AMEC(SH:688012) ZHONGTAI SECURITIES·2024-04-28 06:02Investment Rating - The investment rating for the company is "Buy" (maintained) with a market price of 135.04 CNY per share [1]. Core Insights - The company reported a significant revenue growth of 31% year-on-year in Q1 2024, driven by a remarkable increase in etching equipment sales, which grew over 64% [3][4]. - The net profit for Q1 2024 decreased by 10% year-on-year, primarily due to a reduction in the fair value of listed company shares and a decrease in government subsidies [4]. - The company is experiencing rapid growth in its etching business, with new orders increasing by 60% in 2023, and new product launches enhancing its market position [5][6]. - The company maintains a positive outlook for 2024-2026, with net profit forecasts of 21.2 billion, 26.8 billion, and 34.7 billion CNY respectively, corresponding to P/E ratios of 40, 31, and 24 [6]. Financial Performance Summary - The company's revenue for 2022 was 4,740 million CNY, projected to grow to 14,107 million CNY by 2026, with a compound annual growth rate (CAGR) of approximately 29% [1]. - Net profit is expected to increase from 1,170 million CNY in 2022 to 3,471 million CNY in 2026, reflecting a CAGR of around 29% [1]. - The earnings per share (EPS) is projected to rise from 1.89 CNY in 2022 to 5.60 CNY in 2026 [1]. - The company's return on equity (ROE) is expected to improve from 8% in 2022 to 13% in 2026 [1]. Operational Highlights - The company reported a significant increase in contract liabilities and inventory, indicating strong demand and production activity [3]. - The gross margin for Q1 2024 was 44.94%, slightly down from the previous year, reflecting increased costs associated with higher R&D and operational expenses [3][4]. - The company is focusing on advanced packaging and compound semiconductor technologies, which are expected to drive future growth [6].