Hwatsing Technology (688120) 东吴证券·2024-10-31 05:16Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has shown robust growth in Q3 2024, with revenue reaching 2.452 billion yuan, a year-on-year increase of 33.2%, driven by strong demand in the integrated circuit industry and an expanding market share for CMP products [2] - The net profit attributable to the parent company for Q3 2024 was 721 million yuan, up 27.8% year-on-year, attributed to revenue growth and tax benefits [2] - The company's gross margin remains stable at 45.8%, with a slight year-on-year decrease of 0.6 percentage points [3] - Significant growth in inventory and contract liabilities was noted, with contract liabilities at 1.505 billion yuan, up 18% year-on-year, and inventory at 3.312 billion yuan, up 45% year-on-year [3] - The company is expected to benefit from the rapid development of AI and high-performance computing, leading to increased demand for its CMP and thinning equipment [4] - The forecast for net profit attributable to the parent company for 2024-2026 is 1.08779 billion yuan, 1.38169 billion yuan, and 1.58054 billion yuan, respectively, with corresponding dynamic P/E ratios of 40, 31, and 27 [4] Financial Summary - For Q1-Q3 2024, the company achieved total revenue of 2.452 billion yuan, with a gross margin of 45.8% and a net profit margin of 29.4% [2][3] - The company's operating cash flow for Q3 was 504 million yuan, a significant increase of 391% year-on-year [3] - The projected revenue for 2024 is 3.534 billion yuan, with a year-on-year growth rate of 40.92% [1][10] - The company's total assets are projected to reach 11.986 billion yuan by 2024, with total liabilities of 5.378 billion yuan [10]