Hongfa(600885) 东吴证券·2025-03-30 14:34Investment Rating - The report maintains a "Buy" rating for Hongfa Technology Co., Ltd. (600885) [1] Core Views - The company's Q4 profit slightly exceeded expectations, and strong demand growth is expected to accelerate this year [1] - Revenue for 2024 is projected to be 141.02 billion yuan, representing a year-on-year increase of 9.07% [1] - Net profit attributable to shareholders is forecasted to reach 1.63 billion yuan in 2024, with a year-on-year growth of 17.09% [1] - The company is expected to maintain a robust growth trajectory in the high-voltage direct current relay and automotive relay segments, with anticipated growth rates of 30% and 15% respectively for 2024 [8] - The implementation of the "75+" strategy and the rapid development of "5+" products are key initiatives for the company [8] - The target price is set at 47.5 yuan, based on a 25x PE for 2025, reflecting the company's global leadership position [8] Financial Projections - Total revenue is expected to grow from 12,930 million yuan in 2023 to 14,102 million yuan in 2024, with a projected CAGR of 9.07% [1][9] - Net profit is forecasted to increase from 1,393 million yuan in 2023 to 1,631 million yuan in 2024, with a year-on-year growth rate of 17.09% [1][9] - The latest diluted EPS is projected to be 1.56 yuan for 2024, increasing to 2.58 yuan by 2027 [1][9] - The company's P/E ratio is expected to decrease from 26.91 in 2023 to 22.98 in 2024, indicating improved valuation [1][9]