Huarui Precision(SH:688059) Guotou Securities·2026-01-23 05:52Investment Rating - The report assigns a "Buy-A" rating to the company with a 6-month target price of 126.87 CNY, corresponding to a 40x PE for 2026 [2][3]. Core Insights - The company is expected to achieve a net profit of 180-200 million CNY in 2025, representing a year-on-year increase of 68.29%-86.99% [1]. - The anticipated revenue for 2025-2027 is projected to be 1.05 billion, 1.26 billion, and 1.45 billion CNY, with year-on-year growth rates of 38.3%, 20.0%, and 14.7% respectively [2]. - The company is actively exploring new opportunities in AI software, enhancing its product offerings and operational efficiency [1]. Financial Performance Summary - The company's revenue for 2025 is estimated at 1,050 million CNY, with a net profit of 188 million CNY, reflecting a net profit margin of 17.9% [3][6]. - The projected net profit for 2026 is 302 million CNY, with a net profit margin increasing to 24.0% [3][6]. - The earnings per share (EPS) for 2025 is expected to be 1.98 CNY, increasing to 3.17 CNY in 2026 [3][6]. Market Position and Strategy - The company is positioned as a leading domestic player in the tool manufacturing sector, likely to see an increase in market share and profitability as manufacturing demand stabilizes [2]. - The introduction of the "HuaRui Smart Plus" industrial software is expected to enhance processing efficiency by 5-30%, thereby optimizing management costs and extending tool lifespan [1].