Core view: The company is a local state-owned enterprise engaged in the development and production of electrical connectors in China. It has more than 60 years of experience in the connector field, leading in technical strength and product capability in the industry.
In the field of communications, the company's high-speed connectors are in a leading position in China. It is one of Huawei's two major domestic suppliers of high-speed backplane connectors. The company is expected to fully benefit from the release of demand for AI computing power connections. In the defense sector, the company is a designated supplier of defense connectors for national space projects. Demand in the defense market is expected to pick up, and the company's defense business is expected to resume good growth.
The company is a local state-owned enterprise engaged in the development and production of electrical connectors in China. It has established an “integrated two-wing” strategic layout with defense as the core and equal emphasis on communications and industry. The company has more than 60 years of experience in the field of connectors. Since 2003, the company has embarked on the path of independent R&D and innovation, gradually forming a pattern centered on the defense, communications and industrial markets, focusing on developing connectors and related products that meet market needs.
In the communications field, the company has achieved coverage of many mainstream communication equipment manufacturers at home and abroad, including Huawei. The company's communication connection products include products such as high-speed connectors, printed board connectors, power connectors, RF connectors, optical communication connectors, and cable components. The company's high-speed connectors are in a leading position in the industry, and have formed a comprehensive series of high-speed backplane connector products with various speeds, and the performance has reached the level of leading enterprises in the same industry abroad. Currently, it is mainly promoting 56Gbps products, expanding 112Gbps products, and increasing the product transmission rate to 224Gbps in 2023. In the first half of 2023, the company will begin small-batch production of 112G high-speed backplane products based on orthogonal architectures. As one of the two major domestic suppliers of Huawei's high-speed backplane connectors, it and Qinghong Electronics each account for 20%-30% of Huawei's share, and the share is expected to increase further in the future.
In the field of defense, the company is a designated supplier of defense connectors for national space projects. The company has leading advantages in system interconnection technology, environmentally resistant connector technology, etc., and has 10 invention patents related to system interconnection technology and 9 utility model patents. It has become a designated supplier for national space projects. It has successively provided a large number of supporting equipment for space launch systems, launch vehicle systems, space suit systems, manned spacecraft systems, measurement and control communication systems, space application systems, space test systems, and landing systems.
In the industrial field, the company focuses on developing automotive high-voltage connectors and wiring harnesses, charging interface connectors, BDU/PDU charging and distribution system assemblies and control modules, and has developed in-depth cooperation with manufacturers such as BYD and Wuling. Since 2019, the company has provided PDU charging and distribution system assemblies for SAIC-GM-Wuling, and has expanded the product line of supporting high-voltage wiring harnesses. Since 2021, Huafeng Technology has reached a long-term cooperative relationship with BYD to supply PDU charging and distribution system assemblies in batches, and further increased its market share in BDU/PDU charging and distribution system assembly products in 2022. In the first half of 2023, the company obtained the supply qualification of Changan Automobile. For the automotive high-speed field, the company also already has a product line, and is currently developing customers for sample verification.
Risk warning: Communications business development falls short of expectations; defense business development falls short of expectations; new energy business development falls short of expectations; gross margin falls short of expectations, etc.