富士达

Summary of Fujida's Conference Call Company Overview - Company: Fujida - Industry: Aerospace and Defense, Commercial Space Key Points and Arguments Industry and Market Dynamics - Military Orders Recovery: Fujida's military orders are expected to resume growth by March 2025, with approximately 300 million yuan in backlog as of the end of April, of which 65%-70% are military orders, indicating strong support for annual performance [2][5][6] - Commercial Space Projects: The company is deeply involved in domestic Starlink projects, including the Qianfan constellation and G60 Starlink, with market shares exceeding 70% and 60% respectively, benefiting from the acceleration of commercial satellite launches in China [2][5][8] - Connector Market Growth: China holds a 32% share of the global connector market, with increasing downstream demand driven by transitions from 5G-A to 6G, rising defense and aerospace budgets, and the emergence of electric vehicles and AI computing centers [4][13] Financial Performance - Revenue and Profitability: In 2024, revenue from RF connectors is projected to reach 439 million yuan, accounting for 57.56% of total revenue, with a 24% year-on-year growth in the first half of 2025 and a gross margin of 37.15%, the highest in three years [2][10][18] - Profit Forecast: Expected net profits for 2025 to 2027 are 105 million, 151 million, and 178 million yuan respectively, with corresponding earnings per share (EPS) of 0.56, 0.81, and 0.95 yuan, maintaining a buy rating [4][18][37] Strategic Partnerships - Collaboration with Huawei: Fujida has been a key partner of Huawei for over 20 years, with revenue from Huawei expected to reach 215 million yuan in 2024, nearly 30% of total revenue. The partnership is expanding from communication base stations to high-end equipment manufacturing and satellite projects [2][11][36] Emerging Markets and Technologies - Expansion into New Fields: Fujida is actively exploring emerging sectors such as low-altitude economy, industrial drones, medical devices, and quantum communication, which currently contribute modestly to revenue but have significant growth potential [2][12][13] - HTCC Technology: The company is developing High-Temperature Co-fired Ceramic (HTCC) products, expected to enter mass production by 2026, enhancing its capabilities in high-reliability applications [2][33] Competitive Advantages - Core Supplier in Defense and Aerospace: As a key supplier within the AVIC system, Fujida is positioned to benefit from the increasing demand for high-reliability RF interconnect products due to trends in defense modernization and commercial space development [6][7] - R&D Investment: Fujida has shown a steady increase in R&D personnel and expenditures, with a focus on advanced technologies and products, which is expected to drive future growth [31] Customer Structure - High Customer Concentration: The top five customers account for 74% of revenue, with Huawei being the largest, highlighting the company's reliance on a few key clients [11][36] Future Outlook - Positive Market Trends: The overall outlook for the RF connector industry is optimistic, with projections indicating a market size of 5.57 billion USD by 2030, driven by advancements in telecommunications and aerospace sectors [15][30] Additional Important Information - Production Capacity: Fujida has two major capacity expansion projects nearing completion, which are expected to contribute to revenue growth as market conditions improve [32] - Sales Performance by Region: Domestic sales accounted for 99.12% of total revenue in 2024, indicating a strong focus on the local market [22] This summary encapsulates the key insights from Fujida's conference call, highlighting the company's strategic positioning, financial performance, and growth prospects within the aerospace and defense industry.