Piotech (SH:688072) Changjiang Securities·2024-02-29 16:00Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a significant increase in revenue and net profit for 2023, with revenue reaching 2.705 billion yuan, a year-on-year increase of 58.60%, and net profit attributable to shareholders of 666.5 million yuan, up 80.38% [5][6]. - The company has a strong order backlog exceeding 6.4 billion yuan at the end of 2023, which is approximately 39% higher than the previous year, ensuring future growth [5][6]. - The company's R&D investment has been substantial, with a compound annual growth rate (CAGR) of 72.09% from 2019 to 2022, and R&D expenses for the first three quarters of 2023 amounting to 354 million yuan, a year-on-year increase of 60.33% [5][6]. - The company has set ambitious growth targets for its stock incentive plan, aiming for revenue growth rates of 95%, 160%, and 210% for the years 2024 to 2026, respectively [5][6]. - The company is benefiting from domestic semiconductor manufacturing trends, with significant advancements in new processes and products, leading to increased sales and market presence [6]. Summary by Sections Financial Performance - In Q4 2023, the company achieved revenue of 1.002 billion yuan, a year-on-year increase of 40.33%, and net profit of 394 million yuan, up 200.50% [5][6]. - The net profit margin for Q4 2023 was 39.29%, reflecting a significant improvement in profitability [5][6]. R&D and Product Development - The company has expanded its product framework and achieved notable results in new process applications, with increased production scale and sales revenue [6]. - The company’s focus on R&D has led to enhanced product capabilities and a broader customer base [5][6]. Market Outlook - The company is expected to see net profits of 802 million yuan and 1.096 billion yuan in 2025 and 2026, respectively, with corresponding price-to-earnings ratios of 45x and 33x [6].