KFMI(SZ:300666) Guotai Junan Securities·2024-07-17 12:31Investment Rating - The report maintains an "Accumulate" rating for Jiangfeng Electronics (300666) with a target price raised to 79.80 CNY from the previous 74.63 CNY [4][5]. Core Views - The company is expected to achieve a non-net profit of 162 to 178 million CNY in the first half of 2024, representing a year-on-year increase of 66.03% to 81.67% [4][5]. - Jiangfeng Electronics is a leading manufacturer of sputtering targets, with major clients including TSMC, UMC, SMIC, SK Hynix, Huahong Grace, and BOE [5]. - The company has seen a compound annual growth rate (CAGR) of 76% in component revenue over the past three years, driven by its strategic expansion into core semiconductor components [5]. Financial Summary - The company's projected revenue for 2024 is 3,380 million CNY, reflecting a 29.9% increase from 2023 [15]. - The net profit attributable to the parent company is expected to reach 354 million CNY in 2024, a 38.5% increase from 2023 [15]. - The earnings per share (EPS) forecast for 2024 is 1.33 CNY, up from the previous estimate of 1.27 CNY [5][15]. Performance Trends - The stock has shown a 3% increase over the past month, a 25% increase over the past three months, but a 19% decrease over the past year [3]. - The company’s net asset value per share is reported at 15.87 CNY, with a current price-to-book ratio of 3.3 [2]. Market Position - Jiangfeng Electronics is positioned to benefit from the increasing domestic production rates and expansion of downstream clients, indicating significant growth potential in the semiconductor sector [5]. - The company has established production bases in Ningbo, Shanghai, and Shenyang, enhancing its capacity to meet rising demand for semiconductor components [5].