Financials Hongfa Technology Co., Ltd.

Equities

600885

CNE000000JK6

Electronic Equipment & Parts

End-of-day quote Shanghai S.E. Other stock markets 06:00:00 2024-04-25 pm EDT			5-day change	1st Jan Change
27.83 ^CNY	+1.57%		-0.39%	+0.69%

Apr. 24	Hongfa Technology Co., Ltd. Reports Earnings Results for the First Quarter Ended March 31, 2024	CI
Apr. 02	Hongfa Technology's 2023 Profit, Operating Income Jump 11%	MT

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	25,657	40,381	55,589	34,836	28,820	29,018	-	-
Enterprise Value (EV) ¹	25,437	40,504	55,587	35,828	29,788	27,747	26,711	24,851
P/E ratio	36.3 x	48.4 x	52.2 x	27.6 x	20.6 x	17.5 x	14.9 x	13.3 x
Yield	0.84%	0.63%	0.57%	1.08%	1.59%	1.79%	2.1%	2.59%
Capitalization / Revenue	3.62 x	5.16 x	5.55 x	2.97 x	2.23 x	1.95 x	1.71 x	1.57 x
EV / Revenue	3.59 x	5.18 x	5.55 x	3.05 x	2.3 x	1.87 x	1.58 x	1.35 x
EV / EBITDA	15.4 x	22.3 x	25 x	13.8 x	9.44 x	7.82 x	6.61 x	5.39 x
EV / FCF	27.1 x	406 x	-4,812 x	459 x	18.2 x	24.4 x	19.5 x	16.4 x
FCF Yield	3.7%	0.25%	-0.02%	0.22%	5.49%	4.1%	5.13%	6.08%
Price to Book	5.21 x	7.31 x	8.96 x	4.87 x	3.46 x	2.96 x	2.55 x	2.25 x
Nbr of stocks (in thousands)	1,042,666	1,042,666	1,042,666	1,042,674	1,042,676	1,042,676	-	-
Reference price ²	24.61	38.73	53.31	33.41	27.64	27.83	27.83	27.83
Announcement Date	4/29/20	2/2/21	3/10/22	3/30/23	3/29/24	-	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	7,081	7,819	10,023	11,733	12,930	14,853	16,946	18,455
EBITDA ¹	1,650	1,813	2,222	2,588	3,155	3,549	4,043	4,607
EBIT ¹	1,139	1,305	1,626	1,859	2,251	2,579	3,025	3,381
Operating Margin	16.08%	16.69%	16.22%	15.85%	17.41%	17.37%	17.85%	18.32%
Earnings before Tax (EBT) ¹	1,123	1,302	1,620	1,859	2,245	2,587	3,037	3,465
Net income ¹	704.1	832.1	1,063	1,247	1,393	1,664	1,959	2,216
Net margin	9.94%	10.64%	10.6%	10.63%	10.77%	11.2%	11.56%	12.01%
EPS ²	0.6786	0.8000	1.021	1.210	1.340	1.587	1.866	2.092
Free Cash Flow ¹	940.4	99.75	-11.55	78.04	1,637	1,138	1,370	1,512
FCF margin	13.28%	1.28%	-0.12%	0.67%	12.66%	7.66%	8.08%	8.19%
FCF Conversion (EBITDA)	56.98%	5.5%	-	3.02%	51.88%	32.06%	33.88%	32.81%
FCF Conversion (Net income)	133.56%	11.99%	-	6.26%	117.5%	68.39%	69.91%	68.21%
Dividend per Share ²	0.2071	0.2429	0.3064	0.3600	0.4390	0.4975	0.5842	0.7205
Announcement Date	4/29/20	2/2/21	3/10/22	3/30/23	3/29/24	-	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2021 Q4	2022 Q1	2022 Q2	2022 S1	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4	2025 Q1	2025 Q2
Net sales ¹	2,458	2,875	2,995	-	3,090	2,774	3,280	3,392	3,258	2,999	3,453	3,712	3,634	3,514	3,955	4,091
EBITDA ¹	519.5	586	684.4	-	674.7	-	-	-	-	-	-	939.3	844.3	768.9	879.6	1,058
EBIT ¹	323.2	459.5	550.7	-	499.3	349.9	531	586.6	556.4	577.1	549.6	714.9	638.4	440	593.8	772.5
Operating Margin	13.15%	15.98%	18.39%	-	16.16%	12.61%	16.19%	17.29%	17.08%	19.24%	15.92%	19.26%	17.57%	12.52%	15.01%	18.88%
Earnings before Tax (EBT)	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Net income	-	-	341.4	620.7	-	-	-	-	-	-	-	-	-	-	-	-
Net margin	-	-	11.4%	-	-	-	-	-	-	-	-	-	-	-	-	-
EPS ²	0.2357	0.2714	0.2200	-	0.3400	0.2700	0.3100	0.3700	0.3500	0.3100	0.3400	0.5069	0.3524	0.3384	0.3599	0.6567
Dividend per Share ²	0.3064	-	-	-	-	-	-	-	-	-	-	-	-	0.7334	-	-
Announcement Date	3/10/22	4/26/22	8/15/22	8/15/22	10/28/22	3/30/23	4/27/23	7/26/23	10/30/23	3/29/24	4/24/24	-	-	-	-	-

¹CNY in Million²CNY

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	-	123	-	992	969	-	-	-
Net Cash position ¹	220	-	2.17	-	-	1,270	2,306	4,167
Leverage (Debt/EBITDA)	-	0.0678 x	-	0.3834 x	0.3071 x	-	-	-
Free Cash Flow ¹	940	99.7	-11.6	78	1,637	1,138	1,370	1,512
ROE (net income / shareholders' equity)	15.2%	16%	18.2%	17.9%	17.4%	17.8%	18.2%	18.1%
ROA (Net income/ Total Assets)	7.38%	7.91%	8.67%	-	-	8.8%	9.05%	8.87%
Assets ¹	9,544	10,520	12,255	-	-	18,909	21,643	24,989
Book Value Per Share ²	4.720	5.300	5.950	6.860	8.000	9.420	10.90	12.40
Cash Flow per Share ²	1.610	0.6900	0.8700	1.530	2.550	2.690	2.750	2.910
Capex ¹	741	620	923	1,517	1,024	1,217	1,273	1,534
Capex / Sales	10.46%	7.93%	9.21%	12.93%	7.92%	8.19%	7.51%	8.31%
Announcement Date	4/29/20	2/2/21	3/10/22	3/30/23	3/29/24	-	-	-

¹CNY in Million²CNY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Hongfa Technology Co., Ltd.

Trading Rating

Investor Rating

ESG Refinitiv

C-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

27.83 CNY

Average target price

36.4 CNY

Spread / Average Target

+30.80%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Electronic Component

	1st Jan change	Capi.
HONGFA TECHNOLOGY CO., LTD.	+0.69%	4B
AMPHENOL CORPORATION	+21.55%	72.37B
MURATA MANUFACTURING CO., LTD	-4.21%	34.41B
LUXSHARE PRECISION INDUSTRY CO., LTD.	-16.43%	28.52B
JABIL INC.	-7.17%	14.26B
AVIC JONHON OPTRONIC TECHNOLOGY CO.,LTD.	-13.03%	9.92B
LENS TECHNOLOGY CO., LTD.	+5.83%	9.52B
SUZHOU TFC OPTICAL COMMUNICATION CO., LTD.	+71.16%	8.54B
COHERENT CORP.	+26.49%	8.36B
EOPTOLINK TECHNOLOGY INC., LTD.	+69.91%	8.21B

Electronic Component