KINGSEMI(SH:688037) HUAXI Securities·2025-04-29 11:28Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company reported good new orders in Q1 2025, with revenue reaching 275 million yuan, a year-on-year increase of 12.74%, despite being a traditional off-season [3] - The company is experiencing a significant decline in net profit due to high R&D expenses, with a net profit of 4.66 million yuan in Q1 2025, down 71% year-on-year [4] - The acquisition of shares by Northern Huachuang will empower the company's business development, accelerating the domestic substitution of equipment [5] - Revenue forecasts for 2025-2027 are set at 2.096 billion, 2.693 billion, and 3.462 billion yuan, with corresponding net profit predictions of 264 million, 449 million, and 711 million yuan [6] Summary by Sections Event Overview - The company released its Q1 2025 financial report [2] New Orders and Revenue Growth - New orders are strong, with a total of approximately 2.4 billion yuan signed by the end of 2024, a year-on-year increase of 10% [3] - The company’s inventory and contract liabilities increased by 11.86% and 32.38% year-on-year, respectively [3] Profitability and R&D Investment - The overall gross margin for Q1 2025 was 34.29%, remaining stable year-on-year after adjusting for warranty costs [4] - R&D expenses reached 63.82 million yuan, a year-on-year increase of 41% [4] Business Development and Equipment Substitution - Northern Huachuang's acquisition will enhance the company's capabilities in track, cleaning, and bonding equipment [5] - The company has successfully secured orders from leading domestic clients for its front-end coating and developing equipment [5] Financial Forecasts - Revenue projections for 2025-2027 are 2.096 billion, 2.693 billion, and 3.462 billion yuan, with net profit forecasts of 264 million, 449 million, and 711 million yuan [6] - The expected EPS for 2025, 2026, and 2027 is 1.31, 2.23, and 3.53 yuan, respectively [6]