HONGYUAN ELECTRONICS(603267) Huaxin Securities·2025-04-10 01:23Investment Rating - The report assigns a "Buy" investment rating for the company, marking the first coverage of the stock [9]. Core Views - The demand for ceramic capacitors is recovering, and the company is continuously investing in R&D to expand into new business areas [1]. - The company's revenue for 2024 is projected to be 1.492 billion yuan, a decrease of 10.98% year-on-year, with a net profit of 154 million yuan, down 43.55% year-on-year [1][2]. - The company is expected to benefit from a recovery in downstream customer demand, with capacity utilization remaining high [9]. Summary by Sections Revenue and Profitability - In 2024, the company experienced a 10.98% decline in revenue due to slow recovery in the downstream market for electronic components, leading to decreased sales and prices of its core product, high-reliability ceramic capacitors [2]. - The gross margin for high-reliability ceramic capacitors has declined, with an overall decrease of 8.57 percentage points in the gross margin of self-produced electronic components [2]. Market Demand and Capacity Utilization - In Q1 2025, there was a noticeable improvement in customer demand, with increased orders and market expectations for the company's multilayer ceramic capacitors (MLCC), which are widely used in high-reliability fields [3]. - The company ranks among the top 10 in the global MLCC market share, indicating a strong position in the industry [3]. R&D Investment and New Business Development - The company invested 112.99 million yuan in R&D in 2024, accounting for 15.23% of its self-operated business revenue, an increase of 3.59 percentage points from the previous year [4]. - New business areas include microcontrollers and integrated circuits in Chengdu, which saw a revenue increase of 56.11% year-on-year, while the company is also expanding into micro-nano system integration ceramic shells in Hefei [8]. Financial Forecast - Revenue forecasts for 2025, 2026, and 2027 are projected at 2.168 billion yuan, 2.821 billion yuan, and 3.332 billion yuan, respectively, with corresponding EPS of 1.52 yuan, 2.08 yuan, and 2.63 yuan [9][11]. - The company is expected to see a significant recovery in net profit, with a projected growth rate of 127.8% in 2025 [11].