AMEC(SH:688012) Huachuang Securities·2024-10-31 16:37Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 228.0 CNY [1][2]. Core Insights - The company has shown continuous high growth in performance for Q3 2024, with a revenue increase of 35.96% year-on-year to 20.59 billion CNY, driven by the rapid release of etching equipment and a solid order backlog [2][3]. - The gross margin for Q3 2024 was 43.73%, reflecting a 5.56 percentage point increase from the previous quarter, while the net profit surged by 152.63% year-on-year to 3.96 billion CNY [1][2]. - The company is benefiting from the ongoing domestic substitution of semiconductor equipment, with significant growth in orders, particularly for etching equipment, which saw a 49.41% increase in revenue to 17.15 billion CNY in Q3 2024 [2][3]. Financial Summary - For the first three quarters of 2024, the company achieved total revenue of 55.07 billion CNY, a year-on-year increase of 36.27%, with a gross margin of 42.22% [1]. - The net profit attributable to the parent company for Q1-Q3 2024 was 9.13 billion CNY, showing a year-on-year decrease of 21.28%, while the net profit excluding non-recurring items increased by 10.88% to 8.13 billion CNY [1][3]. - The company’s R&D expenditure for Q1-Q3 2024 was 7.56 billion CNY, representing a year-on-year increase of 95.99%, accounting for approximately 28.03% of total revenue [2]. Order and Product Development - The company secured new orders totaling approximately 76.4 billion CNY in the first three quarters of 2024, marking a year-on-year increase of about 52.0%, with 62.5 billion CNY attributed to etching equipment [2]. - The company’s new product development is progressing well, with significant increases in the shipment of high-end etching products for advanced logic and memory devices [2]. Market Position and Future Outlook - The changing international trade environment is accelerating the domestic production of semiconductor equipment, positioning the company to benefit from this trend [2]. - The company is expected to play a crucial role in the domestic production process of high-end storage and logic production lines, with its equipment entering mass production for advanced technology nodes [2].