KFMI(SZ:300666) Dongxing Securities·2024-09-02 05:06Investment Rating - The report maintains a "Recommended" rating for Jiangfeng Electronics (300666.SZ) [1][2] Core Views - Jiangfeng Electronics reported a revenue of 1.627 billion yuan for the first half of 2024, representing a year-on-year growth of 35.91%. The net profit attributable to shareholders was 161 million yuan, an increase of 5.32% year-on-year [1][2] - The company's revenue growth exceeded expectations, driven by the continuous increase in sales of ultra-pure target materials and significant growth in precision component sales [1][2] - The semiconductor market is recovering, and the company is increasing inventory in response to demand, leading to a net cash flow from operating activities of -129 million yuan, a decline of 213.54% year-on-year [1][2] Financial Performance Summary - Revenue (in million yuan) for 2022A was 2,323.88, with a growth rate of 45.80%. For 2023A, it was 2,601.61, with a growth rate of 11.89%. The forecast for 2024E is 3,312.11, with a growth rate of 27.31% [2][3] - Net profit (in million yuan) for 2022A was 265.20, with a growth rate of 148.72%. For 2023A, it was 255.47, with a decline of 3.67%. The forecast for 2024E is 383.97, with a growth rate of 50.30% [2][3] - The company's EPS is projected to be 1.45 yuan for 2024E, 1.86 yuan for 2025E, and 2.36 yuan for 2026E [1][2] Strategic Developments - Jiangfeng Electronics is actively promoting its strategic layout in the semiconductor precision components sector, with multiple production bases completed and new product lines rapidly expanding [1][2] - The company is focusing on enhancing its R&D capabilities to ensure the safety of the domestic semiconductor supply chain and is expected to accelerate the localization process of precision components [1][2] Market Outlook - The global semiconductor precision component market is expected to reach 395.6 billion yuan in 2024, with the Chinese market projected to grow faster than the global market, reaching 125.3 billion yuan [1][2] - The company aims to leverage its long-term technological capabilities and customer understanding in the ultra-pure target material field to expand into the precision component sector [1][2]