Piotech (SH:688072) Soochow Securities·2024-08-28 17:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported significant growth in Q2, with a revenue increase of 32% year-on-year and a net profit increase of 67% year-on-year, indicating strong product acceptance and revenue conversion from machine deliveries [3][9] - New product introductions have slightly impacted profitability, with a gross margin of 47% in H1 2024, down 2.38 percentage points year-on-year, while R&D expenses continue to rise [11][18] - The company is expanding its PECVD field, achieving full coverage of PECVD dielectric film materials and successfully launching several new products, which opens up growth opportunities [4][17] Summary by Sections Financial Performance - In H1 2024, total revenue reached 1.267 billion yuan, up 26.2% year-on-year, while net profit was 129 million yuan, up 3.6% year-on-year [3][9] - Q2 revenue was 795 million yuan, reflecting a 32% year-on-year increase and a 68.4% quarter-on-quarter increase, with net profit of 119 million yuan, up 67% year-on-year and 1090% quarter-on-quarter [3][9] Profitability and Costs - The gross margin for H1 2024 was 47%, down 2.38 percentage points year-on-year, and the net profit margin was 9.7%, down 2.85 percentage points year-on-year [11][12] - The expense ratio increased to 44.83%, with R&D expenses accounting for 24.8% of total revenue, up 3.88 percentage points year-on-year [11][12] Inventory and Cash Flow - As of Q2 2024, the company's contract liabilities were 2.038 billion yuan, up 35% year-on-year, and inventory was 6.455 billion yuan, up 96% year-on-year, indicating strong order backlog [13][15] - The net cash flow from operating activities for H1 2024 was -900 million yuan, a decrease of 21.1% year-on-year, primarily due to increased material payments [13][15] Product Development and Market Expansion - The company has successfully industrialized various PECVD processes and continues to receive orders for new equipment, indicating a robust market position [4][17] - The introduction of new products in the ALD and SACVD segments has also shown positive customer validation and order growth [4][17] Earnings Forecast and Valuation - The company is projected to achieve net profits of 830 million yuan, 1.18 billion yuan, and 1.41 billion yuan for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 41, 29, and 24 [18]