Hwatsing Technology (SH:688120) Soochow Securities·2024-07-15 03:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to achieve a revenue of 1.45 to 1.52 billion yuan in the first half of 2024, representing a year-on-year growth of 17.46% to 23.13%. For Q2 alone, the revenue is projected to be 770 to 840 million yuan, with a year-on-year increase of 25.00% to 35.92% [3] - The net profit attributable to the parent company for the first half of 2024 is anticipated to be 425 to 445 million yuan, reflecting a year-on-year growth of 13.61% to 18.95%. In Q2, the net profit is expected to be 223 to 243 million yuan, with a year-on-year increase of 23.89% to 35.00% [3] - The company has successfully delivered its 500th 12-inch CMP equipment, indicating that domestic market replacement of CMP equipment has been achieved. This milestone is expected to enhance the sales of key consumables and maintenance services [3][4] - The company is expanding its product line in CMP equipment, covering over 90% of CMP process types and actively exploring advanced packaging and compound semiconductor markets, which broadens its market space [4] - The company maintains a dynamic PE of 28, 22, and 19 times for the years 2024 to 2026, respectively, and continues to uphold a "Buy" rating based on its high growth potential [4] Financial Forecasts and Valuation - Total revenue is projected to grow from 2.51 billion yuan in 2023 to 3.53 billion yuan in 2024, with a year-on-year growth rate of 40.92% [2][9] - The net profit attributable to the parent company is forecasted to increase from 723.75 million yuan in 2023 to 1.09 billion yuan in 2024, with a year-on-year growth rate of 50.30% [2][9] - The latest diluted EPS is expected to rise from 3.06 yuan in 2023 to 4.60 yuan in 2024 [2][9] - The company’s market capitalization is approximately 30.23 billion yuan, with a closing price of 127.70 yuan per share [6][9]