Hongfa(600885) 信达证券·2025-04-02 08:23Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company maintains a leading position in the relay market, with a market share increase of 1.7 percentage points in 2024, ranking first globally. The high-voltage direct current relay market share is 40%, while the automotive relay market share has risen by 3.1 percentage points to 23.1%. In the power relay sector, the company has maintained a 57.1% market share while seizing global grid renovation opportunities [4] - The company has initiated the "75+" strategy, with positive momentum in the "5+" product development. In the low-voltage electrical sector, the company is integrating low-voltage electrical products with relays to create comprehensive solutions. Connector product shipments increased by 28% year-on-year, with exports to Vietnam and Turkey. Capacitor product shipments also grew by 14% year-on-year [4] - Profit forecasts indicate that the company's net profit attributable to shareholders will be 1.96 billion, 2.29 billion, and 2.61 billion yuan for 2025-2027, representing year-on-year growth of 20%, 17%, and 14% respectively. As of April 1, the market value corresponds to a PE ratio of 19 and 16 times for 2025 and 2026 [4] Financial Summary - In 2024, the company achieved total revenue of 14.1 billion yuan, a year-on-year increase of 9.1%, and a net profit attributable to shareholders of 1.63 billion yuan, up 17.1% year-on-year. The fourth quarter of 2024 saw revenue of 3.23 billion yuan, a 7.81% increase year-on-year, and a net profit of 362 million yuan, an 11.37% increase year-on-year [1][3] - Key financial indicators for 2023A to 2027E show total revenue growth from 12.93 billion yuan in 2023 to 21.09 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 11.1%. Net profit attributable to shareholders is projected to grow from 1.39 billion yuan in 2023 to 2.61 billion yuan in 2027, with a CAGR of approximately 14% [3][4]