Shanghai Friendess(SH:688188) Shenwan Hongyuan Securities·2026-03-19 07:26Investment Rating - The report maintains a "Buy" rating for the company [6][7]. Core Viewpoints - The company is positioned as a leader in the laser cutting industry, with a strong market share in the domestic low to medium power segment. It is expanding into intelligent welding and precision processing, which are expected to drive future growth [6][13]. - The company's revenue is projected to grow at a CAGR of 38.56% from 2018 to 2024, with net profit growing at a CAGR of 36.04% during the same period. The gross margin is expected to remain around 80% and net margin above 50% [6][21][23]. Summary by Relevant Sections Company Overview - The company, established in 2007, has transitioned from a focus on 3D dispensing control systems to laser cutting motion control systems since 2012. It went public in 2019 and has since expanded into intelligent welding and precision processing [13][14]. Cutting Business - The laser cutting industry is experiencing rapid growth driven by high power, export demand, and technological advancements. The total demand for laser cutting systems and heads is expected to exceed 6 billion by 2025 [6][27]. - The company maintains a leading position in the domestic market, with a significant share in the low to medium power segment. It is enhancing its market capacity by building high ecological barriers and improving average selling prices (ASP) [6][27]. Intelligent Welding - The intelligent welding sector is poised for growth due to the demand for automation and cost reduction. The company is leveraging its expertise in cutting to expand into this area, particularly in the construction and shipbuilding sectors [6][9]. - The anticipated demand for intelligent welding equipment could exceed 340,000 units in the future [6][9]. Precision Business - The company is focusing on micro-processing, which is expected to become a new growth engine as the manufacturing industry shifts towards higher precision requirements [6][9]. Financial Data and Profit Forecast - Revenue projections for 2024 to 2027 are as follows: 1,735 million in 2024, 2,196 million in 2025, 2,702 million in 2026, and 3,359 million in 2027, with respective growth rates of 23.3%, 26.5%, 23.0%, and 24.3% [5][7]. - The expected net profit for the same period is projected to be 883 million in 2024, 1,109 million in 2025, 1,366 million in 2026, and 1,700 million in 2027, with growth rates of 21.1%, 25.7%, 23.1%, and 24.4% [5][7]. Valuation - The company's current stock price corresponds to a PE ratio of 37, 30, and 24 for the years 2025 to 2027, respectively. This is significantly lower than the average PE ratios of comparable companies [7][6].