HHCK(688535) 群益证券·2025-02-24 08:15Investment Rating - The report assigns a "Buy" rating to the company, indicating a potential upside in the stock price [5][11]. Core Insights - The company is a leading player in the epoxy encapsulation materials sector, with a significant market presence in both traditional and advanced packaging fields. It is set to enhance its competitive edge through the acquisition of Hengsuo Huawai, the top domestic supplier of epoxy encapsulation materials, which will position the company as the second-largest supplier globally [5][9]. - The company has achieved a notable level of product quality comparable to foreign manufacturers in the traditional packaging sector and is gradually replacing foreign products in key client accounts [7][9]. - The company’s revenue from the epoxy encapsulation materials segment reached 149 million RMB in the first half of 2024, accounting for 95.72% of total revenue, with a gross margin of 27.40% [7]. Company Overview - The company was established in 2010 and went public on the Sci-Tech Innovation Board in April 2023. Its primary product, epoxy encapsulation materials (EMC), is widely used in semiconductor packaging [7]. - The company has a diverse customer base, including major domestic packaging firms such as Changdian Technology and Huatian Technology [7]. - The company is also involved in the electronic adhesive market, which complements its EMC business, with a revenue contribution of 622,000 RMB in the first half of 2024 [11]. Financial Performance - The company reported a net profit of 32 million RMB in 2023, with projections of 46 million RMB in 2024 and 63 million RMB in 2025, reflecting a year-on-year growth of 44.26% and 39.07% respectively [10]. - The earnings per share (EPS) are expected to increase from 0.39 RMB in 2023 to 0.57 RMB in 2024 and 0.79 RMB in 2025 [10]. - The company’s price-to-earnings (P/E) ratio is projected to decrease from 230.60 in 2023 to 114.95 in 2025, indicating a potential valuation adjustment post-acquisition [10]. Market Position and Strategy - The company is positioned to capture a larger market share in the EMC sector, with current domestic market share below 5%. The acquisition of Hengsuo Huawai is expected to significantly enhance its market presence and operational capabilities [9][11]. - The company is actively working on advanced packaging materials, with several products undergoing customer validation, which could lead to new revenue streams in the future [7][11].