Hwatsing Technology (688120) Ping An Securities·2024-10-31 00:35Investment Rating - The report maintains a "Recommended" rating for the company [1][6] Core Insights - The company achieved a record high revenue of 24.52 billion yuan in the first three quarters of 2024, representing a year-on-year growth of 33.22%. The net profit attributable to shareholders was 7.21 billion yuan, up 27.80% year-on-year [3][6] - The demand in emerging application fields has significantly increased, leading to a continuous improvement in the company's gross margin. The gross margin for Q3 was 45.08%, with a net margin of 30.16% [3][6] - The company is actively advancing the development of new products and technologies, enhancing its market competitiveness. New product launches include the Universal H300 CMP machine and the Versatile-GM300 wafer thinning machine [4][5][6] Financial Summary - For the first three quarters of 2024, the company reported a revenue of 24.52 billion yuan and a net profit of 7.21 billion yuan, with a non-recurring net profit of 6.15 billion yuan [3] - The company expects to achieve revenues of 34.88 billion yuan in 2024, with net profits projected at 10.09 billion yuan, reflecting a growth trajectory [6][10] - The earnings per share (EPS) are forecasted to be 4.26 yuan for 2024, 5.38 yuan for 2025, and 6.71 yuan for 2026, with corresponding price-to-earnings (P/E) ratios of 43.4X, 34.4X, and 27.6X respectively [6][10]