Hongfa(SH:600885) Changjiang Securities·2025-05-06 23:30Investment Rating - The report maintains a "Buy" rating for the company [6][7]. Core Insights - The company reported a total revenue of 14.1 billion yuan for 2024, representing a year-on-year increase of 9.1%. The net profit attributable to shareholders was 1.631 billion yuan, up 17.1% year-on-year, while the net profit excluding non-recurring items was 1.515 billion yuan, reflecting a 13.9% increase [2][4]. - In Q4 2024, the company achieved a revenue of 3.23 billion yuan, which is a 6.1% increase year-on-year but a 11.1% decrease quarter-on-quarter. The net profit for the same quarter was 362 million yuan, up 24.8% year-on-year but down 14.9% quarter-on-quarter [2][4]. Revenue Breakdown - The company, as a global leader in relays, increased its global market share by 1.7 percentage points in 2024, achieving a growth rate that outpaced the industry. Relay product revenue reached 12.701 billion yuan, up 9.0% year-on-year, while electrical product revenue was 792 million yuan, down 3.2%. Other business revenue grew significantly by 40.2% to 564 million yuan [11]. - Domestic revenue for 2024 was 9.237 billion yuan, reflecting a 16.1% year-on-year increase, while international revenue was 4.302 billion yuan, down 5.8% year-on-year [11]. Profitability Metrics - The overall gross margin for 2024 was 36.21%, a decrease of 0.68 percentage points year-on-year. In Q4 2024, the gross margin was 39.69%, down 1.51 percentage points year-on-year but up 3.74 percentage points quarter-on-quarter [11]. - The gross margin for relay products was 37.99%, down 0.64 percentage points year-on-year, while the gross margin for electrical products was 22.61%, down 0.12 percentage points [11]. Expense Analysis - The total expense ratio for 2024 was 19.91%, an increase of 1.29 percentage points year-on-year. In Q4 2024, the expense ratio rose to 25.86%, up 3.85 percentage points year-on-year [11]. - The breakdown of expenses showed a sales expense ratio of 3.68%, a management expense ratio of 10.18%, a research and development expense ratio of 5.57%, and a financial expense ratio of 0.49% for the full year 2024 [11]. Cash Flow and Balance Sheet - The company reported a year-end inventory of 3.487 billion yuan, an increase of 36.8% year-on-year, indicating a positive outlook for future deliveries. The year-end accounts receivable stood at 4.920 billion yuan, up 0.8% year-on-year [11]. - The asset-liability ratio at the end of 2024 was 39.30%, an increase of 1.69 percentage points year-on-year [11].