Union Precision(SH:688210) SINOLINK SECURITIES·2025-02-21 03:23Investment Rating - The report maintains a "Buy" rating for the company, expecting significant growth in the coming years [4]. Core Insights - The company has established a solid technical foundation in the smart glasses sector, particularly in precision structural components, and aims to expand its technology applications in the smart wearable field [1]. - The synergy between MIM and non-MIM businesses is driving the company's growth, with a revenue increase of 60.91% year-on-year to 592 million RMB in the first three quarters of 2024 [2]. - The company is increasing its R&D investment to explore new materials and processes, focusing on precision components and automation, which will support its strategic development [3]. Summary by Sections Financial Performance - In 2024, the company is projected to achieve a revenue of 771 million RMB, with a growth rate of 37.29% [7]. - The net profit attributable to the parent company is expected to reach 85 million RMB in 2024, reflecting a year-on-year growth of 44.66% [7]. - The company reported a net profit of 52 million RMB in the first three quarters of 2024, a 124.30% increase compared to the previous year [2]. Business Development - The company is diversifying its material usage in MIM, with a focus on magnetic functional materials and high-strength alloy materials, targeting applications in foldable smartphones, AI glasses, automotive, and medical devices [3]. - The production capabilities are being enhanced through the integration of CNC, laser processing, and precision injection molding to meet diverse customer needs [2]. Future Projections - The forecasted net profits for 2024, 2025, and 2026 are 0.85 billion RMB, 1.31 billion RMB, and 1.88 billion RMB, respectively, indicating a strong growth trajectory [4]. - The company’s P/E ratios for the next three years are projected to be 42, 27, and 19 times, suggesting an attractive valuation as earnings grow [4].