HHCK(SH:688535) Haitong Securities·2024-04-09 16:00Investment Rating - The investment rating for the company is maintained at "Neutral" [1][34]. Core Views - The report highlights that the company has passed multiple customer assessments for its products GMC, FC, and LMC, indicating strong client validation [1][17]. - The company is positioned as a significant domestic supplier of epoxy encapsulation materials and electronic adhesives, with a focus on breaking overseas monopolies in the semiconductor packaging materials sector [9][21]. Financial Summary - Revenue for 2022 was 303 million yuan, with a decline to 283 million yuan in 2023, but projected to recover to 324 million yuan in 2024E, reflecting a year-on-year growth of 14.7% [2][3]. - Net profit decreased from 41 million yuan in 2022 to 32 million yuan in 2023, with expectations of recovery to 36 million yuan in 2024E, showing a growth of 14.7% [2][3]. - The company’s EPS is projected to increase from 0.39 yuan in 2023 to 0.45 yuan in 2024E [2][3]. Product and Market Insights - The company’s main products include epoxy encapsulation materials and electronic adhesives, with a significant focus on the advanced packaging sector [9][19]. - Revenue from epoxy encapsulation materials is expected to grow at a rate of 12.7% in 2024E, followed by 17.6% in 2025E and 2026E [9][20]. - The electronic adhesive segment is projected to see substantial growth, with expected increases of 37.8% in 2024E and 48.4% in both 2025E and 2026E [19][20]. Valuation and Market Position - The report estimates the company's reasonable market value range to be between 32.66 billion yuan and 36.29 billion yuan, translating to a per-share value of 40.48 yuan to 44.97 yuan [21][34]. - The company is expected to maintain a competitive edge in the domestic market due to its innovative capabilities and product offerings [9][21].