Hongfa(600885) 民生证券·2025-03-29 14:23Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Views - The company achieved a revenue of 14.102 billion yuan in 2024, representing a year-on-year increase of 9.07%, and a net profit attributable to shareholders of 1.631 billion yuan, up 17.09% year-on-year [1]. - The company has solidified its leading position in the relay industry, with a market share increase of 1.7 percentage points, reaching the top globally [2]. - The company is actively developing new product categories under its "75+" strategy, achieving breakthroughs in multiple fields [3]. Financial Performance Summary - In 2024, the company reported a gross margin of 36.21%, a slight decrease of 0.68 percentage points year-on-year, while the net profit margin increased by 0.5 percentage points to 15.34% [1]. - The company’s revenue projections for 2025, 2026, and 2027 are 16.297 billion yuan, 18.784 billion yuan, and 21.755 billion yuan, respectively, with growth rates of 15.6%, 15.3%, and 15.8% [4][5]. - The net profit attributable to shareholders is expected to reach 1.898 billion yuan in 2025, 2.240 billion yuan in 2026, and 2.649 billion yuan in 2027, with growth rates of 16.3%, 18.0%, and 18.3% respectively [4][5]. Market Position and Product Development - The company’s relay segment generated 12.701 billion yuan in revenue, accounting for 90.1% of total revenue, with significant growth in high-voltage direct current relays and automotive relays [2]. - The company is expanding its new product categories, including low-voltage electrical appliances, film capacitors, connectors, current sensors, and fuses, with notable revenue growth in these areas [3].