DING LONG(SZ:300054) China Post Securities·2025-05-28 06:22Investment 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 multiple breakthroughs. 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 has diversified its semiconductor business layout, which is expected to enhance future performance after the conversion of R&D results [3] Company Overview - Latest closing price: 27.91 yuan - Total shares: 938 million, circulating shares: 728 million - Total market capitalization: 26.2 billion yuan, circulating market capitalization: 20.3 billion yuan - 52-week high/low: 31.55/18.38 - Debt-to-asset ratio: 34.1% - Price-to-earnings ratio: 49.84 - Largest shareholder: Zhu Shuangquan [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 company’s earnings per share (EPS) are projected to be 0.75 yuan, 1.02 yuan, and 1.37 yuan for 2025, 2026, and 2027 respectively [13] Business Segments - CMP polishing liquid and cleaning liquid sales reached 215 million yuan in 2024, a year-on-year increase of 178.89% [5] - The semiconductor display materials segment achieved sales of 402 million yuan in 2024, a year-on-year increase of 131.12% [7] - The high-end wafer photoresist business is progressing rapidly, with over 20 products developed and 12 samples sent for client verification [8]