Hongfa(SH:600885) Chang Jiang Shang Bao·2026-01-13 23:46Core Viewpoint - Hongfa Technology Co., Ltd. (宏发股份) is expanding its international presence by establishing a joint venture in Vietnam with VinFast, aiming to enhance its global manufacturing capabilities and brand influence [2][4]. Investment Details - The joint venture, named Hongfa VinFast Electronics Co., Ltd. (tentative), will have a total investment of 1,350 billion Vietnamese Dong, approximately 37.67 million RMB, with Hongfa contributing 1,080 billion Dong (about 30.13 million RMB), representing 80% of the total investment [4][3]. - The funds will be utilized for the construction and operation of the joint venture, including factory leasing, equipment procurement, and working capital [4]. Strategic Goals - The establishment of the joint venture aligns with VinFast's strategy to localize its supply chain and supports Hongfa's plans to expand its market presence in Vietnam [4][5]. - The joint venture will initially focus on local production of body control modules and remote keyless entry systems, with plans to gradually incorporate more products into its production system [4][5]. Financial Performance - For the first three quarters of 2025, Hongfa reported revenues of 12.914 billion RMB, an 18.82% increase year-on-year, and a net profit of 1.470 billion RMB, up 15.78% [6][5]. - The company has maintained a stable financial performance since its listing, with a compound annual growth rate of 15.71% in net profit over the past 12 years [6]. Market Position - Hongfa is recognized as a global leader in the relay manufacturing industry, holding the largest market share, surpassing competitors like Tyco Electronics and Omron [8]. - The company is also diversifying its product offerings beyond relays to include capacitors, current sensors, and other components, which are expected to see significant growth [7][5]. Future Outlook - Hongfa aims to enhance its overseas production capacity, with ongoing projects in Indonesia and Germany, and anticipates continued growth in international markets [8]. - The company is committed to implementing its "75+" strategy, focusing on high-quality development of its core relay business while promoting the growth of new product categories [7].