FENGHUA(SZ:000636) Guotou Securities·2024-04-25 00:00Investment Rating - The investment rating for the company is "Buy-A" with a target price of 13.37 CNY, maintaining the rating [3][17]. Core Views - The company reported a revenue of 1.058 billion CNY in Q1 2024, representing a year-on-year growth of 13.28% and a quarter-on-quarter growth of 7.82%. The net profit attributable to shareholders was 73 million CNY, up 25.05% year-on-year and 17.59% quarter-on-quarter [7][12]. - The company achieved record high production and sales volumes in 2023, with main products (passive components) showing year-on-year growth rates of 36.77% and 32.82% respectively [12][16]. - The company has established six national-level innovation research platforms, focusing on high-end electronic components and materials, which have led to significant advancements in product quality and reliability [13][16]. Financial Summary - The total market capitalization is approximately 13.55 billion CNY, with a circulating market capitalization of 13.55 billion CNY and a total share capital of 1.157 billion shares [3]. - The company’s revenue for 2023 was 4.221 billion CNY, a year-on-year increase of 8.97%, while the net profit attributable to shareholders was 173 million CNY, a decrease of 46.99% [7][18]. - The projected revenues for 2024, 2025, and 2026 are 5.023 billion CNY, 6.015 billion CNY, and 6.783 billion CNY respectively, with net profits expected to be 387 million CNY, 530 million CNY, and 701 million CNY [17][18]. Market Position - The company is recognized as a leading player in the passive components industry in China, with a comprehensive range of products and significant production capacity [16]. - The company has been selected as a "world-class professional leading enterprise" by the State-owned Assets Supervision and Administration Commission, highlighting its influence and reputation in the industry [16].