L&K(603929) 长江证券·2024-10-14 02:44Investment Rating - The report maintains a Buy rating for Yaxing Integration (603929 SH) [2] Core Views - Yaxing Integration's performance in 2024 is significantly driven by the United Microelectronics Corporation (UMC) project in Singapore, with strong revenue and profit growth expected [2] - The company's revenue for the first three quarters of 2024 is projected to be between 4 28 52 million and 4 55 026 million yuan, a year-on-year increase of 136 01% to 150 61% [2] - Net profit attributable to shareholders is expected to range from 421 493 million to 456 617 million yuan, representing a year-on-year growth of 84 44% to 99 80% [2] - The UMC project in Singapore has contributed significantly to the company's performance, with the Singapore subsidiary generating 1 192 billion yuan in revenue in the first half of 2024 [2] - The company has secured a VSMC order worth 630 million yuan, with the project expected to last until September 2027, and there is potential for further orders [2] - Singapore's semiconductor industry is experiencing increased investment, with capital expenditures expected to exceed 10 billion USD in 2024, benefiting Yaxing Integration [3] - The company has established long-term partnerships with major domestic semiconductor players, including Xiamen Lianxin, SMIC, Hefei Changxin, and others, positioning it well for future growth [3] Financial Performance and Projections - Revenue is projected to grow from 3 201 billion yuan in 2023 to 6 304 billion yuan in 2026 [8] - Net profit attributable to shareholders is expected to increase from 287 million yuan in 2023 to 508 million yuan in 2026 [8] - Earnings per share (EPS) are forecasted to rise from 1 34 yuan in 2023 to 2 38 yuan in 2026 [8] - The company's gross margin is expected to remain stable at around 13% from 2024 to 2026 [8] - Operating cash flow is projected to fluctuate, with 93 million yuan in 2024, 549 million yuan in 2025, and 527 million yuan in 2026 [8] Industry Context - Singapore's semiconductor industry accounts for approximately 5% of global wafer fab capacity and 20% of global semiconductor equipment production [3] - The country aims for a 50% growth in its manufacturing sector over the next decade, with significant investments in the semiconductor industry [3] - Yaxing Integration is well-positioned to benefit from both domestic and international semiconductor capital expenditure expansions, particularly in advanced process technologies [3]