Hongfa(SH:600885) Ge Long Hui A P P·2025-07-30 06:25Core Viewpoint - The report from Minsheng Securities highlights that Hongfa Technology's net profit attributable to shareholders for the first half of 2025 reached 964 million yuan, representing a year-on-year increase of 14.19% [1] Financial Performance - In Q1 2025, the company's net profit attributable to shareholders was 553 million yuan, showing a year-on-year increase of 13.25% [1] - For Q2 2025, the company achieved a gross margin of 34.67%, which is an increase of 0.03 percentage points year-on-year [1] - The net profit margin for Q2 2025 was 16.82%, reflecting a year-on-year increase of 0.01 percentage points [1] Operational Efficiency - In the first half of 2025, the company's sales collection per employee was 654,000 yuan, marking an 8.9% year-on-year growth [1] Research and Development - The company completed 462 new product development projects, achieving a completion rate of 90%, with nearly 45% of these projects being "5+" product developments [1] - There was a coordinated advancement in product technological innovation and intellectual property layout, with 587 patent applications filed in the first half of 2025, 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 closing 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 "recommended" rating for the company [1]