Shanghai Friendess(SH:688188) HUAXI Securities·2025-04-10 06:15Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company reported a rapid growth in performance, with a focus on expanding laser cutting applications [2] - Revenue for 2024 reached 1.735 billion yuan, a year-on-year increase of 23%, with Q4 revenue at 435 million yuan, up 5% year-on-year [3] - The company is expected to continue its revenue growth trajectory in 2025, driven by recovering demand in steel construction and shipbuilding industries [3] Revenue Summary - The company achieved significant revenue growth in various segments: - Flat solutions: 1.125 billion yuan, up 12% year-on-year - Pipe solutions: 380 million yuan, up 38% year-on-year - 3D solutions: 36.78 million yuan, up 410% year-on-year - Automated piercing revenue reached 495 million yuan, up 44% year-on-year [3] Profit Summary - The company's net profit attributable to shareholders was 883 million yuan, a year-on-year increase of 21%, with a net profit margin of 53.70% [4] - The gross profit margin for 2024 was 79.94%, remaining stable year-on-year [4] - The company has seen a significant increase in the profitability of its cutting head business, benefiting from cost optimization and in-house production of components [4] Future Outlook - The company is expected to see continued growth in revenue and profit, with projected revenues of 2.213 billion yuan in 2025 and 2.817 billion yuan in 2026, representing year-on-year growth of 28% and 27% respectively [6] - The earnings per share (EPS) is projected to be 5.34 yuan in 2025 and 6.77 yuan in 2026 [6] Industry Insights - The smart welding market in China has a potential demand of approximately 10.7 billion yuan, with the company establishing strong partnerships with major steel structure manufacturers [5] - The company is also expanding its capabilities in precision processing and laser technology, enhancing its competitive edge in the market [5]