Hwatsing Technology (SH:688120) Minsheng Securities·2024-04-28 12:30Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the coming year [4]. Core Insights - The company achieved a revenue of 2.508 billion yuan in 2023, representing a year-on-year growth of 52.11%, and a net profit attributable to shareholders of 724 million yuan, up 44.29% year-on-year [2]. - The company is a leader in the CMP equipment sector, benefiting from increased demand for semiconductor equipment from major domestic wafer manufacturers, while also enhancing its product competitiveness through ongoing R&D investments [2][3]. - The company has diversified its product lines, with significant orders for thinning equipment and successful validation of cleaning equipment for various semiconductor applications [3]. - The company is actively investing in the semiconductor industry to enhance synergy, including establishing venture capital firms and expanding its portfolio in ion implantation equipment [3]. Financial Summary - Revenue and profit forecasts for 2024-2026 are projected at 3.359 billion, 4.148 billion, and 5.221 billion yuan respectively, with net profits of 907 million, 1.141 billion, and 1.468 billion yuan [3][4]. - The company’s gross margin for 2023 was 46.02%, with a slight decrease from the previous year, while the gross margin for Q1 2024 improved to 47.92% [2]. - The projected PE ratios for 2024-2026 are 28, 23, and 18 respectively, reflecting a favorable valuation trend [4][8].