Piotech (688072) Huafu Securities·2024-09-30 13:43Investment Rating - The report initiates coverage with a "Buy" rating for the company [4][6]. Core Views - The company is a leader in the domestic thin film deposition equipment sector, with continuous and stable growth in performance. In 2023, the company achieved a revenue of 2.705 billion yuan, a year-on-year increase of 58.60%, and a net profit of 663 million yuan, with a gross margin of 51.01% [1][16]. - The semiconductor equipment industry is expected to recover, with a projected market growth of 4% in 2024, driven by the demand for new technologies such as 5G and AI [2][26]. - The company is heavily investing in R&D to expand its product line, with significant advancements in PECVD, ALD, SACVD, and HDPCVD technologies, which are widely used in integrated circuit manufacturing [3][36]. Summary by Sections Company Overview - The company, established in 2010, has developed multiple core technologies with international standards, focusing on PECVD, ALD, SACVD, and HDPCVD equipment, widely applied in logic and memory chip manufacturing [1][10]. - The company has a diverse shareholder background, with the largest shareholder being the National Integrated Circuit Fund, holding 19.77% of shares, reflecting strong governmental support for semiconductor equipment development [12][14]. Market Outlook - The global semiconductor equipment market is projected to recover, with a market size of approximately 105.3 billion USD in 2024, following a decline in 2023 due to weak downstream chip cycles [2][26]. - The domestic semiconductor market is expanding rapidly, supported by government policies and increasing local production capabilities, with a significant growth opportunity for domestic manufacturers [28][33]. Product Development - The company maintains high R&D investment, with 576 million yuan spent in 2023, a 52.07% increase from the previous year, focusing on enhancing product performance and expanding the product range [16][19]. - The PECVD product line has achieved significant market penetration, with sales revenue reaching 2.321 billion yuan in 2023, a 48.46% increase year-on-year [16][18]. - The ALD series has also seen substantial growth, with the first Thermal-ALD device achieving industrial application, indicating successful innovation and market expansion [44][45]. Financial Projections - The company is expected to achieve revenues of 3.8 billion yuan, 4.942 billion yuan, and 6.209 billion yuan in 2024, 2025, and 2026, respectively, with corresponding net profits of 757 million yuan, 1.022 billion yuan, and 1.324 billion yuan [4][19]. - The company's P/E ratio is projected to decrease from 60.5 in 2023 to 30.3 by 2026, indicating potential for valuation improvement as earnings grow [4][19].