GenTech(SH:688596) Changjiang Securities·2025-05-03 01:19Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [10]. Core Insights - The company, Zhengfan Technology, is a leading provider of ultra-pure process media supply systems for the semiconductor industry, leveraging unique advantages in micro-pollution control, fluid technology, and process safety [4][7]. - The company's growth strategy focuses on providing a one-stop comprehensive service that integrates key systems, core materials, and professional services, targeting well-known clients such as Texas Instruments, SMIC, and BOE [7][21]. - The company is expected to achieve revenue of 5.5 billion yuan in 2024, representing a year-on-year growth of 43%, with a net profit of 530 million yuan, up 32% year-on-year [7][10]. Summary by Sections CAPEX: Deepening Media Supply Systems - The company serves the semiconductor FABs with high-purity gas and wet chemical supply systems, which are essential for the production processes [8]. - Core products include independent devices that perform essential functions such as delivery, distribution, and mixing, meeting clients' needs for purity, process, and safety control [8][46]. - The company is expanding into biopharmaceutical equipment, providing critical systems for clean production [8][24]. OPEX: Expanding Key Materials and Services - The company has built a strong domestic and international customer base in various sectors, including semiconductor, optical fiber communication, and biomedicine [9]. - It is actively developing electronic gases and chemicals, with a focus on MRO (Maintenance, Repair, and Operations) services, which are expected to grow as the semiconductor industry expands [9][24]. - In 2023, the electronic gas and MRO business generated approximately 640 million yuan, accounting for about 17% of total revenue [9]. Financial Performance: Sustained High Growth - The company has maintained a high growth rate since its listing, with a compound annual growth rate (CAGR) of 49.02% from 2020 to 2024 [32]. - In 2024, the company achieved a gross profit margin of 27.1%, with the semiconductor and photovoltaic sectors contributing significantly to revenue [37][43]. - The company has a robust order backlog of 8.2 billion yuan, with 52% coming from the semiconductor sector [44]. Profit Forecast: New Business Development - The company is projected to achieve revenues of 6.99 billion yuan, 8.78 billion yuan, and 10.85 billion yuan from 2025 to 2027, with corresponding net profits of 700 million yuan, 930 million yuan, and 1.15 billion yuan [10].