Kunshan Dongwei Technology (SH:688700) Soochow Securities·2025-05-05 12:04Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company's performance is under short-term pressure, but there is optimism regarding the ramp-up of PCB equipment and composite copper foil equipment [1] - The revenue for 2024 is projected to be 7.50 billion yuan, a year-on-year decrease of 17.5%, primarily due to the drag from new energy electroplating equipment [7] - The company has successfully developed and is ramping up production of advanced PCB electroplating and new energy electroplating equipment, which is expected to enhance its technical capabilities and market position [7] Financial Summary - Total revenue for 2023 was 9.09 billion yuan, with a projected decline to 7.50 billion yuan in 2024, followed by a recovery to 9.64 billion yuan in 2025 [1][8] - The net profit attributable to the parent company is expected to drop from 1.51 billion yuan in 2023 to 692.7 million yuan in 2024, before rebounding to 1.47 billion yuan in 2025 [1][8] - The earnings per share (EPS) is forecasted to decrease from 0.51 yuan in 2023 to 0.23 yuan in 2024, with a recovery to 0.49 yuan in 2025 [1][8] Operational Insights - The company's gross margin for 2024 is expected to be 33.5%, down 8.2 percentage points year-on-year, while the net profit margin is projected at 9.24%, down 7.4 percentage points year-on-year [7] - As of the end of Q4 2024, the company's contract liabilities increased by 69.7% year-on-year to 368 million yuan, and inventory rose by 54.1% year-on-year to 634 million yuan [7] - The company is the only one globally to achieve large-scale production of new energy lithium electroplating film equipment, indicating a strong competitive edge in this niche market [7]