Hwatsing Technology (SH:688120) Changjiang Securities·2024-08-22 13:13Investment Rating - The investment rating for the company is "Buy" and it is maintained [5]. Core Views - The company reported a record high revenue in Q2 2024, with a revenue of 816 million yuan, representing a year-on-year growth of 32.0% and a quarter-on-quarter growth of 20.0% [6]. - The company is expected to achieve a net profit attributable to shareholders of 1 billion yuan in 2024, with projected profits of 1.3 billion yuan in 2025 and 1.6 billion yuan in 2026, corresponding to PE ratios of 32, 25, and 20 times respectively [7]. - The company is actively investing in R&D and has made significant progress across multiple fields, including CMP equipment and wafer thinning equipment, which have received multiple orders from leading enterprises [7][8]. Financial Performance - In H1 2024, the company achieved a revenue of 1.497 billion yuan, a year-on-year increase of 21.2%, and a net profit of 433 million yuan, up 15.7% year-on-year [6]. - The gross profit margin for H1 2024 was 46.3%, and the net profit margin was 28.9% [7]. - The company has a strong order backlog, with inventory reaching 3.08 billion yuan and contract liabilities at 1.34 billion yuan by the end of Q2 2024, both marking historical highs [8]. Production and R&D Expansion - The company is accelerating the construction of production and R&D bases, including a project in Beijing and a second phase in Tianjin, both expected to be completed by the end of 2024 [8]. - An investment of up to 1.698 billion yuan is planned for a new R&D and manufacturing base in Shanghai Lingang, aimed at expanding production capacity and consolidating the company's leading position [8].