KFMI(SZ:300666) Bank of China Securities·2025-09-18 06:07Investment Rating - The report maintains an "Accumulate" rating for the company [1][5] Core Views - The company has demonstrated strong revenue and profit growth, with a 28.71% year-on-year increase in total revenue to RMB 2.095 billion in the first half of 2025, and a 56.79% increase in net profit attributable to shareholders to RMB 252.65 million [3][8][9] - The company is well-positioned in the ultra-pure metal sputtering target market and the precision components business, which are expected to drive continued growth [3][5] Financial Performance Summary - For the first half of 2025, total revenue reached RMB 2,095 million, up 28.71% year-on-year, while net profit attributable to shareholders was RMB 252.65 million, reflecting a 56.79% increase [9] - The second quarter of 2025 saw revenue of RMB 1,094.24 million, a 27.97% increase year-on-year, but net profit decreased by 5.96% to RMB 95.44 million compared to the same quarter in 2024 [10] - The company's gross margin for the first half of 2025 was 29.72%, a decrease of 1.27 percentage points year-on-year [8] Growth Projections - The company is expected to benefit from the domestic semiconductor industry's growth, with projected revenues of RMB 4.491 billion, RMB 5.680 billion, and RMB 7.191 billion for 2025, 2026, and 2027 respectively, representing growth rates of 24.6%, 26.5%, and 26.6% [7] - Earnings per share (EPS) are projected to be RMB 1.97, RMB 2.48, and RMB 3.00 for 2025, 2026, and 2027, with corresponding price-to-earnings (PE) ratios of 40.8, 32.4, and 26.8 [5][7] Strategic Initiatives - The company plans to raise up to RMB 1.947829 billion through a private placement to enhance its sputtering target and precision components capabilities, which includes projects for integrated circuit equipment and ultra-pure metal sputtering targets [8]