HONGYUAN ELECTRONICS(603267) HUAXI Securities·2025-04-06 08:22Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company has reported a revenue of 1.492 billion yuan for 2024, a year-on-year decrease of 10.98%, and a net profit attributable to shareholders of 154 million yuan, down 43.55% year-on-year [2] - The demand in the industry has fully recovered, with significant order growth from upstream component manufacturers, particularly in the MLCC sector [3] - The company is expected to benefit from a new round of military orders, with a substantial increase in demand for high-reliability ceramic capacitors [3] - The average price of high-reliability capacitors has decreased by approximately 20% compared to the previous year, impacting the gross margin [4] - The company is expanding its product categories and applications, particularly in military and aerospace sectors, which are expected to drive future growth [5][6] - The global military expenditure reached a record high of 2.443 trillion USD in 2024, indicating a potential increase in military trade demand [7] - The commercial aerospace sector is anticipated to experience significant growth in 2025, with the company positioned to benefit from increased satellite launches and related electronic component demand [8][9] Financial Summary - The company’s projected revenues for 2025, 2026, and 2027 are 2.097 billion yuan, 2.629 billion yuan, and 3.138 billion yuan respectively, with year-on-year growth rates of 40.6%, 25.3%, and 19.4% [10][14] - The net profit for the same years is expected to be 354 million yuan, 501 million yuan, and 604 million yuan, with growth rates of 130.4%, 41.5%, and 20.5% respectively [10][14] - The earnings per share (EPS) are projected to be 1.53 yuan, 2.17 yuan, and 2.61 yuan for 2025, 2026, and 2027 respectively [10][14] - The company maintains a healthy financial position with a projected gross margin recovery as delivery volumes increase [4][10]