Huate Gas(SH:688268) EBSCN·2024-04-13 16:00Investment Rating - The report maintains a rating of "Accumulate" for the company [4]. Core Views - The company experienced a decline in revenue and net profit in 2023 due to weak semiconductor demand and falling prices of rare gases, with revenue decreasing by 16.80% year-on-year to 1.5 billion yuan and net profit decreasing by 17.18% to 171 million yuan [1][9]. - Despite the revenue decline, the company improved its gross margins for specialty gases and industrial gases due to an increase in high-value product sales and a decrease in raw material costs [9]. - The company is focusing on expanding its product offerings and supply chain, achieving over 90% customer coverage among domestic IC manufacturers with 8-inch and larger wafers [2]. Summary by Sections Financial Performance - In 2023, the company's specialty gas revenue was 1.023 billion yuan, down 22.67% year-on-year, with lithography and mixed gas revenue dropping 57.73% to 253 million yuan [9]. - The company reported a gross margin increase for specialty gases and industrial gases by 5.32 percentage points and 1.62 percentage points, respectively [9]. - The company’s operating expenses increased, with sales, management, R&D, and financial expense ratios rising to 5.83%, 5.93%, 3.36%, and 1.60% respectively [9]. Future Outlook - The company has adjusted its profit forecasts for 2024-2025 due to the weak semiconductor demand and delayed new product launches, projecting net profits of 235 million yuan and 327 million yuan for 2024 and 2025, respectively [10]. - The establishment of new production bases and the introduction of new products are expected to enhance the company's market position and revenue growth in the specialty gas sector [10]. Strategic Initiatives - The company is actively expanding its product lines and supply chain, with plans for new production bases in Jiangxi, Jiangsu, and Sichuan, funded through convertible bonds [2]. - The company aims to enhance its overseas sales capabilities through acquisitions and new projects, such as the gas production project in Thailand [2].