Shanghai Friendess(688188)2024-02-24 16:00Investment Rating - The report maintains a "Buy" rating for the company [4][5]. Core Insights - The company reported a revenue of 1.407 billion yuan for the year 2023, representing a year-over-year growth of 56.61%, and a net profit of 724 million yuan, with a year-over-year increase of 50.94% [4]. - In Q4 2023, the company achieved a revenue of 416 million yuan, showing a year-over-year growth of 69.07%, and a net profit of 152 million yuan, with a year-over-year increase of 63.19% [4]. - The company's strong performance is attributed to the explosive growth in high-power and cutting head segments, along with a significant increase in order volume driven by demand for consumables [4][5]. Summary by Sections Market Data - Closing price: 266.44 yuan - Market capitalization: 38,989 million yuan - Price-to-book ratio: 8.2 [2][3]. Financial Performance - Revenue for 2023: 1.407 billion yuan, up 56.61% year-over-year - Net profit for 2023: 724 million yuan, up 50.94% year-over-year - Q4 2023 revenue: 416 million yuan, up 69.07% year-over-year - Q4 2023 net profit: 152 million yuan, up 63.19% year-over-year [4][5]. Business Segments - Cutting business continues to grow rapidly, with high-power laser cutting machines expected to maintain high growth due to power iteration and new industry penetration [4][5]. - The welding business is accelerating, with strategic cooperation established with Honglu Steel Structure, indicating promising future orders [5]. Earnings Forecast and Valuation - The forecast for net profit from 2023 to 2025 is 720 million, 1.025 billion, and 1.465 billion yuan, respectively, with corresponding price-to-earnings ratios of 54, 38, and 27 [5][6].