Anfu Technology(603031) 国盛证券·2024-12-01 06:23Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 33.81 CNY based on a 26x P/E ratio for 2025 [1]. Core Viewpoints - The company is positioned as a leading consumer goods player with both dividend and growth attributes, primarily through its control of Nanfu Battery, which is expected to enhance profitability as ownership increases [1]. - The domestic zinc-manganese battery market is stable, with alkaline technology leading and potential for growth in overseas markets [1]. - Nanfu Battery holds a dominant market share in China, with an 85.9% retail market share in alkaline batteries, indicating a strong competitive position [1]. - The company has a robust cash flow and dividend capability, with a high dividend payout ratio of 87.1% in 2023 [1]. Summary by Sections Company Overview - Anfu Technology has transitioned from a department store business to focus on consumer batteries, acquiring a controlling stake in Nanfu Battery through strategic restructuring [1][19]. - The company plans to increase its stake in Nanfu Battery from 26.1% to potentially over 42.9% [1][30]. Industry Analysis - The global zinc-manganese battery market is projected to grow steadily, with a market size of approximately 10.5 billion USD in 2022 and an expected growth rate of 4.1% from 2022 to 2028 [39]. - The demand for zinc-manganese batteries is expected to rise due to their applications in various consumer electronics and medical devices [40]. Competitive Landscape - Nanfu Battery is recognized as the leading brand in China's alkaline battery market, with a significant competitive edge due to its established brand recognition and distribution network [48][49]. - The company has a comprehensive sales network with over one million sales points across various channels, enhancing its market penetration [53]. Growth Potential - The company is focusing on expanding its OEM sales overseas, with a significant increase in export revenue expected [60]. - Future growth is anticipated through the development of its own brand in international markets and potential acquisitions of overseas brands [64][65]. Financial Projections - The company forecasts net profits of 214 million CNY, 275 million CNY, and 325 million CNY for 2024, 2025, and 2026, respectively, with corresponding EPS of 1.02 CNY, 1.30 CNY, and 1.54 CNY [2][70]. - Revenue is expected to grow from 4.74 billion CNY in 2024 to 5.97 billion CNY in 2026, reflecting a compound annual growth rate of approximately 9.8% [70].