Hwatsing Technology (SH:688120) Changjiang Securities·2025-09-05 11:14Investment Rating - The investment rating for the company is "Buy" and it is maintained [8] 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 a net profit attributable to shareholders of 505 million yuan, up 16.82% year-on-year [2][5] - In Q2 2025, the company achieved a revenue of 1.037 billion yuan, reflecting a year-on-year growth of 27.05%, and a net profit of 272 million yuan, which is an 18.01% increase year-on-year [2][5] - The company has made significant progress in advanced process equipment, with a high proportion of CMP orders and substantial market share among domestic clients [11] - The platform development is steadily advancing, with various equipment types gaining market recognition, including thinning equipment, cutting equipment, and edge polishing equipment [11] - The company has a strong order backlog and inventory, with contract liabilities reaching 1.755 billion yuan, a 6.9% increase from the end of Q1 2025, and inventory amounting to 3.703 billion yuan, up 6.2% year-on-year [11] - R&D expenses for Q2 2025 were 135 million yuan, with an R&D expense ratio of 13.0%, an increase of 1.6 percentage points year-on-year [11] - The company is expected to achieve net profits attributable to shareholders of 1.3 billion yuan and 1.69 billion yuan for 2025 and 2026, respectively, corresponding to PE ratios of 34 and 26 times [11] Summary by Sections Financial Performance - H1 2025 revenue: 1.95 billion yuan, +30.28% YoY [2] - H1 2025 net profit: 505 million yuan, +16.82% YoY [2] - Q2 2025 revenue: 1.037 billion yuan, +27.05% YoY [2] - Q2 2025 net profit: 272 million yuan, +18.01% YoY [2] Market Position and Product Development - High market share in advanced process CMP equipment among domestic clients [11] - Significant order growth for thinning equipment and successful market entry for various new equipment types [11] - Development of ion implantation machines and other advanced semiconductor equipment [11] R&D and Future Outlook - R&D expenses for Q2 2025: 135 million yuan, 13.0% of revenue [11] - Expected net profits for 2025 and 2026: 1.3 billion yuan and 1.69 billion yuan, respectively [11]