Shanghai Friendess(688188) 东吴证券·2025-04-23 05:07Investment Rating - The investment rating for the company is "Buy" (maintained) [2][11] Core Views - The company reported Q1 2025 earnings that exceeded market expectations, driven by a continuous recovery in domestic demand [2][3] - Revenue for Q1 2025 reached 500 million yuan, representing a year-on-year increase of 30.1%, attributed to market expansion and product structure optimization [3] - The company maintains high profitability with a net profit of 260 million yuan in Q1 2025, up 32.0% year-on-year, benefiting from increased ownership stakes in subsidiaries [4] Financial Performance Summary - Total revenue projections for 2023 to 2027 are as follows: 1,407 million yuan (2023), 1,735 million yuan (2024), 2,095 million yuan (2025), 2,539 million yuan (2026), and 3,093 million yuan (2027), with respective year-on-year growth rates of 56.61%, 23.33%, 20.70%, 21.19%, and 21.85% [1] - Net profit forecasts for the same period are: 728.91 million yuan (2023), 882.71 million yuan (2024), 1,060.92 million yuan (2025), 1,293.34 million yuan (2026), and 1,586.03 million yuan (2027), with year-on-year growth rates of 52.01%, 21.10%, 20.19%, 21.91%, and 22.63% [1] - The company’s gross profit margin for Q1 2025 was 77.8%, with a net profit margin of 52.3%, indicating strong profitability despite slight declines due to accounting adjustments [4] Market Trends and Future Outlook - The company is positioned to benefit from the ongoing recovery in domestic manufacturing, particularly in the flat solution segment, which is expected to maintain steady growth [3] - The smart welding industry is entering a growth phase, with potential expansion into higher-value sectors such as shipbuilding and bridge construction [5] - The company is committed to enhancing its core technologies and increasing R&D investments to ensure sustained competitive advantage and profitability [5]