KFMI(SZ:300666) Dongxing Securities·2025-09-08 10:52Investment Rating - The report maintains a "Recommended" rating for Jiangfeng Electronics [2][10]. Core Views - Jiangfeng Electronics achieved a revenue of 2.095 billion yuan in the first half of 2025, representing a year-on-year growth of 28.71%. The net profit attributable to the parent company was 176 million yuan, with a year-on-year increase of 3.60% [3][4]. - The company's ultra-pure target material business generated revenue of 1.325 billion yuan, up 23.91% year-on-year, with a gross margin of 33.26%, an increase of 2.93 percentage points compared to the same period last year [4]. - The semiconductor precision components business saw revenue of 459 million yuan, a year-on-year growth of 15.12%, although the gross margin decreased by 10.99 percentage points to 23.65% due to initial production phase challenges [4]. - Jiangfeng Electronics is increasing its R&D investment, with R&D expenses rising from 125 million yuan in 2022 to 172 million yuan in 2023, and projected to reach 217 million yuan in 2024, reflecting a compound annual growth rate of 32.06% over three years [5]. - The company plans to raise up to 1.948 billion yuan through a private placement to fund projects including the production of electrostatic chucks and ultra-pure metal sputtering targets [5][6]. Financial Performance Summary - For the first half of 2025, Jiangfeng Electronics reported a revenue of 2.095 billion yuan, a 28.71% increase year-on-year, and a net profit of 176 million yuan, up 3.60% [3][4]. - The forecast for revenue from 2023 to 2027 shows significant growth, with expected revenues of 2.324 billion yuan in 2023, 3.605 billion yuan in 2024, and 4.646 billion yuan in 2025, reflecting growth rates of 45.80%, 38.57%, and 28.88% respectively [12][13]. - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 1.98 yuan, 2.41 yuan, and 2.98 yuan respectively [10][12].