FREEWON(SH:688678) Guoxin Securities·2024-02-26 16:00Investment Rating - The investment rating for the company is "Buy (Maintain)" [4] Core Views - The company is expected to achieve a revenue of 994 million yuan in 2023, reflecting a year-on-year growth of 7.28%, while the net profit is projected to be 90.4 million yuan, indicating a significant decline of 44.16% [8] - The company has a strong order backlog for its diamond wire products, which is expected to drive revenue growth [2] - The company is benefiting from the successful introduction of new product numbers for major clients, particularly Apple, which has seen a slight increase in smartphone sales and a significant launch of new products [8] - The photovoltaic diamond wire revenue has shown substantial growth, with a 90.06% increase year-on-year in the first half of 2023 [8] Financial Forecasts and Metrics - Revenue (in million yuan) is projected to grow from 726 in 2021 to 1,960 in 2025, with a compound annual growth rate (CAGR) of approximately 24.2% [3] - Net profit (in million yuan) is expected to fluctuate, with a forecast of 90.4 in 2023, recovering to 217 by 2025 [3] - Earnings per share (EPS) is projected to increase from 0.70 in 2021 to 1.25 in 2025 [3] - The company's EBIT margin is expected to stabilize around 13.6% by 2025, after a dip to 10.2% in 2023 [3] - The price-to-earnings (P/E) ratio is projected to decrease from 37.3 in 2023 to 15.5 in 2025, indicating a potential undervaluation by 2025 [3] Market Performance - The company's closing price is currently at 15.52 yuan, with a market capitalization of 2,705 million yuan [4] - The stock has seen a 52-week high of 25.47 yuan and a low of 9.22 yuan, indicating significant volatility [4]