Hongfa(600885)2025-05-08 09:45Investment Rating - The report maintains a "Buy" rating for the company [5][6]. Core Views - The company reported a revenue of 3.98 billion yuan for Q1 2025, representing a year-on-year increase of 15.3% and a quarter-on-quarter increase of 23.2% [3][9]. - The net profit attributable to the parent company for Q1 2025 was 410 million yuan, up 15.5% year-on-year and 13.7% quarter-on-quarter [3][9]. - The non-recurring net profit for Q1 2025 was 380 million yuan, reflecting a year-on-year increase of 14.2% and a quarter-on-quarter increase of 20.8% [3][9]. Revenue Analysis - The company expects all downstream sectors to achieve year-on-year growth, with the new energy sector anticipated to grow rapidly [9]. - The company is experiencing rapid development in modular products, with high-voltage control boxes, automotive modules, and industrial control modules expected to see relatively high growth in Q1 2025 [9]. Profitability and Costs - The gross profit margin for Q1 2025 was 33.77%, a decrease of 1.04 percentage points year-on-year, primarily due to raw material and product structure impacts [9]. - The total expense ratio for Q1 2025 was 17.64%, down 1.56 percentage points year-on-year, indicating effective cost control by the company [9]. Balance Sheet Insights - As of the end of Q1 2025, the company's inventory was 2.93 billion yuan, an increase of 25.6% year-on-year but a decrease of 16.0% from the previous quarter [9]. - The accounts receivable at the end of Q1 2025 reached 6.197 billion yuan, up 11.4% year-on-year and 25.9% quarter-on-quarter [9]. - The company's asset-liability ratio at the end of Q1 2025 was 38.49%, an increase of 2.26 percentage points year-on-year [9].