KINGSEMI(SH:688037) EBSCN·2026-01-15 07:06Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future investment returns [4][6]. Core Insights - The coating and developing equipment market is highly concentrated, with a pressing demand for domestic alternatives. The company is the only domestic provider capable of offering mass production front-end coating and developing equipment, positioning it well to benefit from this urgent need for domestic substitution [1]. - The semiconductor equipment market remains robust, with global sales expected to reach $115.7 billion in 2025, driven primarily by advanced logic and memory demand. The company is poised to benefit from this growth as domestic semiconductor equipment companies are likely to see increased bidding activity [2]. - In the first three quarters of 2025, the company reported a revenue of 990 million yuan, a year-on-year decline of 10.35%, but overall orders showed a year-on-year increase. The front-end equipment orders accounted for 60% of total orders, with significant growth in orders for high-end chemical cleaning machines [3]. Financial Summary - The company's revenue is projected to grow from 1,717 million yuan in 2023 to 3,508 million yuan in 2027, with a compound annual growth rate (CAGR) of approximately 39.42% [5][10]. - The net profit forecast for 2025 has been revised down to 64 million yuan, a decrease of 81% from previous estimates, with projections of 255 million yuan for 2026 and 525 million yuan for 2027 [4][10]. - The earnings per share (EPS) is expected to decline to 0.32 yuan in 2025, before rebounding to 1.26 yuan in 2026 and 2.60 yuan in 2027 [5][10]. Market Position and Performance - The company has established itself as a leader in the domestic market for advanced packaging and developing equipment, securing repeat orders from major clients such as TSMC and other leading domestic manufacturers [3]. - The company's financial metrics indicate a projected return on equity (ROE) of 15.14% by 2027, reflecting a recovery in profitability as the market conditions improve [12].