GenTech(SH:688596) Guohai Securities·2024-06-23 01:30Investment Rating - The report assigns an "Buy" rating for the company, marking its first coverage [1][12]. Core Insights - The company has shown rapid growth in its OPEX business, with a significant increase in new contracts [1][10]. - In 2023, the company achieved a revenue of 3.835 billion yuan, representing a year-on-year growth of 41.78%, and a net profit of 401 million yuan, up 55.10% year-on-year [8][12]. - The company is positioned as a leading supplier of process media systems in China, targeting high-tech industries such as semiconductors and biomedicine, with a broad growth potential in its "three-in-one" business model [12]. Revenue and Profitability - In 2023, the electronic process equipment business generated revenue of 2.9 billion yuan, a 52.76% increase year-on-year, with the GAS BOX segment doubling its revenue [2][8]. - The gas and advanced materials business saw a revenue of 420 million yuan, up 73% year-on-year, while the biopharmaceutical equipment business reported a revenue of 290 million yuan, down 15.68% [2][3]. - The company’s gross margin for 2023 was 27.11%, with a slight year-on-year decrease of 0.35 percentage points, while the net profit margin increased by 0.90 percentage points to 10.47% [3][5]. Future Projections - The company is expected to achieve revenues of 5.346 billion yuan, 7.085 billion yuan, and 9.072 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding net profits of 560 million yuan, 799 million yuan, and 1.061 billion yuan [12][13]. - The projected growth rates for revenue are 39%, 33%, and 28% for the years 2024, 2025, and 2026, respectively [13]. Contract Growth - In 2023, the company signed new contracts worth 6.601 billion yuan, a 60% increase year-on-year, with significant contributions from the integrated circuit and photovoltaic sectors [10][12].