Hwatsing Technology (SH:688120) Soochow Securities·2024-04-28 18:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved significant revenue growth in 2023, with total revenue reaching 2.508 billion yuan, a year-on-year increase of 52.11%. The revenue from CMP equipment sales was 2.278 billion yuan, up 59.2% year-on-year [3][9] - The company's net profit attributable to shareholders was 724 million yuan, reflecting a year-on-year growth of 44.29% [3][9] - The report highlights the company's stable profitability and a general decrease in expense ratios, with a gross margin of 46.02% in 2023, slightly down from the previous year [11][14] Summary by Sections Financial Performance - In 2023, the company reported total revenue of 2.508 billion yuan, with a year-on-year growth of 52.11%. The net profit attributable to shareholders was 724 million yuan, up 44.29% year-on-year. The first quarter of 2024 saw revenue of 680 million yuan, a 10.4% increase year-on-year [3][9][18] - The gross margin for 2023 was 46.02%, with a slight decrease of 1.71 percentage points year-on-year. The net profit margin was 28.86%, down 1.56 percentage points year-on-year [11][14] Product Development and Market Expansion - The company is focusing on enhancing its product line based on CMP equipment, achieving over 90% coverage of CMP process types in mature processes for logic, DRAM, and 3D NAND storage chips. It is also expanding into advanced packaging and compound semiconductor markets [4][16] - The introduction of the 12-inch ultra-precision wafer thinning machine Versatile-GP300 has filled a gap in the domestic chip equipment industry, with successful deliveries to leading integrated circuit companies [4][17] Future Earnings Forecast - The report projects the company's net profit attributable to shareholders to be 1.087 billion yuan in 2024 and 1.381 billion yuan in 2025, with an expected net profit of 1.580 billion yuan in 2026. The current market capitalization corresponds to dynamic P/E ratios of 24, 19, and 16 for the respective years [18][20]