DING LONG(SZ:300054) China Post Securities·2025-05-28 05:23Investment Rating - The report initiates coverage with a "Buy" rating for the company [11] Core Insights - The semiconductor business is driving revenue growth, with innovative materials achieving breakthroughs across multiple areas. In 2024, the company is expected to achieve revenue of 3.338 billion yuan, a year-on-year increase of 25.14%, and a net profit attributable to shareholders of 521 million yuan, a year-on-year increase of 134.54% [3][10] - The CMP polishing pad business continues to solidify its leading position in domestic supply, with sales revenue of 716 million yuan in 2024, representing a year-on-year growth of 71.51% [4] - The company is diversifying its semiconductor business, with significant advancements in CMP polishing liquids, cleaning liquids, and semiconductor display materials, all showing substantial revenue growth [5][7] Company Overview - The latest closing price is 27.91 yuan, with a total market capitalization of 26.2 billion yuan and a total share capital of 938 million shares [2] - The company has a debt-to-asset ratio of 34.1% and a price-to-earnings ratio of 49.84 [2] Financial Projections - Revenue projections for 2025, 2026, and 2027 are 4.053 billion yuan, 4.901 billion yuan, and 5.900 billion yuan, respectively, with net profits of 701 million yuan, 959 million yuan, and 1.290 billion yuan [10][13] - The expected growth rates for revenue are 21.44%, 20.91%, and 20.39% for the respective years [13] Product Development - The company has made significant progress in high-end wafer photoresists, with over 20 products developed and 12 samples sent for client verification [8] - The semiconductor packaging materials, including PI and temporary bonding adhesives, have also seen initial orders, indicating a strong market entry [9]