KFMI(SZ:300666) Guoxin Securities·2025-07-04 12:46Investment Rating - The report assigns an "Outperform" rating to the company for the first time [6]. Core Views - The company is expected to achieve significant revenue growth in the semiconductor ultra-pure target material sector, with a second growth curve anticipated from precision components [4][38]. - Revenue for 2025-2027 is projected to grow by 30.3%, 27.14%, and 28.0%, reaching 46.99 billion, 59.89 billion, and 76.67 billion yuan respectively, with corresponding net profits of 5.21 billion, 6.87 billion, and 9.04 billion yuan [30][36]. Summary by Sections Financial Performance - In Q1 2025, the company reported revenue of 1 billion yuan, a year-on-year increase of 29.53%, and a net profit of 157 million yuan, up 163.58% year-on-year [1]. - For 2024, the company achieved revenue of 3.605 billion yuan, a 38.57% increase, and a net profit of 401 million yuan, reflecting a 56.79% increase [2]. - The overall gross margin for 2024 was 28.17%, with the ultra-pure target material segment achieving a gross margin of 31.35% [2][23]. Business Segments - The ultra-pure target material business generated sales of 2.333 billion yuan in 2024, accounting for 64.73% of total revenue, benefiting from product structure optimization and increased use of domestic raw materials [2][25]. - The precision components segment, covering key semiconductor processes, generated 887 million yuan in sales, representing 24.60% of total revenue [2][25]. Market Position - The company has established itself as a leading supplier of ultra-pure metal sputtering targets in China, serving major global semiconductor manufacturers such as TSMC and SMIC [3][38]. - The company has successfully expanded its product line in precision components, producing over 40,000 types of parts used in various semiconductor processes [3][10]. Valuation - The report estimates the company's reasonable valuation range at 20.84 billion to 22.92 billion yuan, corresponding to a share price of 78.64 to 84.49 yuan [34][36]. - The current stock price is 73.60 yuan, indicating a premium of 6.9% to 17.5% relative to the estimated valuation [6][34].