FENGHUA(SZ:000636) Guoxin Securities·2025-04-29 08:42Investment Rating - The investment rating for the company is "Outperform the Market" [5][3] Core Views - The company is expected to achieve a significant increase in net profit, with a projected growth of 130% in non-recurring net profit for 2024. The revenue is forecasted to reach 4.939 billion yuan, representing a year-on-year increase of 17% [1][3] - The company has made substantial progress in cost reduction and efficiency improvement, with a focus on digital transformation and operational efficiency [2][3] - The recovery of downstream market demand, particularly in the automotive electronics and communication sectors, is driving sales growth [1][2] Financial Performance Summary - For 2024, the company is projected to achieve operating revenue of 4.939 billion yuan (YoY +17%) and a net profit of 337 million yuan (YoY +94.5%). The non-recurring net profit is expected to be 347 million yuan (YoY +130.4%) [1][4] - The company’s sales volume and production have reached historical highs, with year-on-year increases of 29.02% and 28.20%, respectively [1] - The company has introduced several high-end products and achieved breakthroughs in key technologies, enhancing its competitive edge in the market [2] Earnings Forecast and Valuation - The earnings forecast for 2025-2027 indicates a net profit growth of 48.9%, 22.7%, and 19.6%, reaching 500 million yuan, 620 million yuan, and 740 million yuan, respectively [3][4] - The current market capitalization corresponds to a price-to-earnings (PE) ratio of 30, 25, and 21 for 2024-2026 [3][4]