Anfu Technology(SH:603031) Guoxin Securities·2026-02-27 00:45Investment Rating - The report assigns an "Outperform" rating for the company [1]. Core Insights - The company has transformed from a retail business to a leader in the domestic small battery industry by acquiring a controlling stake in Nanfu Battery and divesting its original retail operations [3][15]. - Nanfu Battery is recognized for its high profit margins, strong return on equity (ROE), and robust cash flow, maintaining a leading market share in alkaline batteries for 32 consecutive years [6][47]. - The company is actively investing in high-tech sectors, including AI and semiconductor manufacturing, to establish a second growth curve alongside its core battery business [3][5]. Summary by Sections 1. Company Overview - The company, originally established in 1984, transitioned to focus on consumer batteries after acquiring a 51% stake in Yajing Technology in 2022, thus controlling Nanfu Battery [3][15]. - It primarily produces high-performance alkaline zinc-manganese batteries, with a significant market presence in various battery types [15]. 2. Control of Nanfu Battery - The company currently holds a 46% stake in Nanfu Battery and plans to acquire the remaining shares to enhance profitability [6]. - Nanfu Battery's revenue grew from 2.18 billion to 4.64 billion from 2016 to 2024, with a compound annual growth rate (CAGR) of 10% [6][53]. 3. Strategic Investment in Yilaimi - The strategic investment in Yilaimi aims to position the company in the next-generation optical chip technology, potentially opening new growth avenues [5][6]. 4. Profit Forecast and Valuation - Revenue projections for 2025-2027 are estimated at 4.82 billion, 5.31 billion, and 5.83 billion, with corresponding net profits of 235 million, 421 million, and 594 million [6]. - The stock's fair value range is estimated between 57.6 and 69.1 yuan, corresponding to a market capitalization of 14.85 billion to 17.81 billion [6].