Shanghai Friendess(SH:688188) Guotou Securities·2025-09-09 06:34Investment Rating - The investment rating for the company is "Buy-A" with a 6-month target price of 159.10 CNY [5][8]. Core Views - The company has demonstrated steady revenue growth, achieving 1.103 billion CNY in revenue for the first half of the year, a year-on-year increase of 24.89%, and a net profit of 640 million CNY, up 30.32% year-on-year [1][2]. - The growth is attributed to continuous investment in research and development, market expansion, and optimization of product solutions, leading to an increase in overall order volume [2][3]. - The company is focusing on both vertical and horizontal expansion in technology, enhancing its capabilities in laser cutting and intelligent welding, while also addressing industry challenges [2][3]. Financial Performance - For the second quarter, the company reported revenue of 608 million CNY, a 20.92% increase year-on-year, and a net profit of 385 million CNY, up 29.24% year-on-year [2]. - The company expects revenues of 2.125 billion CNY, 2.689 billion CNY, and 3.417 billion CNY for 2025, 2026, and 2027 respectively, with net profits projected at 1.091 billion CNY, 1.349 billion CNY, and 1.685 billion CNY for the same years [8][10]. - The company maintains a leading position in the domestic market for low to medium power laser cutting systems and is the top manufacturer for high-power laser cutting control systems [8]. Research and Development - The company is optimizing its existing technology platforms and focusing on long-term technology planning to ensure the forward-looking and leading nature of its new technology layouts [3]. - Innovations include advanced laser cutting techniques and intelligent welding solutions that enhance production efficiency across various industries [3]. Market Position - The company is recognized as one of the first private enterprises in China to develop complete control systems for fiber laser cutting, maintaining a competitive edge in the market [8].