Hwatsing Technology (SH:688120) Guotou Securities·2024-08-18 02:00Investment Rating - The investment rating for the company is "Buy-A" with a target price of 176.12 CNY, maintaining the rating [6][11]. Core Insights - The company reported a revenue of 1.497 billion CNY for H1 2024, representing a year-on-year growth of 21.23%. The net profit attributable to the parent company was 433 million CNY, an increase of 15.65% year-on-year [2][3]. - The second quarter of 2024 saw a revenue of 816 million CNY, a year-on-year increase of 32.03% and a quarter-on-quarter increase of 20.00%. The net profit for Q2 was 231 million CNY, up 27.89% year-on-year and 14.03% quarter-on-quarter [2][3]. - The company is investing in a new integrated circuit equipment R&D and manufacturing base in Shanghai Lingang, with a total investment not exceeding 1.698 billion CNY, expected to be completed by 2026. This project aims to enhance the company's semiconductor equipment production capacity and diversify its product offerings [4][11]. Financial Performance Summary - For H1 2024, the company achieved a net cash flow from operating activities of 372 million CNY, a significant increase of 38.85% year-on-year, attributed to expanded business scale and increased sales collections [3]. - The projected revenues for 2024 to 2026 are 3.511 billion CNY, 4.565 billion CNY, and 5.478 billion CNY, respectively, with net profits expected to be 1.013 billion CNY, 1.393 billion CNY, and 1.442 billion CNY [11][12]. - The company’s financial metrics indicate a PE ratio of 41.00X for 2024, with a projected net profit margin of 28.8% [11][12].