FENGHUA(000636) 华西证券·2025-01-24 07:00Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market [6][16]. Core Insights - The company is expected to achieve a net profit of 305-365 million yuan in 2024, representing a year-on-year increase of 75.81-110.40%, with a non-recurring net profit forecast of 315-375 million yuan, reflecting a growth of 109.37-149.35% [1][2]. Summary by Sections Company Overview - The company, Fenghua High-Tech (000636), is a leading domestic passive component manufacturer, aiming to become a leader in high-end electronic components. Established in 1984 and listed in 1996, it offers a wide range of products including MLCCs, resistors, inductors, and various electronic materials, serving industries such as automotive electronics, industrial automation, consumer electronics, and more [12]. Performance Forecast - The company is projected to achieve revenues of 4.876 billion yuan in 2024, 5.959 billion yuan in 2025, and 6.727 billion yuan in 2026, with year-on-year growth rates of 15.5%, 22.2%, and 12.9% respectively. The net profit is expected to be 335 million yuan in 2024, 542 million yuan in 2025, and 694 million yuan in 2026, with growth rates of 93.0%, 61.9%, and 28.0% respectively [4][9][15]. Revenue Drivers - The significant revenue growth is attributed to improved market demand and the company's ongoing efforts in market expansion, leading to a stable increase in product sales. The company has also implemented cost control measures through project management, resulting in reduced operational costs [2][3]. Technological Advancements - The company has increased its R&D investments, establishing several high-end platforms for materials and product development. It has successfully addressed key material challenges and achieved breakthroughs in high-end product technologies, enhancing its competitive edge in the market [3][4]. Valuation Metrics - As of January 23, 2025, the company's stock price was 14.35 yuan, with corresponding price-to-earnings (PE) ratios of 49.59x for 2024, 30.63x for 2025, and 23.92x for 2026. The report highlights a favorable valuation compared to peer companies [4][15][16].