Company Profile · Industrials

Hongfa Technology Co Ltd

600885 · Shanghai
Industry
Electronic Connectivity & Sensing
Exchange
Shanghai
Country
China
IPO date
Feb 5, 1996
Employees
18,190
Website
www.hongfa.com
Price at Publication
¥34.73
Sep 16, 2026 close
Fair Buy
≤ ¥25
Margin-of-safety entry
Baillie Growth Score
45/100
Weak
Buffett Score
79/100
Strong
Intrinsic Value · Three-Tier Range Price at publication ¥34.73 · Within the fair intrinsic-value range

Composite valuation range · conservative ¥23–¥25 / fair ¥34–¥49 / optimistic ¥61–¥67. At the publication price of ¥34.73 (Sep 16, 2026), Within the fair intrinsic-value range.

Financial snapshot
Market capCN¥51.89B
Revenue (TTM)CN¥19.88B
EBITDACN¥3.85B
Profit margin9.81%
ROE17.11%
P/E (TTM)25.99
Forward P/E20.88
EPSCN¥1.29
Dividend yield1.04%
52-week rangeCN¥24.69 – CN¥40.41

Data from EODHD, shown in the reporting currency; for reference only, not investment advice.

About the company

Hongfa Technology Co., Ltd. manufactures and supplies relays, medium and low voltage electrical appliances, high and low voltage complete equipment, connectors, capacitors, precision parts, and automation equipment worldwide. The company offers power, automotive, high voltage dc, latching, signal, high-frequency, reed, industrial, and solid-state relays; relay socket and module; application electronic modules; low-voltage devices, such as control appliance, distribution appliance, and terminal apparatus; and fuse, vacuum interrupters, and automation equipment. It provides film capacitor applications, such as reactive compensation, AC filter, lighting, telecommunication, home appliance, power supply, industrial controls, etc. The company was formerly known as WuHan LiNuo Solar Energy Group Co., Ltd. Hongfa Technology Co., Ltd. was founded in 1984 and is headquartered in Xiamen, China.

Background

History

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Industry position

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Research on this stock
45/100 Hold Hongfa Technology: 3.464bn Relays, a 32% Top Line That Yielded CNY 114m of Cash, and CNY 34.73 at the Hold-Band Floor Hongfa Technology is the world's largest relay manufacturer, shipping 3.464bn relays for CNY 15.703bn of 2025 relay revenue, about 91% of group sales and an inferred 26% to 29% of the global relay market. H1 2026 revenue grew 32.05% to CNY 11.022bn, but group gross margin fell 1.56 points to 32.68% as raw materials reached 78.06% of relay production cost, and operating cash flow collapsed 86.33% to CNY 114m against CNY 1.156bn of attributable profit. Rating Hold: at CNY 34.73 and about 29.6x clean trailing earnings the shares sit at the floor of the CNY 34-49 acceptable-hold band and above the CNY 30-32 conservative value, so the margin of safety belongs to buyers at CNY 23-25, not to buyers today. Hongfa Technology Co., Ltd.600885 · ShanghaiElectronic Connectivity & SensingSep 16, 2026