Investment Rating - The investment rating for the company is maintained at "Buy" [1] Core Views - The company has shown significant growth in its Q2 performance, particularly in the high-speed cable module segment, which is experiencing a rapid increase in demand from major clients [6][7] - The company is expected to continue expanding its high-speed cable module business and improve its profitability due to an optimized revenue structure [6][10] Financial Summary - Target price is set at RMB 88.35, with the closing price as of August 25 at RMB 78.50, indicating potential upside [2] - Market capitalization is RMB 36,188 million, with a 6-month average daily trading volume of RMB 784.44 million [2] - Revenue projections for the upcoming years are as follows: - 2024: RMB 1,092 million (up 20.83%) - 2025: RMB 2,470 million (up 126.24%) - 2026: RMB 4,442 million (up 79.83%) - 2027: RMB 5,870 million (up 32.14%) [5][21] - Net profit attributable to the parent company is projected to turn positive in 2025, reaching RMB 377.90 million, and further increasing to RMB 1,032 million by 2027 [5][21] Business Segments - The company’s revenue growth is driven by two main strategic businesses: 1. High-speed cable modules, which have secured bulk orders from major clients such as Huawei and Alibaba, leading to a significant market presence [7] 2. High-voltage connectors for new energy vehicles, which have successfully entered the supply chains of several mainstream automakers [7] - The company’s gross margin improved significantly to 32.86% in 1H25, driven by the introduction of high-margin products [8] Profitability and Valuation - The company’s profitability is expected to improve due to a favorable revenue mix and operational efficiencies [10] - The estimated price-to-earnings (PE) ratio for 2026 is projected at 60x for the communications segment, reflecting strong growth potential [10][23] - The overall target market valuation for the company is set at RMB 407.29 billion, corresponding to the target price of RMB 88.35 per share [23]
华丰科技（688629）：Q2业绩释放，高速线模组“从一到十”