FREEWON(SH:688678) Zheng Quan Zhi Xing·2025-05-29 09:57Company Overview - The company, Fuliwang Precision Electromechanical (China) Co., Ltd., primarily engages in the manufacturing of precision metal components, including precision springs, special-shaped springs, and various other precision parts [6][7] - As of March 2025, the company's total assets amounted to 3.674 billion yuan, with equity of 1.910 billion yuan and a debt-to-asset ratio of 48.00% [8][19] - The company has a diverse product range that serves various sectors, including 3C electronics, automotive, and power tools [6][10] Financial Performance - In 2024, the company reported a revenue of 1.285 billion yuan, reflecting a significant increase compared to previous years [19] - The gross profit margin was recorded at 24.41%, a decrease of 3.91 percentage points from 2023, primarily due to losses in the company's diamond wire business [19] - The company’s R&D investment reached 122 million yuan in 2024, marking a year-on-year growth of 24.22% [3][5] Market Position and Competitiveness - The company maintains a competitive edge in the precision metal components market, supported by its advanced manufacturing technologies and strong partnerships with well-known enterprises in the 3C and automotive sectors [3][10] - The company’s products are essential in various applications, including computers, communications, consumer electronics, and automotive components, which enhances its market presence [6][10] - The company is positioned to benefit from the recovery in downstream demand and the expansion of new products [3][10] Industry Analysis - The precision metal components manufacturing industry is experiencing challenges due to a slowdown in global consumer electronics demand, but there are signs of recovery driven by emerging technologies like AI and 5G [10][12] - The automotive sector, particularly in new energy vehicles, is witnessing significant growth, with production and sales reaching historical highs in 2024 [13] - The industry is characterized by a low concentration level, with many companies operating independently across various segments, leading to a diverse competitive landscape [14][15] Risks and Challenges - The company faces potential risks from fluctuating trade environments and exchange rates, particularly as 50.59% of its revenue comes from overseas markets [5][10] - The diamond wire business has been adversely affected by the downturn in the photovoltaic industry, leading to significant losses and impacting overall profitability [5][19] - The company has a substantial financing requirement due to ongoing and planned projects, which may affect its short-term debt levels [5][19]