KINGSEMI(SH:688037) China Post Securities·2024-07-21 03:00Investment Rating - The report assigns a "Buy" rating for the company, maintaining this stance for future outlook [33]. Core Insights - The company is a leading domestic provider of coating and developing equipment for semiconductor manufacturing, continuously enhancing its high-end product offerings. It has successfully launched various models, including Offline, I-line, KrF, and ArF immersion systems, and has secured significant orders from major domestic clients [41][88]. - The company is actively expanding into the chemical cleaning equipment market, having introduced a new single-wafer chemical cleaning machine that has received validation orders from key domestic clients. This move significantly increases the market potential for its front-end cleaning products [42][81]. - The company is well-positioned to benefit from the growth in advanced packaging technologies, particularly in the 2.5D and 3D sectors, as it has developed several new products tailored to meet the needs of leading clients in this area [42][88]. Financial Performance - The company forecasts revenues of 22.94 billion, 30.52 billion, and 40.73 billion RMB for 2024, 2025, and 2026, respectively, with corresponding net profits of 3.34 billion, 4.70 billion, and 6.24 billion RMB. The projected P/E ratios for these years are 45, 32, and 24 times [11][12]. - In 2023, the company achieved a net profit of 2.51 billion RMB, reflecting a year-on-year growth of 25.21%, driven by increased R&D investments and enhanced product performance [26][54]. Product Development - The company has made significant advancements in its core product lines, particularly in coating and developing equipment, which are essential for the semiconductor manufacturing process. The company has achieved international standards in several key technologies [76][88]. - The introduction of the new single-wafer chemical cleaning machine marks a strategic expansion into a higher-value market segment, enhancing the company's competitive positioning [42][81]. Market Outlook - The semiconductor equipment market is expected to see substantial growth, with projections indicating over 30 billion USD in annual investments in wafer fabrication equipment in China over the next four years, driven by government incentives and domestic production initiatives [84].