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World's largest manufacturer of electromagnetic relays, used in appliances, autos, and industrial equipment.
World's largest manufacturer of electromagnetic relays, used in appliances, autos, and industrial equipment.
Sells relays, small switches that let a weak signal control a heavy current, in large volumes to equipment makers who design them into appliances, vehicles and power equipment. Production is largely in China, and customers are spread worldwide.
In one line: China's TE Connectivity/Omron for relays.
Moat: narrow (scale, customer qualification). Global scale and long-standing OEM qualification in a component where switching costs are moderate.
Headquarters: Xiamen, China · Founded: 1984 · Employees: 18,190
Size Hongfa Technology (600885.SS) is a China Industrials company (Electrical Products) with a market value of $7.81B, the 318th largest of 4,839 China companies the cockpit tracks. Shares closed at CN¥33.64 on 6 Nov 2026.
Performance Over six months the shares gained 8.0%, against -24.4% for the median peer and -16.4% for the China market (cap-weighted) — 2nd highest of 20 in its peer set.
Growth Revenue grew 33.9% over the last twelve months (peer median +20.3%); the operating margin is 14.1% (peer median 11.4%).
Valuation It trades at 22.9× forward earnings against a peer median of 14.8× (8th most expensive of 20).
Price implies For today's price to make sense, revenue must grow about 9% a year for seven years (Req g). Recent delivered growth is +17%, so the hurdle is -8 pp: the price already allows for a slowdown.
Capital Return on invested capital runs 5.6 points above its cost of capital (8.3% WACC).
Next results Next results expected around 29 Mar 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | CN¥21.6B | CN¥17.1B | CN¥14.0B | CN¥12.9B | CN¥11.6B |
| Revenue growth | — | +22% | +9% | +11% | — |
| Gross profit | CN¥7.76B | CN¥5.55B | CN¥4.83B | CN¥4.50B | CN¥3.87B |
| EBITDA | n/a | CN¥3.61B | CN¥3.22B | CN¥3.14B | CN¥2.62B |
| Net income | CN¥2.10B | CN¥1.76B | CN¥1.63B | CN¥1.39B | CN¥1.25B |
| Free cash flow | CN¥776M | CN¥1.85B | CN¥1.12B | CN¥1.67B | CN¥131M |
| Capital expenditure | CN¥1.46B | CN¥1.18B | CN¥1.16B | CN¥1.03B | CN¥1.53B |
| Total debt | CN¥3.27B | CN¥2.74B | CN¥4.79B | CN¥3.76B | CN¥3.26B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Hongfa Technology 600885.SS | $7.81B | +8% | +34% | 14% | 22.9× | 9.0% |
| Omron 6645.T | $5.79B | -17% | -2% | 9% | 16.7× | 11.7% |
| TE Connectivity TEL | $59.5B | +1% | +15% | 22% | 15.1× | 8.2% |
| Panasonic 6752.T | $44.5B | -6% | +4% | 8% | 13.5× | 9.8% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | 600885.SS | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +4.2% | -5.6% | 5th highest of 21 |
| 6-month return | +8.0% | -24.4% | 2nd highest of 20 |
| Distance from 52-week high | -16.8% | -44.9% | 2nd highest of 21 |
| Revenue growth (TTM) | +33.9% | +20.3% | 7th highest of 21 |
| Operating margin | 14.1% | 11.4% | 9th highest of 21 |
| Forward P/E | 22.9× | 14.8× | 8th most expensive of 20 |
| Growth the price implies (Req g, 7 yrs) | 9.0% | 18.7% | 4th least demanding of 9 |
| Growth delivered (Del g) | +17.2% | +14.4% | 4th highest of 9 |
| Hurdle (Req g minus delivered) | -8.2 pp | -3.7 pp | 4th least demanding of 9 |
| ROIC minus cost of capital | +5.6 pp | +1.1 pp | 9th highest of 21 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Hongfa Technology 600885.SS | China | $7.81B | +8% | +34% | 14% | 22.9× | 9.0% | +17.2% |
| Zhuzhou CRRC Times Electric 688187.SS | China | $7.80B | -3% | +12% | 14% | 14.6× | n/a | n/a |
| Zhejiang Chint Electrics 601877.SS | China | $7.97B | -24% | +4% | 14% | 10.1× | -8.3% | +12.1% |
| Bizlink 3665.TW | Taiwan | $8.00B | -54% | +33% | 17% | 14.2× | 5.3% | +25.9% |
| Havells India HAVELLS.NS | India | $7.47B | -11% | +16% | 7% | 44.0× | 39.8% | +16.6% |
| Shenzhen Kedali Industry 002850.SZ | China | $7.46B | -9% | +40% | 12% | 22.2× | n/a | n/a |
| Ngk 5333.T | Japan | $7.43B | -13% | +10% | 16% | 13.1× | 4.4% | +8.2% |
| Sigenergy Technology 6656.HK | Hong Kong | $8.31B | -51% | +577% | 36% | 11.0× | n/a | n/a |
| Goldenmax International 002636.SZ | China | $7.20B | +47% | +79% | 30% | n/a | 24.4% | +4.4% |
| China XD Electric 601179.SS | China | $8.51B | -35% | +7% | 8% | 36.0× | n/a | n/a |
| SUPCON Technology 688777.SS | China | $8.58B | -9% | -6% | -3% | 116.4× | n/a | n/a |
| Goldwind Science & Technology 2208.HK | Hong Kong | $8.58B | -57% | +24% | 6% | 7.2× | n/a | n/a |
| Anji Microelectronics Technology (Shanghai) 688019.SS | China | $7.05B | +7% | +35% | 32% | 31.6× | 28.1% | +42.8% |
| Anker Innovations Technology 0668.HK | Hong Kong | $8.68B | n/a | +28% | 11% | 14.8× | 22.2% | +25.8% |
| Furukawa Electric 5801.T | Japan | $8.75B | -54% | +13% | 6% | 11.9× | n/a | n/a |
| Shanghai Putailai New Energy Technology 603659.SS | China | $6.87B | -41% | +44% | 14% | 14.2× | n/a | n/a |
| Nkt A/s NKT.CO | Denmark | $6.73B | -15% | +2% | 7% | 26.4× | n/a | n/a |
| Shenzhen Megmeet Electrical 002851.SZ | China | $6.55B | -38% | +29% | 1% | 60.9× | n/a | n/a |
| Ecopro BM 247540.KS | South Korea | $6.53B | -60% | -4% | 6% | 965.8× | n/a | n/a |
| Hunan Yuneng New Energy Battery Material 301358.SZ | China | $6.46B | -50% | +130% | 9% | 7.8× | n/a | n/a |
| Smiths SMIN.L | United Kingdom | $9.45B | +5% | -34% | 16% | 22.6× | 15.2% | -4.2% |