Skyverse Technology (SH:688361) EBSCN·2024-02-28 16:00Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company's profitability has significantly improved, with a revenue increase of 75% year-on-year to 890 million yuan in 2023, and a net profit surge of 1113% to 140 million yuan [2]. - The rapid growth in revenue is attributed to enhanced market competitiveness of the company's products and the increasing demand for domestic semiconductor testing and measurement equipment [2]. - The company is expected to continue benefiting from the ongoing development of multiple R&D projects, leading to a gradual decrease in overall expense ratios and improved profitability [2]. Summary by Sections Financial Performance - In Q4 2023, the company achieved a revenue of 300 million yuan, a year-on-year increase of 20.6% and a quarter-on-quarter growth of 36.3% [2]. - The net profit for Q4 2023 was 63 million yuan, reflecting an 85.9% year-on-year increase and a 90.9% quarter-on-quarter increase [2]. - The company reported a turnaround in its net profit excluding non-recurring items, reaching 16 million yuan, a year-on-year increase of 686.6% [2]. Market Opportunity - The domestic semiconductor testing and measurement equipment market is rapidly expanding, with a significant push for domestic alternatives [2]. - The global measurement and testing equipment market was valued at 7.65 billion USD in 2020, with China accounting for 27.4% of this market [2]. Product Development - The company has a strong advantage in non-graphical wafer defect detection equipment, with two key products, SPRUCE-600 and SPRUCE-800, in mass production [2]. - Several measurement devices are in intensive R&D and validation stages, with key size measurement equipment for 2Xnm process nodes making good progress [2]. Earnings Forecast and Valuation - The net profit forecasts for 2023 to 2025 have been adjusted to 142 million, 241 million, and 369 million yuan respectively, reflecting increases of 3.6%, 2.6%, and 2.5% from previous estimates [3]. - The current stock price corresponds to an EPS of 0.45, 0.75, and 1.15 yuan for 2023, 2024, and 2025, with P/E ratios of 139, 82, and 54 respectively [3].