Huarui Precision(SH:688059) ZHONGTAI SECURITIES·2026-01-23 02:40Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the coming months [3][8][12]. Core Views - The company is expected to achieve significant growth in 2025, with a projected net profit of 1.80 to 2.00 billion yuan, representing a year-on-year increase of 68.29% to 86.99% [5]. - The growth is attributed to three main factors: recovery in downstream demand, price increases due to rising raw material costs, and improved operational efficiency leading to lower expense ratios [5][6]. - The company is well-positioned to benefit from industry consolidation and domestic substitution trends, particularly in the context of high tungsten carbide prices [6][7]. - The introduction of AI industrial software is expected to create a second growth curve for the company, enhancing its profitability and operational efficiency [7][8]. Financial Summary - The company forecasts revenue growth from 759 million yuan in 2024 to 2.25 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 60% from 2025 to 2026 [3][10]. - The projected net profit for 2025 is estimated at 210 million yuan, with a significant increase to 552 million yuan by 2027 [3][10]. - The price-to-earnings (P/E) ratio is expected to decrease from 44.3 in 2025 to 16.9 in 2027, indicating improving valuation metrics as earnings grow [3][10].