Grace(SH:603256) Zheng Quan Shi Bao Wang·2024-10-31 17:49Core Viewpoint - The consumer electronics sector in the A-share market has shown significant growth in Q3 2024, driven by market recovery, new product launches, and increasing domestic substitution rates in the supply chain [1] Industry Summary - The electronic materials industry has benefited from various government policies aimed at boosting demand, including equipment upgrades and recycling initiatives [1] - The demand for upstream electronic materials has surged, particularly for printed circuit boards (PCBs), which are essential for electronic devices [1] - PCB manufacturers are expanding production capacity, indicating a positive outlook for the electronic industry [3] Company Summary - Honghe Technology (宏和科技) reported a revenue of 619 million yuan for the first three quarters of 2024, a year-on-year increase of 24.55%, and achieved a net profit of 7.73 million yuan, reversing a loss from the previous year [1][2] - The company has seen a significant increase in the production and sales of electronic-grade glass fiber cloth, with production reaching 14.51 million meters and sales at 15.02 million meters, representing growth rates of 47.43% and 16.16% respectively [2] - Honghe Technology is focusing on high-end markets and has established strong relationships with major PCB manufacturers, enhancing its competitive edge [4][6] - The company has implemented cost-reduction measures and has achieved a significant decrease in raw material costs, with the average price of electronic-grade glass fiber yarn dropping from 26 yuan/kg in 2022 to 17.88 yuan/kg in 2024 [7] - The company is well-positioned to benefit from the increasing demand for high-end electronic materials, particularly in the context of the growing smartphone and automotive electronics markets [5][8]