Anfu Technology(603031) 财通证券·2024-11-03 14:23Investment Rating - The report assigns an "Accumulate" rating for the company for the first time [1]. Core Viewpoints - The company has undergone a strategic transformation, acquiring a 51% stake in its parent company, which has led to a shift in its main business focus to alkaline batteries. This transition has resulted in a steady increase in revenue, with a reported revenue of 3.594 billion yuan in the first three quarters of 2024, reflecting a year-on-year growth of 7.15%. The company has also turned profitable, achieving a gross margin of 47% in 2022, up by 24 percentage points, and a net profit margin of 15%. The net profit attributable to shareholders reached 150 million yuan in the first three quarters of 2024, a year-on-year increase of 46% [2][4]. Summary by Sections Strategic Layout - The company has successfully transformed into the consumer battery sector, focusing on alkaline batteries as its core product. The acquisition of a 51% stake in the parent company has solidified its position in the market [10][12]. - The management team is experienced and stable, with key leaders having long tenures and relevant expertise, which supports the company's capital operations [12]. - The company has successfully increased its control over core assets, with plans to raise its stake in the parent company from 26% to 43% [13][15]. Market Demand and Product Advantages - The demand for alkaline batteries remains robust, with a significant market share in the retail sector, capturing over 80% in China. The alkaline battery market is characterized by low self-discharge rates and competitive pricing, making it difficult to replace [3][41]. - The company benefits from a diverse product matrix, including various battery types, which enhances its competitive edge [3][10]. Financial Performance and Forecast - The company forecasts revenues of 4.736 billion yuan, 5.312 billion yuan, and 5.719 billion yuan for 2024, 2025, and 2026, respectively, with net profits projected at 184 million yuan, 254 million yuan, and 283 million yuan for the same years. The corresponding price-to-earnings ratios are expected to be 32.92, 23.67, and 21.31 times [4][5]. - The gross margin has consistently remained above 45%, reaching 48.51% in the first three quarters of 2024, significantly higher than the industry average of 22% [3][4].