Hongfa(SH:600885) Soochow Securities·2024-03-30 16:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a revenue of 12.93 billion yuan in 2023, a year-on-year increase of 11.0%, and a net profit attributable to shareholders of 1.39 billion yuan, also up 11.4% year-on-year, aligning with market expectations [3] - The gross margin for 2023 was 36.9%, an increase of 2.8 percentage points year-on-year, driven by currency fluctuations, a higher proportion of high-margin new energy vehicles and traditional vehicles, and accounting impacts from the acquisition of Hongxing Tai [3] - The company is experiencing strong growth in its new energy vehicle and photovoltaic relay segments, with a global market share for high-voltage direct current relays exceeding 40% [3] - The company is implementing a "75+" strategy to expand its product categories and aims to reach a revenue target of 10 billion yuan [3] Financial Forecasts - The company forecasts a net profit of 1.61 billion yuan for 2024, 1.84 billion yuan for 2025, and 2.10 billion yuan for 2026, with respective year-on-year growth rates of 15%, 15%, and 14% [4] - The estimated earnings per share (EPS) for 2024 is 1.54 yuan, with a price-to-earnings (P/E) ratio of 22 times [4] - The total revenue is projected to reach 14.30 billion yuan in 2024, with a year-on-year growth of 10.63% [2][4] Market Data - The closing price of the company's stock is 25.17 yuan, with a market capitalization of approximately 26.24 billion yuan [6] - The price-to-book (P/B) ratio is 3.28 [6] Basic Data - The company's net asset per share is 7.67 yuan, and the debt-to-asset ratio is 37.61% [7]