华鑫证券：首次覆盖宏发股份给予买入评级

Core Viewpoint - The report highlights the strong performance and growth potential of Hongfa Technology Co., Ltd. (宏发股份), emphasizing its leadership in the relay market and the robust growth of its diversified product lines, leading to a "buy" rating for the stock [1][5]. Financial Performance - In 2024, the company achieved a revenue of 14.102 billion yuan, representing a year-on-year growth of 9.07% - The net profit attributable to shareholders reached 1.631 billion yuan, up 17.09% year-on-year - The net profit after deducting non-recurring gains and losses was 1.515 billion yuan, an increase of 13.89% year-on-year [2]. Investment Highlights - The company’s relay products generated revenue of 12.701 billion yuan in 2024, with a year-on-year growth of 8.95% and a gross margin of 37.99%, slightly down by 0.64 percentage points - The overall market share increased by 1.7 percentage points, maintaining the global leading position - Specific segments include: - High-voltage direct current relays with a 40% market share - Automotive relays benefiting from the demand in the new energy vehicle sector, with a market share increase of 3.1 percentage points to 23.1% - Power relays maintaining a 57.1% market share - Signal relays expanding into new markets, increasing market share by 4.4 percentage points [3][4]. Product Development - The company is focusing on a "5+" product strategy, with significant growth in various new product categories: - Low-voltage electrical appliances with new production lines - Connectors with a 28% increase in shipment value - Capacitors with a 14% increase in shipment value - Fuses with over 30 new products developed - Current sensors with a shipment value exceeding 100 million yuan, growing by 81% [4]. Earnings Forecast - Projected revenues for 2025, 2026, and 2027 are 16.296 billion yuan, 18.843 billion yuan, and 21.805 billion yuan, respectively - Earnings per share (EPS) are forecasted to be 1.76 yuan, 2.07 yuan, and 2.43 yuan for the same years - The current stock price corresponds to price-to-earnings (PE) ratios of 20.9, 17.8, and 15.2 times for 2025, 2026, and 2027 [5].