Huate Gas(SH:688268) EBSCN·2024-09-03 23:40Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next 6-12 months [2]. Core Views - The company achieved a revenue of 718 million yuan in the first half of 2024, a decrease of 3.0% year-on-year, while the net profit attributable to shareholders increased by 28.9% to 96.15 million yuan [1]. - The gross margin for semiconductor gases and industrial gases improved, contributing to the profit growth [1]. - The company is expanding its product offerings and enhancing its operational capabilities through domestic and international base layouts [1][2]. Summary by Sections Financial Performance - In Q2 2024, the company reported a revenue of 385 million yuan, a year-on-year increase of 1.0% and a quarter-on-quarter increase of 15.8% [1]. - The gross margin for the semiconductor gas business was 36.9%, up 2.4 percentage points year-on-year, while the gross margin for industrial gases was 16.3%, an increase of approximately 2.3 percentage points compared to 2023 [1]. Business Expansion - The company has over 20 products for 14nm, 7nm, and 5nm chip processes, and has entered the supply chains of major manufacturers in the third-generation semiconductor sector [1]. - Internationally, the company has established subsidiaries in Thailand and Malaysia and acquired AIG in Singapore to enhance its production and logistics capabilities [1]. - Domestically, the company is accelerating the construction of production bases in Nantong, Southwest China, and Jiangxi [1]. Product Development - The company has successfully industrialized germane products and is actively working on the production of silane, with steady increases in output [1]. - The company is also advancing research on silicon-based precursor products, which will support its gas applications in advanced processes [1].