Risk factor
Very vulnerable to price shocks
Profitability factor
Strong margins and returns
About
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. It offers a range of relays, including signal relays, automotive relays and modules, power relays, industrial relays, latching relays, new energy relays, etc. The company also provides low-voltage devices, such as intelligent circuit breakers, contactors, motor protectors, automatic transfer switching breakers, etc. Hongfa Technology Co., Ltd. was formerly known as WuHan LiNuo Solar Energy Group Co., Ltd. and changed its name to Hongfa Technology Co., Ltd. in December 2012. The company was founded in 1984 and is based in Xiamen, China.
Company Valuation
From both historical and forecast perspectives, the stock is fairly priced compared to similar stocks. Specifically, the stock is fairly valued on P/E, neutral on EV/EBIT