PNC(603690) 东海证券·2024-09-26 04:00Investment Rating - The report initiates coverage with a "Buy" rating for the company [5] Core Views - The company is a leading domestic player in high-purity process systems, with stable order growth and a competitive edge in the semiconductor industry [6] - The company is expanding its wet process equipment business, achieving full coverage at the 28nm node and breakthroughs at the 14nm and below nodes [7] - The company is investing in equipment component supply, bulk gas stations, component cleaning, and wafer regeneration services to create new growth opportunities [8] - The company is expected to see revenue growth of 6.08%, 18.73%, and 21.95% in 2024, 2025, and 2026, respectively, with net profit growth of 0.67%, 27.77%, and 34.55% over the same period [9] High-Purity Process Systems - The company is a leader in high-purity process systems, with a market share of nearly 30% in China, competing against international players [6] - The global semiconductor wafer capacity is expected to grow by 6.4% in 2024, with China leading the growth at a 15% increase, driving demand for high-purity process systems [6][48] - The high-purity process system market in China is projected to reach RMB 18.7 billion in 2024, with a CAGR of 18.90% from 2019 to 2024 [49] - The company's high-purity process system revenue in 2023 was RMB 2.318 billion, with a gross margin of 37.06%, outperforming domestic peers [6][55] Wet Process Equipment - The company is focusing on wet process equipment, including single-wafer and batch wet cleaning equipment, achieving full coverage at the 28nm node and breakthroughs at the 14nm and below nodes [7] - The global semiconductor cleaning equipment market is expected to grow at a CAGR of 5.5% from 2024 to 2030, reaching RMB 39.1 billion by 2030 [7] - The company's semiconductor process equipment orders in the first half of 2024 reached RMB 626 million, a significant increase year-over-year, with full-year orders expected to be between RMB 1.5 billion and RMB 2 billion [7] New Growth Opportunities - The company is investing in equipment component supply, bulk gas stations, component cleaning, and wafer regeneration services to create new growth curves [8] - The precision component market for semiconductor equipment is expected to reach USD 54.5 billion in 2024, with the company actively developing domestic supply chains [8] - The company's first fully domestic 12-inch wafer bulk gas supply plant in Shanghai has been operational since 2022, with long-term orders for bulk gas stations under construction [8] Financial Projections - The company is expected to achieve revenues of RMB 3.343 billion, RMB 3.969 billion, and RMB 4.840 billion in 2024, 2025, and 2026, respectively [9] - Net profit is projected to be RMB 380 million, RMB 485 million, and RMB 663 million in 2024, 2025, and 2026, respectively [9] - The company's gross margin is expected to improve from 35.09% in 2024 to 37.64% in 2026, driven by its competitive position in high-purity process systems and wet process equipment [9][10]