Hwatsing Technology (SH:688120) HUAXI Securities·2025-08-29 13:38Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company reported a revenue of 1.95 billion yuan for H1 2025, representing a year-on-year increase of 30.28%, with Q2 revenue at 1.037 billion yuan, up 27.05% year-on-year, aligning with market expectations [3] - The main revenue driver is the CMP equipment, with significant growth in new orders for advanced processes, and a notable increase in orders for thinning equipment in advanced packaging [3] - The gross profit margin remains high at 46.08%, with a slight decline in net profit margin due to increased expenses related to the acquisition of a subsidiary [4] Summary by Sections Financial Performance - H1 2025 net profit attributable to shareholders was 505 million yuan, a year-on-year increase of 16.82%, while the net profit margin was 25.92%, down 2.99 percentage points year-on-year [4] - The company expects substantial growth in new orders in H2 2025, driven by the expansion of advanced processes and non-CMP businesses [3] Business Segments - CMP equipment orders have a significant share in new contracts, with advanced processes gaining traction among major clients [5] - The advanced packaging segment is seeing rapid growth, with successful validation of various equipment types [5] Future Projections - Revenue forecasts for 2025-2027 are set at 4.55 billion, 5.87 billion, and 7.59 billion yuan, respectively, with corresponding net profit forecasts of 1.35 billion, 1.73 billion, and 2.22 billion yuan [6] - The report indicates a projected EPS of 3.81, 4.89, and 6.28 yuan for the same period, with PE ratios of 34.09, 26.56, and 20.69 [6]