Hongfa(600885) 证券之星· Zheng Quan Zhi Xing·2025-05-26 10:24Core Viewpoint - Hongfa Technology Co., Ltd. maintains a stable credit rating due to its strong market position and operational performance, despite facing challenges such as intense competition and funding pressures [1][3][4]. Company Overview - Hongfa Technology is the largest relay manufacturer in China, holding the top global market share in relay products, with a revenue of 127.01 billion yuan in 2024, reflecting an 8.96% increase year-on-year [8][13]. - The company operates multiple production bases domestically and has established factories in Indonesia and Germany, with ongoing construction projects requiring significant investment [11][12]. Financial Performance - The company's EBITDA for 2024 reached 36.07 billion yuan, a 9.98% increase from the previous year, indicating strong profitability [13]. - The total assets as of the end of 2024 were 60.39 billion yuan, with total liabilities of 22.81 billion yuan, resulting in an asset-liability ratio of approximately 37.8% [3][4]. Market Position - The company’s relay products account for about 90% of its total revenue, with significant demand driven by the recovery in the market and the growth of the new energy sector [8][9]. - The global market share for the company's relay products is 23.10%, with specific segments like power relays and automotive relays holding shares of 31.70% and 23.00%, respectively [12]. Operational Efficiency - The company has a production capacity of 39.74 billion relays per year, with a production output of 32.44 billion relays in 2024, achieving a capacity utilization rate of 81.63% [10][11]. - The average inventory turnover period is extended due to high overseas sales and shipping delays, with a cash conversion cycle of approximately 204.93 days [15][16]. Industry Context - The electrical equipment industry is experiencing robust growth driven by investments in clean energy and infrastructure, with significant government spending on grid upgrades and new energy projects [5][7]. - The competitive landscape is intensifying, particularly in traditional electrical equipment sectors, while leading companies are focusing on technological upgrades and product diversification to maintain market share [7][8].