FHEC(SH:688362)2025-01-05 03:47Investment Rating - The report gives an "Outperform" rating for the company, with a target price of RMB 34.85 based on a 2025 PE of 85x [19]. Core Insights - The company has experienced significant growth in net profit attributable to shareholders, with a revenue increase of 56.43% year-on-year in the first three quarters, reaching RMB 2.55 billion [12]. - The global semiconductor industry is showing signs of moderate recovery, positively impacting the company's capacity utilization and new customer expansion [17][19]. - The company is focusing on advanced packaging technologies, increasing R&D investment to enhance its technical capabilities [16]. Financial Data and Forecast - Revenue is projected to grow from RMB 2.39 billion in 2023 to RMB 5.16 billion by 2026, with corresponding net profits increasing from a loss of RMB 93 million in 2023 to RMB 322 million in 2026 [2][19]. - The gross profit margin is expected to improve from 13.9% in 2023 to 28.7% in 2026, reflecting enhanced operational efficiency [2][19]. - The company’s EPS is forecasted to rise from -0.23 in 2023 to 0.79 in 2026, indicating a strong recovery trajectory [2][19]. Customer and Product Development - The company has expanded its customer base, with 14 customers achieving sales exceeding RMB 50 million in the first half of 2024, including three customers surpassing RMB 100 million [14]. - Product lines in wafer-level packaging and automotive electronics are being diversified, with successful certifications from major automotive manufacturers [15]. R&D and Technological Advancements - R&D investment reached RMB 93.98 million in the first half of 2024, accounting for 5.77% of revenue, focusing on advanced packaging technologies [16]. - The company is enhancing its capabilities in fan-out and 2.5D/3D packaging processes, which are critical for future growth [16].