Xiamen Faratronic Co (600563 CH): Buy: Positives from 800VDC not fully priced in

研报英文原文证据摘录

Xiamen Faratronic Co (600563 CH): Buy: Positives from 800VDC not fully priced in

EK PRICE (RMB)

Given Faratronic’s strong market position in film capacitors and the slow capex

expansion by its competitors, we expect it to garner a leading market share of c50% 250.00

in the AIDC film capacitor market. According to Faratronic’s annual report, the 166.50

company is currently the largest film capacitor supplier in both the solar and NEV 83.00

markets, with market shares in each of 30-40%. Our 2028 earnings estimates are 06/25 Target price: 232.00 12/25 High: 176.77 Low: 100.28 Current: 06/26168.19

now 10% above consensus expectations, as we are more bullish on the earnings

contribution from AIDC film capacitors. Source: LSEG IBES, HSBC Qianhai Securities estimates

Valuation: Its current valuation, at 26x 2027e PE, is below its peer Jianghai Corey Chan* (Reg. No. S1700518100001)

Capacitor’s 2027e PE of 41x, and looks attractive, in our view. We see catalysts from Head, A-share Industrials & Renewables Research

HSBC Qianhai Securities Limited

rising visibility on the progress of next-generation AI server infrastructure of 800V corey.chan@hsbcqh.com.cn

HVDC power racks, which in our view, could be delivered in 2029-30. +86 21 5066 2001

Dun Wang*, CFA, CPA (Reg. No. S1700519060002)

Maintain Buy rating; raise TP to RMB232 (from RMB162): We base our new TP Analyst, A-share Industrials & Renewables Research

on a DCF model. Key assumptions in our model include a WACC of 8.7% HSBC Qianhai Securities Limited dun.wang@hsbcqh.com.cn

(unchanged), an operating cash flow CAGR of 9% in 2025-37e (previously 7% in +86 21 5066 2027

2024-37e), and a terminal growth rate of 2.5% (unchanged). Our TP implies c38% Echo Zhang* (Reg. No. S1700525050001)