Guojin Securities: Grant a Buy rating to Anfu Technology

Guojin Securities Co., Ltd. Zhao Zhongping, Wang Gang, Cai Runze recently conducted research on Anfu Technology and published the research report “Export Growth Drives Revenue Increase, Shareholding Enhancement Boosts Profitability,” giving Anfu Technology a “Buy” rating.

Anfu Technology (603031)

On March 9, 2026, the company released its 2025 annual report. In 2025, the company achieved revenue of 4.77 billion yuan, a year-on-year increase of 2.9%, and net profit attributable to shareholders of 230 million yuan, a year-on-year increase of 34.4%. In Q4 2025, revenue was 1.17 billion yuan, up 11.7% year-on-year, and net profit attributable to shareholders was 50 million yuan, up 182.9% year-on-year.

Operational Analysis

Export business breakthrough of Nanfu drives scale growth, with steady profit performance. In 2025, Anfu’s overseas revenue reached 1.14 billion yuan, a significant increase of 44% year-on-year, mainly due to Nanfu’s continuous expansion into the TOB market and growth in OEM battery exports. Nanfu achieved a net profit of 990 million yuan, up 8.1% year-on-year, with a net profit margin of 20.7%, an increase of 1 percentage point. By product category, alkaline batteries revenue was 3.94 billion yuan, up 10.0%; carbon batteries revenue was 370 million yuan, up 6.9%; other batteries totaled 210 million yuan, up 3.6%.

Significant increase in profit margins due to higher shareholding ratio, greatly enhancing profitability. For the full year 2025, the company’s gross profit margin was 49.4%, up 0.6 percentage points year-on-year, indicating improved profitability, mainly due to 1) the substantial growth in OEM exports of alkaline batteries, strengthening scale effects, and 2) the structural impact of ceasing Red Bull agency business, which had low gross margins. In Q4 2025, net profit attributable to shareholders surged 182.9%, mainly driven by the company’s continuous efforts to recover Nanfu equity. In November 2025, the company’s shareholding in Nanfu increased to 46%, significantly boosting net profit. Regarding expense ratios, in 2025, the company’s selling, management, R&D, and financial expenses were 18.6%, 5.1%, 2.6%, and 0.7%, respectively, with YoY changes of +0.09, -0.01, -0.38, and +0.2 percentage points, indicating good cost control. Under these combined effects, the company’s full-year 2025 net profit margin attributable to shareholders was 4.7%, up 1.1 percentage points year-on-year.

Profit Forecast, Valuation, and Rating

Nanfu’s core business remains stable, providing steady cash flow and high dividends. Growth is driven by battery exports, power banks, and other new businesses, with potential for further increase in Nanfu’s holding ratio and profit contribution. The second curve businesses, such as optical modules, have ample potential, with industrialization progressing steadily and long-term growth space. We forecast the company’s net profit attributable to shareholders to be 460 million, 540 million, and 600 million yuan in 2026/2027/2028, respectively, representing YoY increases of 104.5%, 16.0%, and 12.7%. The current stock price corresponds to PE ratios of 29.6x, 25.5x, and 22.7x for these years, maintaining a “Buy” rating.

Risk Tips

Risks include fluctuations in raw material prices, product substitution risks, and slower-than-expected progress in mergers and acquisitions.

Latest profit forecast details are as follows:

In the past 90 days, six institutions have issued ratings for this stock, with five rating it as “Buy” and one as “Accumulate”; the average target price among institutions over this period is 64.49 yuan.

The above content is compiled by Securities Star based on publicly available information, generated by AI algorithms (Wangxin Algorithm Backup 310104345710301240019), and does not constitute investment advice.