Union Precision(SH:688210) Dongxing Securities·2024-04-30 11:00Investment Rating - The report maintains a "Strong Buy" rating for the company [3][6][21]. Core Insights - The company achieved a revenue of 130 million yuan in Q1 2024, representing a year-on-year growth of 88.03%. The net profit attributable to the parent company was 13.89 million yuan, an increase of 21.46 million yuan compared to the same period last year [1][9]. - The gross profit margin improved by 10.41 percentage points to 40.39% in Q1 2024, driven by a recovery in demand in the consumer electronics sector and effective utilization of production capacity [9][10]. - The company is focusing on high-end product research and development, actively engaging in emerging technologies such as artificial intelligence, foldable screens, and 3D printing [2][10]. Financial Performance Summary - The company is projected to have earnings per share (EPS) of 0.84 yuan, 1.06 yuan, and 1.51 yuan for the years 2024, 2025, and 2026, respectively [3][12]. - Revenue is expected to grow significantly, with forecasts of 920.07 million yuan in 2024, 1,338.69 million yuan in 2025, and 1,896.27 million yuan in 2026, reflecting growth rates of 63.80%, 45.50%, and 41.65% respectively [12][28]. - The net profit attributable to the parent company is anticipated to reach 133.90 million yuan in 2024, with a growth rate of 127.83% [12][28]. Market Trends and Opportunities - The foldable smartphone market is expected to continue its rapid growth, with shipments projected to reach 15.9 million units in 2023, a year-on-year increase of 25%. The demand for MIM technology, particularly for foldable screen components, is anticipated to rise [10]. - The global MIM market is expected to expand to 5.75 billion USD by 2027, indicating a robust growth outlook for the industry [10].