Shanghai Friendess(SH:688188) Xin Lang Cai Jing·2025-04-23 12:31Revenue Performance - In Q1 2025, the company achieved revenue of 496 million yuan, representing a year-on-year growth of 30%, exceeding market expectations [1] - The growth rate in Q1 2025 marked a significant rebound after four consecutive quarters of declining revenue growth, indicating a turning point [1] - Key application areas driving revenue growth include: 1) Flat solutions: Steady growth in medium power and unexpected increase in ultra-high power demand, optimizing product structure [1] 2) Pipe solutions: Accelerated laser penetration, continuing rapid growth [1] 3) 3D solutions: High demand due to a low base, maintaining high prosperity [1] - The outlook for 2025 is positive, with expectations of continued rapid revenue growth driven by ultra-high power demand and recovery in steel construction and shipbuilding industries [1] Profit Performance - In Q1 2025, the net profit attributable to shareholders was 255 million yuan, and the net profit excluding non-recurring items was 241 million yuan, both showing year-on-year increases of 32% and 31%, respectively, surpassing market expectations [2] - The sales net profit margin was 52.25%, a decrease of 1.50 percentage points year-on-year [2] - The gross profit margin for Q1 2025 was 77.76%, down 1.55 percentage points year-on-year but up 2.88 percentage points quarter-on-quarter, maintaining a high level due to product structure adjustments [2] - The operating expense ratio was 22.50%, down 2.40 percentage points year-on-year, reflecting scale effects [2] - Minority shareholder losses decreased to 3.64 million yuan, down 7.63 million yuan year-on-year, contributing to profit growth [2] Industry Trends - The intelligent welding sector is entering a year of significant growth, with potential demand in China's steel structure industry estimated at approximately 10.7 billion yuan [3] - The company has established close partnerships with major steel structure manufacturers and has a clear first-mover advantage in the market [3] - In precision processing, the company is developing high-performance mirror control systems and expanding capabilities with new technology solutions [3] Investment Outlook - The company has revised its revenue forecasts for 2025-2027 to 2.275 billion, 2.955 billion, and 3.776 billion yuan, reflecting year-on-year growth rates of 31%, 30%, and 28% respectively [4] - The net profit forecasts for the same period have been adjusted to 1.133 billion, 1.467 billion, and 1.870 billion yuan, with year-on-year growth rates of 28%, 29%, and 28% [4] - The earnings per share (EPS) estimates for 2025-2027 are now 5.52, 7.14, and 9.10 yuan, with corresponding price-to-earnings (PE) ratios of 34, 27, and 21 times based on the stock price of 190.15 yuan on April 22, 2025 [4] - The company maintains a "buy" rating based on its competitive position in the laser cutting market and its platform expansion capabilities [4]