Hongfa(SH:600885) Soochow Securities·2025-07-30 06:04Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance in the first half of 2025 met expectations, with significant growth in high-voltage direct current and industrial control sectors [8] - Revenue for the first half of 2025 reached 8.347 billion yuan, a year-on-year increase of 15.43%, while net profit attributable to shareholders was 0.964 billion yuan, up 14.19% year-on-year [8] - The company is expected to maintain a revenue growth rate of over 40% in the high-voltage direct current relay segment due to increased sales from domestic and international clients [8] - The industrial relay segment is also anticipated to see growth as overseas clients begin to replenish inventory, particularly in Europe [8] - The company is experiencing strong demand in the new energy, automotive, and signal relay markets, with expectations of continued growth in these areas [8] - The company's strategic focus on high-quality development and diversification is expected to drive long-term growth [8] - The financial outlook remains positive, with projected net profits of 1.985 billion yuan, 2.316 billion yuan, and 2.689 billion yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 21.72%, 16.67%, and 16.12% [8] Financial Summary - Total revenue is projected to reach 16.679 billion yuan in 2025, with a year-on-year growth of 18.27% [1] - The latest diluted EPS is expected to be 1.36 yuan per share in 2025, with a corresponding P/E ratio of 17.36 [1] - The company's gross margin is expected to remain stable around 36.27% in 2025, with a net profit margin of 11.90% [9]