KFMI(300666) 华鑫证券·2025-01-15 23:50Investment Rating - The report assigns a "Buy" investment rating for Jiangfeng Electronics (300666.SZ) [1] Core Views - Jiangfeng Electronics has shown significant revenue growth, with a 41.77% year-on-year increase in revenue for the first three quarters of 2024, reaching 2.625 billion yuan, and a 48.51% increase in net profit to 287 million yuan [4] - The company is positioned as a leader in the high-purity sputtering target materials industry, benefiting from strategic investments in semiconductor precision components and expanding its product line [4][6] - The company has established a strong customer base, including major players like SMIC, TSMC, and BOE, which supports its market share and revenue growth [6] Summary by Sections Revenue Growth - In Q3 2024, Jiangfeng Electronics achieved revenue of 998 million yuan, marking a 52.48% year-on-year increase [4] - The company is expanding its production capabilities with multiple new production bases coming online, contributing to sustained revenue growth [4] R&D and Quality Assurance - The company has established an analysis laboratory for physical vapor deposition (PVD) materials, equipped with advanced testing equipment, enhancing product quality and customer satisfaction [5] - The high purity of sputtering targets is critical for semiconductor chip and flat panel display applications, with stringent quality requirements [5] Market Position and Customer Relationships - Jiangfeng Electronics has become a qualified supplier for major semiconductor manufacturers, ensuring long-term stable partnerships that facilitate revenue sharing in the integrated circuit market [6] - According to a report by Frost & Sullivan, Jiangfeng Electronics ranked second in the global wafer manufacturing sputtering target market in 2022 [6] Financial Forecast - Revenue projections for 2024, 2025, and 2026 are 3.437 billion yuan, 4.420 billion yuan, and 5.599 billion yuan, respectively, with corresponding EPS of 1.39 yuan, 1.83 yuan, and 2.34 yuan [8][10] - The current stock price corresponds to PE ratios of 50, 38, and 30 for the years 2024, 2025, and 2026, respectively [8]