Hongfa(SH:600885) Minsheng Securities·2024-08-09 08:30Investment Rating - The report maintains a "Recommended" rating for the company [2][6]. Core Views - The company reported strong performance in H1 2024, with revenue of 7.231 billion yuan, a year-on-year increase of 8.9%, and a net profit attributable to shareholders of 844 million yuan, up 15.3% year-on-year [1]. - The core relay products continue to see rapid new product iterations, solidifying market share, with 193 new projects initiated in H1 2024, a 16% increase year-on-year [1]. - The company is benefiting from multiple downstream sectors, including consumer electronics, industrial equipment, power energy, and automotive transportation, with significant growth in demand and market share [1]. - The company is implementing its "75+" strategy, focusing on high-quality development of its core relay business while also promoting the growth of five new product categories [1]. Financial Performance - In H1 2024, the company achieved a gross margin of 34.8%, a slight decrease of 0.23 percentage points year-on-year, while the net profit margin improved by 0.97 percentage points to 15.3% [1]. - The company’s revenue projections for 2024-2026 are 14.999 billion yuan, 17.406 billion yuan, and 20.140 billion yuan, with growth rates of 16.0%, 16.0%, and 15.7% respectively [2][6]. - The net profit attributable to shareholders for the same period is projected to be 1.609 billion yuan, 1.879 billion yuan, and 2.195 billion yuan, with growth rates of 15.5%, 16.8%, and 16.8% respectively [2][6].