Huate Gas(688268) 民生证券·2024-10-31 02:43Investment Rating - The report maintains a "Recommended" rating for the company [1][3]. Core Views - The company's revenue for the first three quarters of 2024 was CNY 1.058 billion, a year-on-year decrease of 6.26%, while the net profit attributable to shareholders increased by 9.09% to CNY 133 million [1]. - The third quarter saw a revenue of CNY 341 million, down 11.43% quarter-on-quarter and 12.39% year-on-year, with net profit of CNY 37 million, a decrease of 27.45% quarter-on-quarter and 22.29% year-on-year [1]. - The decline in performance is attributed to policy and market impacts, including rising raw material prices for germane products and falling market prices for some photovoltaic products [1]. - The company has made positive progress in its germane product projects, with significant client applications from major semiconductor manufacturers [1]. - The company has a robust pipeline with 60 ongoing projects, 15 of which are at an import substitution level, focusing on high-performance products for chip manufacturing [1]. - The company has successfully expanded into overseas markets, with its advanced process products certified by major lithography machine manufacturers [1]. - The company expects continued growth in its semiconductor business driven by downstream demand, projecting net profits of CNY 186 million, CNY 264 million, and CNY 345 million for 2024, 2025, and 2026 respectively, corresponding to PE ratios of 34, 24, and 18 times [1][2]. Financial Summary - For 2023, the company is projected to have a total revenue of CNY 1.5 billion, with a year-on-year decline of 16.8% [2]. - The net profit attributable to shareholders is expected to be CNY 171 million, down 17.2% year-on-year [2]. - The company anticipates a revenue increase to CNY 1.488 billion in 2024, with a slight decline of 0.8% [2]. - The projected net profit for 2024 is CNY 186 million, reflecting an 8.5% growth [2]. - The company aims for a revenue of CNY 1.86 billion in 2025 and CNY 2.27 billion in 2026, with growth rates of 25% and 22% respectively [2].