KFMI(300666) 长城证券·2024-09-09 04:03Investment Rating - The report maintains an "Accumulate" rating for the company [1][3] Core Views - The company is a leading player in the high-purity sputtering target market, benefiting from domestic substitution trends in the semiconductor industry, with significant growth potential anticipated [3] - The company's revenue for the first half of 2024 is expected to grow by 35.9% year-on-year, driven by strong performance in both target materials and precision components [2][6] - The company is actively expanding its production capacity and enhancing its R&D efforts, which are expected to contribute to future growth [2][3] Financial Summary - For 2022A, the company reported revenue of 2,325 million yuan, with a year-on-year growth rate of 45.9%. The projected revenue for 2024E is 3,676 million yuan, reflecting a growth rate of 41.3% [1][10] - The net profit attributable to the parent company for 2022A was 264 million yuan, with a projected increase to 331 million yuan in 2024E, corresponding to a growth rate of 29.5% [1][10] - The company's return on equity (ROE) is expected to improve from 5.9% in 2022A to 10.7% by 2026E [1][11] Segment Performance - The first major business segment, ultra-pure target materials, generated revenue of 1,069 million yuan in the first half of 2024, accounting for 65.7% of total revenue, with a year-on-year growth of 37.3% [2][6] - The second major segment, precision components, achieved revenue of 399 million yuan in the first half of 2024, representing a remarkable year-on-year growth of 96.1% [2][6] - The company is expected to benefit from the acceleration of domestic supply chain localization, with a projected market size for precision components in China's semiconductor equipment sector reaching 125.3 billion yuan in 2024 [2][3] R&D and Market Confidence - The company's R&D expenditure increased by 30.8% year-on-year in the first half of 2024, amounting to 102 million yuan [2][6] - The company has been actively repurchasing its shares, reflecting management's confidence in the company's future development [2][6]