KFMI(300666)2025-04-17 03:13Investment Rating - The report maintains a "Recommended" rating for Jiangfeng Electronics (300666.SZ) [1] Core Views - Jiangfeng Electronics has solidified its leading position in the sputtering target material market and is experiencing significant growth in precision components, with a revenue increase of 38.57% year-on-year to 3.605 billion yuan in 2024 [5] - The company has achieved ten consecutive years of revenue growth, demonstrating stable operational development [5] - The semiconductor industry is showing signs of mild recovery, contributing to the company's revenue growth [5] - The ultra-pure target material business generated 2.333 billion yuan in revenue, up 39.51% year-on-year, while the precision components business saw a 55.53% increase to 888 million yuan [5] - The company's net profit attributable to shareholders rose significantly by 56.79% to 401 million yuan in 2024, despite a slight decline in gross and net profit margins [5] Summary by Sections Financial Performance - In 2024, Jiangfeng Electronics achieved operating revenue of 3.605 billion yuan, a year-on-year increase of 38.57%, and a net profit of 401 million yuan, up 56.79% [5][6] - The gross margin decreased by 1.03 percentage points to 28.17%, while the net margin fell by 0.88 percentage points to 7.59% [5] - The ultra-pure target material business's gross margin increased by 2.9 percentage points to 31.35%, while the precision components business's gross margin decreased by 2.81 percentage points to 24.27% [5] Future Outlook - Revenue projections for 2025 to 2027 are 4.506 billion yuan, 5.531 billion yuan, and 6.706 billion yuan, respectively, with year-on-year growth rates of 24.99%, 22.75%, and 21.24% [6] - Net profit forecasts for the same period are 511 million yuan, 648 million yuan, and 776 million yuan, with growth rates of 27.51%, 26.86%, and 19.74% [6] - The report anticipates a gradual recovery in gross and net profit margins as the company increases the sales proportion of high-value-added products [5] Market Position and Strategy - Jiangfeng Electronics is positioned to benefit from the domestic substitution trend in semiconductor materials and components, with a strong technological edge in producing advanced materials [5] - The company has a comprehensive product range, capable of mass-producing over 40,000 types of components, which are widely used in critical semiconductor processes [5] - The company is enhancing its global presence through investments, including a planned investment of 350 million yuan in its Korean subsidiary [5]