Shanghai Friendess(SH:688188) HUAXI Securities·2025-09-05 13:31Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company reported a strong revenue growth of 25% year-on-year in H1 2025, with Q2 revenue reaching 608 million, also up 21% year-on-year, aligning with market expectations [3] - The net profit for H1 2025 was 640 million, a 30% increase year-on-year, with a net profit margin maintained at a high level of 59.53% [4] - The company is expected to benefit from the rapid penetration of laser cutting applications, particularly in the steel structure and shipbuilding industries, leading to continued revenue growth [3] Summary by Sections Revenue Performance - H1 2025 revenue reached 1.103 billion, with Q2 contributing 608 million, reflecting a 25% and 21% year-on-year growth respectively [3] - Revenue from flat solutions was 677 million, while pipe solutions generated 237 million, both expected to continue their rapid growth [3] - The three-dimensional solutions segment achieved 34 million, nearing the total revenue of 37 million for the entire year of 2024, benefiting from increased penetration in heavy industries [3] Profitability - H1 2025 net profit was 640 million, with a year-on-year increase of 30%, and Q2 net profit was 385 million, up 29% [4] - The sales gross margin for H1 2025 was 78.83%, slightly down by 2.45 percentage points year-on-year, but Q2 saw a recovery with a gross margin of 79.71% [4] - The company maintained a high net profit margin, with a sales net profit margin of 59.53% [4] Future Outlook - The company anticipates continued revenue growth driven by overseas demand and recovery in the steel structure market, alongside the introduction of high-power and three-dimensional cutting solutions [3] - The potential market for intelligent welding control systems in China's steel structure industry is estimated at around 10.7 billion, indicating significant growth opportunities [5] - The company is also expanding its capabilities in precision processing and laser technology, further enhancing its competitive edge [5] Financial Projections - Revenue forecasts for 2025-2027 are set at 2.275 billion, 2.955 billion, and 3.776 billion, representing year-on-year growth rates of 31%, 30%, and 28% respectively [7] - Adjusted net profit forecasts for the same period are 1.141 billion, 1.474 billion, and 1.880 billion, with corresponding growth rates of 29% [7] - The earnings per share (EPS) for 2025-2027 are projected to be 3.96, 5.11, and 6.52 respectively, with a price-to-earnings (PE) ratio of 35, 27, and 21 times [7]