TacticScaleWhat Hongfa Technology (宏发股份) Does & How It Makes Money (600885.SS)
Updated October 2026 · reflects Hongfa Technology's latest reported financials
Chinese maker of relays, electrical components and power equipment. It earns money by making and selling relays, low-voltage devices, capacitors, connectors and related parts to manufacturers and power customers across the automotive, appliance, industrial, telecom and energy markets.
How Hongfa Technology makes money
It earns money by making and selling relays, low-voltage devices, capacitors, connectors and related parts to manufacturers and power customers across the automotive, appliance, industrial, telecom and energy markets.
What Hongfa Technology does
Hongfa Technology, founded in 1984 and headquartered in Xiamen, China, is a manufacturer of relays and related electrical components sold worldwide. Its relay range covers power, automotive, high-voltage DC, latching, signal, high-frequency, reed, industrial and solid-state types, plus relay sockets, modules and application electronic modules. Beyond relays, the company supplies medium- and low-voltage electrical appliances such as control, distribution and terminal devices, along with high- and low-voltage complete equipment, fuses, vacuum interrupters, connectors, precision parts and automation equipment. Its film capacitors are used in reactive power compensation, AC filtering, lighting, telecom, home appliances, power supplies and industrial controls. The company was formerly known as WuHan LiNuo Solar Energy Group Co., Ltd.
Products & services
- Power and automotive relays
- High-voltage DC relays
- Signal, reed and solid-state relays
- Low-voltage control and distribution appliances
- Film capacitors
- Vacuum interrupters and fuses
宏发股份是做什么的？
宏发科技股份有限公司成立于1984年，总部位于中国厦门，是一家面向全球的继电器及电气元器件制造商。产品覆盖功率、汽车、高压直流、磁保持、信号、高频、干簧、工业及固态继电器，以及继电器插座、模块和应用电子模块。 除继电器外，公司还提供控制电器、配电电器、终端电器等中低压电器，高低压成套设备，以及熔断器、真空灭弧室、连接器、精密零件和自动化设备。其薄膜电容器用于无功补偿、交流滤波、照明、通信、家电、电源和工业控制等领域。公司前身为武汉力诺太阳能集团股份有限公司。
What is Hongfa Technology worth?
On an owner-earnings DCF, Hongfa Technology's most-likely value is about ¥8 versus a recent price near ¥32 (315% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~¥3) with a margin of safety — so the honest verdict here is “Stretched — richly priced.” Fair value earns its keep only at the extremes, not in the wide middle.
Today's $32 is above even the optimistic Bull case ($13) — the market expects faster, longer growth than modeled here. Expensive unless that extra growth actually shows up.
⚠ Capital-intensive — this business reinvests heavily, so free cash flow runs well below its earnings. Fair value here is built on free cash flow, which understates owner earnings for reinvestment-heavy companies — read it as conservative.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
Related companies
Zhuzhou Hongda Electronics Corp.,Ltd (300726.SZ) · Guangdong Fenghua Advanced Technology (Holding) (000636.SZ) · Xiamen Faratronic (600563.SS) · Shenzhen Kaifa Technology (000021.SZ) · Shanghai Hajime Advanced Material Technology (301000.SZ)