Analyst initiates coverage on Farsoon Technologies (688433) with buy rating on industrial AM leadership

Guotai Junan Securities issued its first coverage report on Farsoon Technologies (SSE: 688433), assigning an overweight rating with a target price of RMB113.4 based on a 2026 P/E of 31.5x. The brokerage forecasts EPS of RMB0.36, RMB0.52, and RMB0.69 for 2026 through 2028. Farsoon's 2025 revenue reached RMB715 million, up 45.43% year over year, with a 22.56% gross margin. Net profit attributable to shareholders was RMB69.01 million, up 2.68%, while non-recurring net profit rose 4.75% to RMB57.43 million.

Farsoon builds both metal LPBF (SLM) and polymer SLS systems alongside materials and process services, placing it among China's leading industrial AM equipment makers. Recent application work spans an aerospace materials collaboration producing dense Fe-Mn-Al-Si and Fe-Mn-C lattice structures for lightweight design, a new three-way partnership with Solize Partners and Japan 3D Printer targeting large-format laser powder bed solutions for automakers, an existing tie with Volkswagen China, and academic use of the FS191M system by Tsinghua University's mechanical engineering department. Revenue growth well outpacing net profit growth points to margin pressure even as Farsoon widens its addressable base across aerospace research, automotive tooling, and consumer prototyping.