Market Leadership + Broad Solid Demand = Strong Growth

研报英文原文证据摘录

Market Leadership + Broad Solid Demand = Strong Growth

Idea

July 30, 2026 08:30 AM GMT

Morgan Stanley Asia Limited+MHongfa Technology Co Ltd | Asia Pacific Sheng Zhong

Equity Analyst

Market Leadership + Broad Sheng.Zhong@morganstanley.comCarlos Chai +852 2239-7821

Research Associate

Carlos.Chai@morganstanley.com +852 3963-3180

Solid Demand = Strong Growth Chelsea Wang

Jinlin.Wang@morganstanley.com +852 2239-1118

AlphaSignals Earnings Reaction Andy Huang

Strengthens our thesis Modest upside Modest revision higher Huang.Andy@morganstanley.com +852 3963-4023

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Hongfa’s 2Q26 earnings beat both MSe and consensus. Strong

pricing power, market leadership, broader relay applications and

Hongfa Technology Co Ltd (600885.SS, 600885 CG)

new products, and an underappreciated AI beneficiary angle

China Industrials | China

could support a re-rating. Reiterate OW. Stock Rating Overweight

Industry View In-Line

Price target Rmb48.00

Key Takeaways Up/downside to price target (%) 41

Shr price, close (Jul 29, 2026) Rmb33.98

Management is more optimistic on full-year growth, despite no new guidance, 52-Week Range Rmb40.41-23.35

citing strong backlog, ongoing expansion in new products and applications. Sh out, dil, curr (mn) 1,469

Mkt cap, curr (mn) Rmb49,933

MSe is above guidance (revenue +28% and NP +30% YoY in 2026); with NP Avg daily trading value (mn) Rmb680

+30% YoY in 2027, on strong pricing power and further market share gains. Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

EPS (Rmb)** 1.20 1.48 1.92 2.19

New energy, HVDC and industrial relays were the fastest growing segments, Revenue, net (Rmb mn) 17,202 22,053 25,631 28,345