Union Precision(SH:688210) China Post Securities·2025-07-30 05:23Investment Rating - The report assigns a "Buy" rating for Tonglian Precision (688210) with a first coverage [1]. Core Views - The rapid evolution of generative AI technology is driving a new wave of hardware innovation in consumer electronics and smart devices. This includes advancements in foldable smartphones, AI personal computers, smart glasses, and wearable devices, which enhance user experience and stimulate consumer demand [4]. - The company is expanding its precision manufacturing capabilities to meet the demand for lightweight and high-performance components, utilizing new materials and technologies such as 3D printing. This positions the company favorably in the market for new smart terminal products [5]. - The company plans to issue convertible bonds to raise up to 595 million yuan, primarily for a new intelligent manufacturing center focused on lightweight materials, which will enhance its role from a traditional component supplier to a comprehensive technology service provider [6]. Financial Projections - Revenue projections for the company are 1.12 billion yuan in 2025, 1.52 billion yuan in 2026, and 2.10 billion yuan in 2027, with net profits of 101.11 million yuan, 193.90 million yuan, and 329.62 million yuan respectively [7][10]. - The company is expected to achieve a revenue growth rate of 44.93% in 2024, followed by 37.62% in 2025, 35.80% in 2026, and 38.30% in 2027 [10][11].