会议决议合法有效。 二、董 ...

Investment Rating - The report maintains a "Buy" rating for the company [7][8]. Core Insights - The company reported a revenue of 10.87 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 9.97%. The net profit attributable to the parent company was 1.269 billion yuan, up 15.07% year-on-year [5][6]. - In Q3 alone, the company achieved a revenue of 3.638 billion yuan, with a year-on-year increase of 12.19%, and a net profit of 425 million yuan, reflecting a growth of 14.55% [5][6]. - The report highlights that the revenue growth in Q3 is indicative of improving downstream demand, particularly in the power relay segment, which is expected to see accelerated growth due to the recovery in the new energy sector [6][7]. Financial Performance - The gross profit margin for the first three quarters was 35.17%, a slight decrease of 0.42 percentage points year-on-year, while the Q3 gross profit margin was 35.95%, down 0.82 percentage points [6]. - The operating expense ratio for the first three quarters was 18.14%, an increase of 0.86 percentage points year-on-year, with a Q3 expense ratio of 18.74%, which decreased by 0.97 percentage points due to a decline in financial expense ratio [6][7]. - The company's asset-liability ratio at the end of Q3 was 40.7%, an increase of 1.96 percentage points from the previous quarter [7]. Future Outlook - The report anticipates that the company will continue to experience robust growth driven by the recovery of downstream demand and ongoing cost reduction efforts. The projected net profit for 2024 is 1.63 billion yuan, corresponding to a PE ratio of approximately 20.4 times [7][8].

1 证券代码：600885 证券简称：宏发股份 宏发科技股份有限公司投资者关系活动记录表 | --- | --- | |---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Investment Rating - The report maintains an "Accumulate" rating for the company [2] Core Views - The company's Q3 2024 performance met expectations, with a gradual improvement in its overseas layout as the German factory has been completed and is set to begin production in 2025 [2] - The target price has been raised to 41.61 CNY from the previous 35.36 CNY, reflecting a positive outlook on the company's growth prospects [2][7] Financial Performance Summary - In Q3 2024, the company achieved a revenue of 3.638 billion CNY, representing a year-on-year increase of 12.19% and a quarter-on-quarter decrease of 3.71% [7] - The net profit attributable to shareholders for Q3 2024 was 425 million CNY, up 14.55% year-on-year but down 12.91% quarter-on-quarter [7] - For the first three quarters of 2024, the company reported a total revenue of 10.869 billion CNY, a 9.97% increase year-on-year, and a net profit of 1.269 billion CNY, up 15.07% year-on-year [7] Business Strategy and Market Position - The company is a leading player in the global relay market, holding a market share of 21.3% in 2023, an increase of 7.2 percentage points since 2019 [7] - The company is expanding its product categories, particularly in low-voltage electrical products, to create a new growth curve while maintaining its leadership in relay products [7] - The overseas layout has been enhanced with the completion of the German factory and significant growth in sales and profits from the Indonesian market, which saw a 157% increase in sales and an 89% increase in net profit year-on-year [7] Financial Forecast - The company’s projected earnings per share (EPS) for 2024, 2025, and 2026 are 1.56 CNY, 1.79 CNY, and 2.03 CNY respectively, reflecting adjustments from previous estimates [8] - Revenue is expected to grow from 14.62 billion CNY in 2024 to 18.40 billion CNY in 2026, with corresponding net profits increasing from 1.629 billion CNY to 2.119 billion CNY over the same period [8]

Summary of the Conference Call for Dongwu Telecom Hongfa Co., Ltd. Q3 2024 Earnings Company Overview - **Company**: Dongwu Telecom Hongfa Co., Ltd. - **Industry**: Telecommunications and Electrical Equipment Key Points and Arguments Financial Performance - The company reported stable financial performance with slight revenue decline in Q3 compared to Q2, approximately over 100 million [2] - Gross profit margin improved by over 1 percentage point, reaching close to 36% in Q3 [5] - Overall revenue and profit reflect a steady operational trend, with Q3 showing a slight decrease in revenue but an increase in gross margin [2][5] Market Dynamics - The demand in the electric vehicle (EV) sector showed a slight decline in Q3, attributed to seasonal factors, with expectations for recovery in Q4 due to upcoming demand from events like Double Eleven [2] - The signal infrastructure segment experienced significant growth due to new applications in renewable energy and traditional communication sectors [3] - The power energy sector remains stable with good growth, particularly in products related to inverters, with monthly averages exceeding 90 million [3][4] Strategic Developments - The company is expanding its global manufacturing footprint, with a factory in Texas nearing completion and automation lines being installed [5] - A proposal for a downward adjustment of the conversion price for bonds was discussed, aimed at alleviating financial pressure and stabilizing long-term operations [6] Industry Trends - The automotive market is performing well, with expectations for a significant increase in global market share [4] - The high-voltage direct current (HVDC) segment is projected to grow by over 20%, with notable demand from both domestic and international markets [11] - The company is optimistic about the recovery of the European market, anticipating a 60-70% increase in consumption for certain products in 2024 [14] Challenges and Risks - The company acknowledged potential short-term fluctuations in demand due to macroeconomic factors and geopolitical tensions [22] - Concerns were raised about the impact of rising raw material costs on profitability, with strategies in place to manage inventory and production levels [23] Future Outlook - The company expects stable growth in Q4, with a maintained order visibility of approximately 30-35 billion [21] - There is a focus on optimizing customer and product coverage to enhance market positioning [9] - The management is cautious yet optimistic about the long-term growth trajectory, particularly in the automotive and renewable energy sectors [29] Additional Insights - The company has successfully diversified its customer base, reducing reliance on major clients like Huawei [8] - The introduction of new products and technologies is seen as a key driver for future growth, particularly in the EV and smart home sectors [32] Conclusion Dongwu Telecom Hongfa Co., Ltd. demonstrated resilience in its Q3 performance amidst market fluctuations, with strategic expansions and a focus on innovation positioning the company for future growth in the telecommunications and electrical equipment industry.