Hwatsing Technology (688120) Guotai Junan Securities·2024-10-30 23:39Investment Rating - The report maintains a "Buy" rating for the company [5][4]. Core Views - Q3 performance slightly exceeded expectations, with accelerated equipment acceptance and steady progress in platform layout [4]. - The company is enhancing its capacity layout and accelerating the localization of components [4]. Financial Summary - Revenue for 2022 was 1,649 million, projected to grow to 2,508 million in 2023, and reach 5,981 million by 2026, reflecting a growth rate of 104.9% in 2022 and 52.1% in 2023 [3]. - Net profit attributable to the parent company was 502 million in 2022, expected to rise to 724 million in 2023 and 1,677 million by 2026, with a growth rate of 153.0% in 2022 and 44.3% in 2023 [3]. - The earnings per share (EPS) is projected to be 2.12 in 2022, increasing to 3.06 in 2023 and 7.08 by 2026 [3]. - The return on equity (ROE) is expected to improve from 10.5% in 2022 to 17.9% by 2026 [3]. Performance Highlights - For Q1-Q3 2024, the company achieved revenue of 2,452 million, a year-on-year increase of 33.22%, and a net profit of 721 million, up 27.8% [4]. - In Q3 2024 alone, revenue reached 955 million, marking a 57.63% increase, with net profit at 288 million, up 51.74% [4]. - The gross margin for Q1-Q3 2024 was 45.82%, with a net margin of 29.4% [4]. Equipment and Product Development - The company is advancing its CMP equipment, with the Universal H300 achieving small batch shipments in the first half of 2024 [4]. - The Versatile-GP300 thinning equipment has secured multiple orders from leading front-end fabs, while the Versatile-GM300 is being validated at domestic packaging testing facilities [4]. - New cutting equipment for advanced packaging has been sent to multiple clients for validation [4]. Capacity and Localization Efforts - The Beijing and Tianjin bases are expected to complete construction by the end of 2024, enhancing CMP, thinning, and cleaning equipment capacity [4]. - The company is investing 1.698 billion in a new base in Shanghai Lingang [4]. - Localization efforts have progressed, with key components like the spindle and multi-hole suction cups reaching mass production conditions [4].