KINGSEMI(SH:688037) Guotou Securities·2024-09-01 00:03Investment Rating - The investment rating for the company is "Buy - A" with a target price of 81.50 CNY [4][8]. Core Insights - The company reported a revenue of 694 million CNY for H1 2024, a slight decrease of 0.29% year-on-year, and a net profit of 76 million CNY, down 43.88% year-on-year [1][2]. - In Q2 2024, the company achieved a revenue of 449 million CNY, an increase of 10.31% year-on-year and a significant increase of 84.02% quarter-on-quarter [1][2]. - The company signed new orders worth 1.219 billion CNY in H1 2024, representing a year-on-year growth of 30% [3]. Financial Performance Summary - For H1 2024, the company’s revenue was 694 million CNY, with a net profit of 76 million CNY and a non-recurring net profit of 36 million CNY, reflecting declines of 43.88% and 65.52% year-on-year respectively [1][2]. - The company’s Q2 2024 performance showed a revenue of 449 million CNY, with a net profit of 60 million CNY and a non-recurring net profit of 27 million CNY, indicating a year-on-year decrease but a substantial quarter-on-quarter increase [1][2]. - The company’s R&D expenses increased by 52% year-on-year to 117 million CNY, contributing to the rise in management and sales expenses by 35.87% [2]. Order and Market Position - The company is a leader in the domestic coating and developing equipment sector, with successful coverage of 28nm and above mature process nodes and ongoing validation for advanced processes below 14nm [3]. - As of June 2024, the company had a record high order backlog exceeding 2.6 billion CNY, driven by strong demand in various segments including advanced packaging and semiconductor applications [3][7]. - The company’s new high-temperature sulfuric acid cleaning equipment is expected to break foreign monopolies in this technology, providing a stable growth point for future performance [7]. Future Projections - Revenue projections for the company are estimated at 2.232 billion CNY, 3.192 billion CNY, and 4.149 billion CNY for 2024, 2025, and 2026 respectively, with net profits expected to reach 328 million CNY, 486 million CNY, and 584 million CNY in the same years [8][10]. - The company is expected to benefit from a recovery in the semiconductor industry and an increase in new orders for its front-end coating and developing equipment [8].