Hongfa(SH:600885) Chang Jiang Shang Bao·2025-07-31 00:02Core Insights - The company, Hongfa Technology (宏发股份), reported a strong performance in the first half of 2025, achieving a revenue of 8.347 billion yuan, a year-on-year increase of 15.43%, and a net profit of 964 million yuan, up 14.19% [1][2] - The company has maintained stable growth since its listing in 2012, with a compound annual growth rate (CAGR) of over 15% in net profit over the past 12 years [2] - Hongfa Technology continues to implement its "75+" strategy, focusing on expanding its market share in the relay sector while developing new product categories [3][5] Financial Performance - In the first half of 2025, the company achieved a net profit of 964 million yuan, with a non-recurring net profit of 927 million yuan, reflecting a growth of 17.85% [2] - The company's revenue from relay products reached 7.614 billion yuan, marking a 17.26% increase year-on-year [1][2] - The company reported a per capita sales return of 654,000 yuan, an increase of 8.9% [2] Product Development - Hongfa Technology has launched 462 new product development projects in the first half of 2025, with a completion rate of 90%, and nearly 45% of these projects focused on the "5+" product categories [2][3] - The company’s film capacitor shipments increased by 31%, with applications expanding in home appliances, new energy, power electronics, and automotive sectors [3] - The company’s current sensor shipments grew by 36%, despite some challenges in the overseas market [4] Market Position and Strategy - As a leading global relay manufacturer, Hongfa Technology has maintained the largest market share in the electromagnetic relay sector for 40 years [1] - The company is focusing on the new energy and automotive industries to capture growth opportunities amid macroeconomic uncertainties [2][6] - In the automotive sector, the company’s low-voltage automotive relay business has seen rapid growth, benefiting from the domestic market and the rise of independent brands [7] Industry Trends - The demand for industrial relays is recovering as major clients deplete their inventories, indicating a positive trend for the second half of 2025 [6][7] - The company’s products related to new energy, particularly in wind, solar, and storage sectors, have experienced significant growth due to favorable market conditions [6][7]