Shanghai Friendess(SH:688188) Soochow Securities·2024-03-19 16:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company's revenue for 2023 reached 1.407 billion yuan, a year-on-year increase of 56.61%, with Q4 revenue at 416 million yuan, up 69.07% year-on-year [2][3] - The high-power business and the progress in intelligent welding are driving significant revenue and profit growth, with expectations for continued high growth in 2024 [2][3] - The gross profit margin improved to 80.33% in 2023, up 1.36 percentage points year-on-year, despite a slight decline in net profit margin due to increased share-based payment expenses [2][3] Revenue and Profit Forecast - The company forecasts net profit for 2024 and 2025 at 1.040 billion yuan and 1.377 billion yuan respectively, with a new forecast for 2026 at 1.775 billion yuan [2][3] - The current market valuation corresponds to P/E ratios of 40, 30, and 23 for 2024, 2025, and 2026 respectively [2][3] Business Segments Performance - The revenue breakdown for 2023 shows: - Adaptive systems: 170 million yuan, down 20.63% year-on-year - Board card systems: 374 million yuan, up 67.01% year-on-year - Bus systems: 327 million yuan, up 93.93% year-on-year - Cutting heads: 335 million yuan, up 106.51% year-on-year - Others: 190 million yuan, up 69.20% year-on-year [2][3] Intelligent Welding Development - The intelligent welding system is expected to open a second growth curve for the company, with significant advancements in technology and strategic partnerships indicating strong market potential [2][3]