SWEC(SH:600641) Orient Securities·2025-09-28 12:36Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 20.25 CNY based on a 75x PE valuation for 2025 [3][6]. Core Insights - The company has seen revenue and profit growth in its bismuth processing business, with significant contributions from its semiconductor equipment core components [2][10]. - The earnings per share (EPS) forecasts for 2025, 2026, and 2027 are 0.27 CNY, 0.30 CNY, and 0.37 CNY respectively, reflecting adjustments in the main business structure and revenue predictions [3][11]. - The bismuth business achieved sales revenue of 525 million CNY in the first half of 2025, accounting for 75% of total revenue, with a quarterly revenue increase of 450% in Q2 [10]. - The company has successfully delivered 8 units of 12-inch ion implanters, marking a significant milestone in domestic production capabilities [10]. - Collaboration with the parent group has enhanced the company's semiconductor equipment business, particularly in key component localization [10]. Financial Summary - The company's projected revenues for 2025, 2026, and 2027 are 1,892 million CNY, 2,395 million CNY, and 2,849 million CNY, respectively, with year-on-year growth rates of 225.4%, 26.5%, and 19.0% [5][14]. - Operating profit is expected to rebound significantly, with projections of 171 million CNY, 212 million CNY, and 309 million CNY for 2025, 2026, and 2027, respectively, indicating growth rates of 646.0%, 24.2%, and 45.8% [5][14]. - The net profit attributable to the parent company is forecasted to be 250 million CNY, 277 million CNY, and 343 million CNY for the years 2025, 2026, and 2027, with growth rates of 132.7%, 10.8%, and 23.5% [5][14]. - The company's gross margin is projected to decline to 29.8% in 2025, stabilizing at 29.4% in the following years [5][14].