Tianshui Huatian Technology (002185) 光大证券·2024-08-19 11:40Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 7.94 yuan [2][3] Core Views - The company is a leading domestic integrated circuit packaging and testing enterprise, with its industrial scale ranking among the top ten globally in the packaging and testing industry [1] - The company has been continuously expanding its product lines, with significant advancements in advanced packaging technologies and processes, including FOPLP, 2.5D, and 3D NAND Flash 32-layer ultra-thin chip stacking [1] - The company has achieved mass production of high-density RF SiP modules for 5G flagship smartphones and UFS3.1 products with FC+WB hybrid packaging [1] - The company has obtained 42 authorized patents in 2023, including 15 invention patents [1] - The company is actively promoting the localization of equipment and materials to ensure supply chain security, with progress in the verification and procurement of domestic packaging equipment and materials [2] Financial Performance - The company's revenue is expected to grow from 11,906 million yuan in 2022 to 17,478 million yuan in 2026, with a CAGR of 10.1% [3] - Net profit attributable to the parent company is forecasted to increase from 754 million yuan in 2022 to 1,380 million yuan in 2026, with a CAGR of 16.8% [3] - The company's gross margin is expected to improve from 16.8% in 2022 to 15.0% in 2026 [6] - The company's ROE (diluted) is projected to rise from 4.8% in 2022 to 7.4% in 2026 [6] Valuation Metrics - The company's current market capitalization is 254.44 billion yuan, with a total share capital of 3.204 billion shares [4] - The company's P/E ratio is expected to decrease from 34x in 2022 to 18x in 2026 [3][6] - The company's P/B ratio is forecasted to decline from 1.6x in 2022 to 1.4x in 2026 [6] Industry Overview - The global packaging and testing industry is highly concentrated, with the top ten companies accounting for over 75% of the market share, and this trend is expected to continue [1] - The domestic packaging and testing industry is the only segment in the integrated circuit industry chain that can compete comprehensively with international companies, with domestic companies like the report's subject company having reached a similar level of technological capability as foreign and joint venture enterprises [1]