KINGSEMI(SH:688037) KAIYUAN SECURITIES·2024-10-24 09:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's Q3 2024 performance showed a significant decline in revenue and net profit year-on-year, but the gross margin improved notably [2][3] - The semiconductor industry is gradually recovering, leading to a downward revision of the company's profit forecasts for 2024-2026, with expected net profits of 208 million, 337 million, and 505 million yuan for the respective years [2][3] - The company is expected to benefit from a rapid increase in product market share, justifying the "Buy" rating [2] Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 1.105 billion yuan, down 8.44% YoY, and a net profit of 108 million yuan, down 51.12% YoY [2][3] - Q3 2024 revenue was 411 million yuan, down 19.55% YoY and 8.54% QoQ, with a net profit of 32 million yuan, down 62.74% YoY and 47.61% QoQ [2][3] - The gross margin for Q3 2024 was 46.22%, an increase of 5.1 percentage points YoY and 6.04 percentage points QoQ [2][3] Order and Market Dynamics - New orders in H1 2024 reached 1.219 billion yuan, a 30% increase YoY, with significant growth in the front-end track and chemical cleaning markets [4] - The company has a backlog of over 2.6 billion yuan in orders as of June 2024, providing a solid foundation for future performance [4] Financial Projections - Revenue projections for 2024, 2025, and 2026 are 1.901 billion, 2.501 billion, and 3.446 billion yuan, respectively, with corresponding net profit estimates of 208 million, 337 million, and 505 million yuan [5][6] - The expected EPS for 2024, 2025, and 2026 is 1.03, 1.68, and 2.51 yuan, respectively [5][6]