Hongfa(600885) 东吴证券·2024-11-01 17:32Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's performance in Q1-Q3 2024 met market expectations, with revenue increasing by 10% year-on-year to 10.87 billion yuan and net profit rising by 15% year-on-year to 1.27 billion yuan [2] - The recovery in new energy and signal products exceeded expectations, with anticipated growth rates of over 50% and 30% respectively in Q3 [3] - The electric vehicle and fuel vehicle segments are expected to grow by approximately 20% in Q3, supported by strong domestic demand and a recovery in the European market [3] - Short-term pressure is anticipated in the power, industrial, and low-voltage electrical sectors, but gradual recovery is expected [4] - The company is projected to achieve net profits of 1.68 billion yuan in 2024, with a corresponding P/E ratio of 25x, leading to a target price of 40.3 yuan [4] Financial Forecasts and Valuation - Total revenue is forecasted to reach 14.70 billion yuan in 2024, with a year-on-year growth of 13.66% [10] - The net profit attributable to the parent company is expected to be 1.68 billion yuan in 2024, reflecting a year-on-year increase of 20.53% [10] - The report outlines a steady increase in EPS from 1.34 yuan in 2023 to 1.61 yuan in 2024 [10] - The company maintains a strong market position, with a projected P/E ratio decreasing from 25.77 in 2023 to 19.19 in 2024 [1][4]