Hwatsing Technology (SH:688120) Ping An Securities·2025-05-02 08:25Investment Rating - The report maintains a "Recommendation" rating for Huahai Qingke (688120.SH) with a current stock price of 165.26 CNY [1] Core Views - The company has shown continuous revenue growth, achieving 3.406 billion CNY in revenue for 2024, a year-on-year increase of 35.82%, and a net profit of 1.023 billion CNY, up 41.40% year-on-year [4][7] - In Q1 2025, the company reported revenue of 912 million CNY, a 34.14% increase year-on-year, with a net profit of 233 million CNY, reflecting a 15.47% growth [4][10] - The company is benefiting from the domestic semiconductor equipment market, with significant advancements in CMP and thinning equipment, leading to increased market share and sales [7][10] Financial Summary - For 2024, the company expects revenue of 3.406 billion CNY and net profit of 1.023 billion CNY, with projected growth rates for 2025-2027 showing continued upward trends in revenue and profit [6][11] - The gross margin for 2024 is reported at 43.20%, with a slight decrease of 0.35 percentage points year-on-year [7] - The company has a strong balance sheet with total assets of 11.751 billion CNY and a debt-to-asset ratio of 44.9% for 2024 [11] Product Development and Market Position - The company has successfully launched new CMP equipment and thinning machines, with significant orders and validations from major domestic clients [8][10] - The introduction of advanced CMP systems and ion implantation equipment has positioned the company favorably in the semiconductor manufacturing sector [8][10] - The company is actively expanding its product lines and services, indicating strong growth potential in the semiconductor equipment market [10]