Hwatsing Technology (SH:688120) Soochow Securities·2025-08-29 07:14Investment Rating - The report maintains a "Buy" rating for Huahai Qingke (688120) [1] Core Views - The company continues to experience high growth in performance, driven by its leadership in CMP and thinning equipment [7] - Revenue for H1 2025 reached 1.95 billion yuan, a year-on-year increase of 30.3%, while net profit attributable to shareholders was 505 million yuan, up 16.8% year-on-year [7] - The company is expected to maintain strong revenue growth, with projected revenues of 4.55 billion yuan in 2025, representing a 33.67% year-on-year increase [1] Financial Performance Summary - Revenue and Profit Forecasts: - Total revenue is projected to grow from 2.51 billion yuan in 2023 to 4.55 billion yuan in 2025, with a compound annual growth rate (CAGR) of 33.67% [1] - Net profit attributable to shareholders is expected to increase from 723.75 million yuan in 2023 to 1.38 billion yuan in 2025, reflecting a CAGR of 34.83% [1] - Earnings Per Share (EPS) is forecasted to rise from 2.05 yuan in 2023 to 3.90 yuan in 2025 [1] - The current price-to-earnings (P/E) ratio is projected to decrease from 63.47 in 2023 to 33.29 in 2025, indicating improved valuation [1] Market Position and Product Development - The company has seen an increase in market share for CMP equipment, with significant orders and validation from leading clients [7] - The thinning and cutting equipment segments are experiencing rapid growth, with new models being developed to enhance market competitiveness [7] - The company has made substantial investments in research and development, with R&D expenses increasing by 40.4% year-on-year to 246 million yuan in H1 2025 [7]