Union Precision(688210) 国金证券·2025-02-21 03:03Investment Rating - The report maintains a "Buy" rating for the company, expecting significant growth in the coming years [4]. Core Insights - The company has established a solid technical foundation in the smart glasses sector, particularly in precision structural components, and aims to expand its technology applications in the wearable device field [1]. - The synergy between MIM and non-MIM businesses is driving the company's growth, with a revenue increase of 60.91% year-on-year to 592 million RMB in the first three quarters of 2024, and a net profit increase of 124.30% to 52 million RMB [2]. - The company is increasing its R&D investment to explore new materials and processes, focusing on precision components and automation, which will support its strategic development [3]. Summary by Sections Financial Performance - Revenue for 2024 is projected to reach 771 million RMB, with a growth rate of 37.29%, and net profit is expected to be 85 million RMB, reflecting a growth rate of 44.66% [7]. - The company’s gross margin is anticipated to improve as production capacity utilization increases [2]. Future Projections - Forecasted net profits for 2024, 2025, and 2026 are 85 million RMB, 131 million RMB, and 188 million RMB, respectively, with corresponding PE ratios of 41, 27, and 19 [4]. - The company is diversifying its material usage in MIM, with a focus on magnetic functional materials and high-strength alloy materials, extending applications to various sectors including foldable smartphones and medical devices [3].