Hwatsing Technology (SH:688120) Ping An Securities·2024-04-29 02:30Investment Rating - The report maintains a "Recommendation" rating for the company [2][6] Core Viewpoints - 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 [4][6] - In Q1 2024, the company reported a revenue of 680 million yuan, a 10.40% increase year-on-year, with a net profit of 202 million yuan, reflecting a 4.27% year-on-year growth [4][6] - The company is actively developing new products and technologies, particularly in CMP equipment, which saw sales revenue of 2.278 billion yuan in 2023, a 59.2% increase year-on-year [4][6] Financial Performance Summary - For 2023, the company reported a gross margin of 46.02% and a net margin of 28.86%, with a total expense ratio of 21.83% [4][6] - The projected revenues for 2024 to 2026 are 3.580 billion yuan, 4.931 billion yuan, and 6.536 billion yuan respectively, with corresponding net profits of 1.013 billion yuan, 1.347 billion yuan, and 1.744 billion yuan [5][9] - The company's EPS is expected to grow from 6.38 yuan in 2024 to 10.97 yuan in 2026, with a P/E ratio decreasing from 25.5 to 14.8 over the same period [5][9] Business Development and Strategy - The company is expanding its business model to include both equipment and services, benefiting from the domestic semiconductor industry's growth [6][8] - New product developments include the Universal H300 CMP machine and the Versatile-GP300 thinning polishing machine, which are expected to meet advanced packaging and wafer manufacturing needs [6][8] - The company has established itself as a professional foundry for wafer regeneration, achieving a production capacity of 100,000 wafers per month [6][8]