Hwatsing Technology (SH:688120) Huachuang Securities·2025-11-04 11:13Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 191.86 CNY [2][9]. Core Insights - The company reported a revenue of 1.244 billion CNY for Q3 2025, reflecting a year-over-year increase of 30.28% and a quarter-over-quarter increase of 19.97%. The net profit attributable to shareholders was 286 million CNY, showing a slight decline of 0.71% year-over-year but a 5.14% increase quarter-over-quarter [2][9]. - The company is focusing on opportunities in AI-driven advanced packaging, with significant investments in R&D and production capacity to enhance its core competitiveness. The market share of its CMP products is increasing, and the company is expanding its service offerings [9]. - The company's gross margin for Q3 2025 was 40.97%, down 4.11 percentage points year-over-year, primarily due to lower margins on new products and increased R&D expenses. The net profit margin was 22.99%, down 7.17 percentage points year-over-year [9]. - The company is actively developing new products and technologies to meet the demands of the semiconductor industry, particularly in advanced packaging and chip stacking technologies [9]. Financial Summary - Total revenue projections for the company are as follows: 3,406 million CNY in 2024, 4,571 million CNY in 2025, 5,903 million CNY in 2026, and 7,448 million CNY in 2027, with year-over-year growth rates of 35.8%, 34.2%, 29.1%, and 26.2% respectively [4][10]. - The net profit attributable to shareholders is projected to be 1,023 million CNY in 2024, 1,184 million CNY in 2025, 1,507 million CNY in 2026, and 1,863 million CNY in 2027, with growth rates of 41.4%, 15.7%, 27.3%, and 23.7% respectively [4][10]. - The earnings per share (EPS) are expected to increase from 2.90 CNY in 2024 to 5.27 CNY in 2027, reflecting a strong growth trajectory [4][10].