SQM(SH:688138) Tai Ping Yang·2025-05-17 10:25Investment Rating - The report assigns a "Buy" rating to the company, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [7][14]. Core Insights - The company is a leading domestic manufacturer of photomasks, with significant growth potential due to the increasing demand in the flat panel display and semiconductor industries. The report highlights the company's plans to raise up to 1.2 billion yuan through a targeted stock issuance to fund the construction of high-precision photomask production bases [3][4]. - The domestic photomask market is expected to grow significantly, with a projected demand increase from 73.1 billion yen in 2022 to 82.2 billion yen by 2027. The company aims to fill the gap in the domestic supply of high-end semiconductor photomasks, which are currently heavily reliant on imports [4][6]. - The company has established deep partnerships with key domestic IC foundries and other semiconductor-related enterprises, enhancing its market position and technical capabilities [5]. Financial Projections - Revenue is projected to grow from 1.11 billion yuan in 2024 to 2.10 billion yuan in 2027, with corresponding net profits increasing from 172 million yuan to 408 million yuan over the same period. The report anticipates a compound annual growth rate (CAGR) of approximately 29.29% for revenue from 2025 to 2026 [8][11]. - The report forecasts a steady increase in gross margin from 27.62% in 2023 to 32.95% in 2027, indicating improved profitability as the company scales its operations [11].