KINGSEMI(SH:688037) KAIYUAN SECURITIES·2024-02-01 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1][18] Core Views - The company expects its 2023 revenue to be between 1.68 billion to 1.75 billion yuan, representing a year-over-year increase of 21.31% to 26.37%. The net profit attributable to shareholders is projected to be between 230 million to 265 million yuan, with a year-over-year growth of 14.91% to 32.39% [1] - For Q4 2023, the company anticipates revenue of 474 million to 544 million yuan, showing a year-over-year change of -3% to +11.34% and a quarter-over-quarter change of -7.31% to +6.39%. The net profit for the same quarter is expected to be between 10 million to 40 million yuan, with a year-over-year decline of 82.9% to -21.64% and a quarter-over-quarter decline of 88.44% to -47.05% [1] - The company has slightly adjusted its 2023 profit forecast downwards while raising the profit forecasts for 2024 and 2025. The expected net profits for 2023, 2024, and 2025 are 259 million, 410 million, and 579 million yuan respectively, with corresponding EPS of 1.88, 2.98, and 4.20 yuan [1] - The current stock price corresponds to a P/E ratio of 48.1, 30.4, and 21.6 for 2023, 2024, and 2025 respectively [1] - The company is optimistic about the continuous increase in orders due to the recovery in industry demand, maintaining a "Buy" rating [1] Financial Performance Summary - The company reported a steady growth in annual performance, with a sufficient backlog of orders supporting future performance growth [4][19] - The company plans to repurchase shares and core employees are increasing their holdings, reflecting confidence in future development [4][19] - The company’s revenue for 2023 is projected at 1.75 billion yuan, with a year-over-year growth of 26.4% [20] - The net profit for 2023 is expected to be 259 million yuan, with a year-over-year increase of 29.4% [20] - The gross margin is projected to be 38.9% in 2023, increasing to 42.6% in 2024 and 44.1% in 2025 [20] - The net profit margin is expected to be 14.8% in 2023, rising to 16.4% in 2024 and 16.2% in 2025 [20] - The return on equity (ROE) is projected to be 11.1% in 2023, increasing to 15.2% in 2024 and 17.9% in 2025 [20]