FREEWON(SH:688678) Guoxin Securities·2024-09-24 00:08Investment Rating - The investment rating for the company is "Outperform the Market" [3][14]. Core Views - The company's revenue for 1H24 reached 553 million yuan, a year-on-year increase of 37.93%, with a net profit attributable to the parent company of 45.80 million yuan, up 90.29% year-on-year [1]. - The consumer electronics business has shown significant recovery, while the sapphire wire business is under short-term pressure due to low operating rates in the photovoltaic industry [1]. - The company has successfully introduced new materials and products with major clients, which is expected to support stable growth in the medium term [1]. - The automotive sector has diversified, with a revenue increase of 28.07% year-on-year for precision metal parts [1]. - The company has begun small-scale shipments of tungsten wire, which may enhance its market share as the industry recovers [1]. Financial Summary - For 2024E, the company is projected to achieve a revenue of 1.157 billion yuan, with a net profit of 97.3 million yuan, reflecting a year-on-year growth of 10.0% [2]. - The company's gross profit margin for 2Q24 was 27.10%, showing a year-on-year increase of 3.85 percentage points [1]. - The company’s earnings per share for 2024E is estimated at 0.56 yuan, with a price-to-earnings ratio of 15.6 [2].