Hongfa(SH:600885) Xin Lang Cai Jing·2025-07-30 06:19Core Viewpoint - The report from Minsheng Securities highlights the strong financial performance of Hongfa Technology in the first half of 2025, with a notable increase in net profit and improvements in profitability and operational efficiency [1] Financial Performance - In H1 2025, the company's net profit attributable to shareholders reached 964 million yuan, representing a year-on-year increase of 14.19% [1] - For Q2 2025, the net profit was 553 million yuan, showing a year-on-year growth of 13.25% [1] - The gross margin for Q2 2025 was 34.67%, up by 0.03 percentage points year-on-year, while the net profit margin was 16.82%, an increase of 0.01 percentage points year-on-year [1] Operational Efficiency - The company's operational efficiency indicator, measured as sales revenue per employee, was 654,000 yuan in H1 2025, reflecting a year-on-year growth of 8.9% [1] Research and Development - Hongfa Technology completed 462 new product development projects in H1 2025, achieving a completion rate of 90%, with nearly 45% of these projects classified as "5+" product development [1] - The company filed 587 patent applications in the first half of 2025, marking a year-on-year increase of 10.55% [1] Market Position and Valuation - Hongfa Technology is recognized as a global leader in the relay industry, with strong momentum in the development of new product categories [1] - As of July 29, the company's stock price corresponds to a price-to-earnings ratio (PE) of 18x for 2025, 15x for 2026, and 13x for 2027 [1] - The report maintains a "recommend" rating for the company [1]