Huarui Precision(SH:688059) Xin Lang Cai Jing·2025-09-25 06:28Industry Overview - Cutting tools are essential in mechanical manufacturing, accounting for approximately 90% of machining workload, and are indispensable in sectors such as automotive, molds, general machinery, energy equipment, rail transportation, and aerospace [1] - The market size of China's cutting tool industry showed a fluctuating growth trend from 2016 to 2023, reaching 49.2 billion yuan in 2023, with a growth rate of 6.12% [1] - The share of imported cutting tools in total consumption decreased from 37% in 2016 to 21% in 2023, indicating a significant acceleration in the localization process [1] Company Positioning - Huari Precision has ranked second in the production of hard alloy CNC blades in China in 2023, leveraging its mastery of four core technologies: substrate materials, groove structures, precision forming, and surface coating [1] - The company has introduced cutting tools for processing heat-resistant alloys, titanium alloys, and carbon fiber composites, catering to stringent requirements in high-end fields such as national defense and aerospace [1] - Huari Precision is transitioning from a single hard alloy tool manufacturer to a comprehensive cutting solution provider, aiming for breakthroughs in new materials, industries, and markets [2] R&D and Innovation - The company emphasizes "technological breakthroughs" as its core strategy, with significant R&D investment and collaboration with academic institutions driving product iteration [3] - As of June 30, 2025, the company has applied for a total of 118 domestic and international intellectual property rights, with 89 authorized and 67 effective patents [3] - Ongoing projects include the development of cutting tools for difficult-to-machine materials in aerospace, modifications for high-temperature cutting of hard materials, and the establishment of a hard alloy material information database [3] Financial Projections - Revenue forecasts for the company from 2025 to 2027 are projected at 0.951 billion, 1.179 billion, and 1.447 billion yuan, respectively, with corresponding EPS of 1.84, 2.46, and 3.22 yuan [4] - The current stock price corresponds to PE ratios of 42.6, 31.9, and 24.3 times for the years 2025, 2026, and 2027, respectively, reflecting strong core competitiveness and significant potential for domestic high-end tool replacement [4]