KFMI(SZ:300666) KAIYUAN SECURITIES·2025-08-28 14:04Investment Rating - The investment rating for Jiangfeng Electronics is "Buy" (maintained) [1] Core Views - Jiangfeng Electronics is positioned as a global leader in sputtering targets and is making strides in the precision components sector, aiming for domestic leadership. The company reported a revenue of 2.095 billion yuan for H1 2025, representing a year-on-year increase of 28.71%, and a net profit of 253 million yuan, up 56.79% year-on-year. The gross margin is at 29.72%, down 1.27 percentage points year-on-year, while the net margin increased by 3.29 percentage points to 11.12% [4][6]. Financial Performance Summary - For H1 2025, Jiangfeng Electronics achieved revenue of 2.095 billion yuan, a 28.71% increase year-on-year, and a net profit of 253 million yuan, reflecting a 56.79% year-on-year growth. The gross margin was 29.72%, down 1.27 percentage points, while the net margin improved to 11.12%, up 3.29 percentage points [4][6]. - The company has adjusted its profit forecasts for 2025-2026 and added a new forecast for 2027, expecting net profits of 528 million yuan, 654 million yuan, and 854 million yuan for 2025, 2026, and 2027 respectively [4][6]. Business Development - Jiangfeng Electronics is expanding its production capabilities with a planned fundraising of up to 1.948 billion yuan. This includes a project to produce 5,100 integrated circuit equipment electrostatic chucks, addressing the domestic supply shortage of high-end electrostatic chucks, and a 350 million yuan investment in South Korea to establish a production base for ultra-high purity metal sputtering targets [5][6]. - The company reported that its ultra-high purity metal sputtering targets generated revenue of 1.325 billion yuan in H1 2025, a 23.91% increase year-on-year, while the precision components segment achieved revenue of 459 million yuan, up 15.12% year-on-year [6]. Market Outlook - The market for electrostatic chucks is projected to reach 2.424 billion USD by 2030, with current domestic localization rates below 10%. Jiangfeng Electronics is expected to lead in achieving mass production breakthroughs in this area [6]. - The company is well-positioned to benefit from the expansion of wafer fabs and increased equipment investments, particularly in the context of domestic substitution and import restrictions [6]. Valuation Metrics - The current stock price corresponds to a price-to-earnings (P/E) ratio of 41.4 for 2025, 33.4 for 2026, and 25.6 for 2027 [4][6]. - The projected revenue for 2025 is 4.462 billion yuan, with a year-on-year growth of 23.8%, and the net profit is expected to reach 528 million yuan, reflecting a 31.8% increase [7].