Piotech (SH:688072) Shanxi Securities·2024-02-02 16:00Investment Rating - The report gives an "Accumulate-A" rating for the company, indicating a positive outlook for investment [2]. Core Views - The company is a leader in the thin film deposition equipment sector, with strong performance and long-term growth certainty. It focuses on the research and production of thin film deposition equipment, which is widely used in the manufacturing of integrated circuit logic chips and memory chips [2][11]. - The company has a robust order book, with sales orders expected to exceed 6.4 billion yuan by the end of 2023, reflecting a year-on-year increase of 39.07% [20]. - The company maintains a high R&D investment rate, which is above that of comparable companies, and has a clear equity structure with significant backing from the National Integrated Circuit Fund [18][19]. Summary by Sections Company Performance - The company has seen significant revenue growth, with 2022 revenue reaching 1.706 billion yuan, a 125% increase from the previous year. For the first three quarters of 2023, revenue was 1.703 billion yuan, up 71.71% year-on-year [20][21]. - The net profit for 2023 is projected to be 609 million yuan, representing a 65.4% increase from the previous year [3]. Market Position and Technology - The thin film deposition equipment market is characterized by high technical barriers and significant potential for domestic substitution. The global market for thin film deposition equipment was approximately 23 billion USD in 2022, with a 22% market share in the semiconductor equipment sector [30][32]. - The company has developed a range of products including PECVD, ALD, SACVD, and HDPCVD, which are essential for advanced semiconductor manufacturing processes [11][13]. Financial Forecast and Valuation - The company is expected to achieve net profits of 609 million yuan, 836 million yuan, and 1.096 billion yuan for 2023, 2024, and 2025 respectively, with corresponding EPS of 3.24, 4.44, and 5.83 yuan [3][20]. - The P/E ratios for 2023, 2024, and 2025 are projected to be 49.3, 35.9, and 27.4 respectively, indicating a favorable valuation trend [3].