Hwatsing Technology (SH:688120) Chang Jiang Shang Bao·2025-06-30 00:22Core Viewpoint - Huahai Qingke, a leading domestic semiconductor CMP equipment manufacturer, plans to expand its wafer regeneration capacity to seize the opportunity presented by the accelerated expansion of wafer fabs [2][3][4]. Expansion Plans - The company intends to build a wafer regeneration expansion project in Kunshan, Jiangsu, with a total planned capacity of 400,000 wafers per month, and an initial capacity of 200,000 wafers per month, with an investment of no more than 500 million yuan [3][4]. - The construction period for this project is expected to be no more than 18 months [4]. Market Position and Strategy - Huahai Qingke aims to increase its market share in wafer regeneration services, leveraging its competitive edge in advanced process wafer regeneration services and has secured orders from several large key customers [2][5]. - The company has become the largest CMP equipment manufacturer in China and the only one to achieve mass production of 12-inch CMP equipment, holding a 46.7% market share in the 12-inch CMP market as of 2023 [7]. Financial Performance - The company has shown rapid growth in operating performance, with revenue and net profit increasing significantly over the past four years. In 2021, the net profit was 198 million yuan, and it is projected to exceed 1 billion yuan by 2024, representing a growth of over four times [2][12][13]. - Revenue figures for 2022 to 2024 are 1.649 billion yuan, 2.508 billion yuan, and 3.406 billion yuan, reflecting year-on-year growth rates of 104.86%, 52.11%, and 35.81% respectively [12]. R&D Investment - The company invests over 10% of its annual revenue in R&D, with investments from 2021 to 2024 amounting to 119 million yuan, 217 million yuan, 304 million yuan, and 394 million yuan respectively [8][9]. - As of the end of 2024, Huahai Qingke has developed 17 core technologies, with 14 from independent research and development [10]. Synergy and Competitive Advantage - The wafer regeneration business is synergistic with the company's existing equipment business, enhancing customer loyalty and overall competitiveness [6][14]. - The company has achieved significant cost advantages in wafer regeneration by utilizing customized equipment, which reduces capital investment [5].