Hwatsing Technology (SH:688120) HUAXI Securities·2024-08-19 06:03Investment Rating - The report maintains an "Accumulate" rating for the company [2][7]. Core Views - The company reported a significant year-on-year revenue growth of 21.23% in H1 2024, with Q2 revenue increasing by 32.03%, primarily driven by accelerated revenue recognition from CMP equipment [3]. - The net profit attributable to the parent company for H1 2024 was 4.33 billion, reflecting a year-on-year increase of 15.65%, with Q2 net profit growing by 27.89% [4]. - The company is expanding its product line and investing in a new integrated circuit equipment manufacturing base in Shanghai, which supports its platform strategy [5][6]. Summary by Sections Financial Performance - H1 2024 revenue reached 1.497 billion, with Q2 revenue at 816 million, marking a significant acceleration in growth [3]. - H1 2024 net profit was 433 million, with a net profit margin of 28.91%, slightly down from the previous year [4]. - The company’s gross margin for H1 2024 was 46.26%, showing stability despite a slight decrease [4]. Product Development and Strategy - The company is enhancing its CMP equipment offerings and has received multiple orders for its thinning and cutting equipment [5]. - The investment in the Shanghai integrated circuit equipment base is aimed at expanding production capacity and developing new products [6]. Future Projections - Revenue forecasts for 2024-2026 are set at 3.5 billion, 4.74 billion, and 6.034 billion, with expected year-on-year growth rates of 39%, 35%, and 27% respectively [7]. - The projected net profit for the same period is 1.009 billion, 1.335 billion, and 1.701 billion, with growth rates of 39%, 32%, and 27% [7].