KINGSEMI(SH:688037) Huachuang Securities·2024-10-23 08:37Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 100.6 yuan [1][2]. Core Insights - The company's short-term performance has experienced fluctuations, but a robust order backlog is expected to support a rapid recovery in performance. The revenue for Q3 2024 was 4.11 billion yuan, down 19.55% year-on-year, while the gross margin improved to 46.22% [1][2]. - The acceleration of domestic semiconductor equipment localization presents an opportunity for the company to gain market share, as it is currently the only domestic provider of mid-to-high-end production-type coating and developing equipment [2]. - Increased R&D investment is building core competitive advantages and expanding the product matrix, which is expected to open up growth opportunities [2]. Financial Summary - For the first three quarters of 2024, the company reported total revenue of 11.05 billion yuan, a year-on-year decrease of 8.44%, with a gross margin of 42.46% [1][3]. - The net profit attributable to the parent company for Q3 2024 was 0.31 billion yuan, down 62.74% year-on-year, while the net profit for the first three quarters was 1.08 billion yuan, down 51.12% [1][3]. - The company’s revenue forecasts for 2024-2026 have been adjusted to 18.78 billion yuan, 25.26 billion yuan, and 33.37 billion yuan, respectively [2][3].