GenTech(SH:688596) China Post Securities·2024-05-06 00:30Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on projected earnings growth [16][17]. Core Insights - The company achieved a revenue of 3.835 billion yuan in 2023, representing a year-on-year growth of 41.78%. The net profit attributable to the parent company was 401.34 million yuan, up 55.10% year-on-year [26][37]. - The company has a strong order backlog, with new contracts signed amounting to 6.6 billion yuan in 2023, a 60% increase year-on-year. As of Q1 2024, the backlog stood at 7.5 billion yuan, a 68% increase year-on-year [26][37]. - The company is positioned in the rapidly growing semiconductor equipment sector, with significant demand for domestic alternatives to foreign suppliers [4][26]. Financial Performance - Revenue projections for 2024, 2025, and 2026 are 5.437 billion yuan, 6.983 billion yuan, and 8.410 billion yuan, respectively, with corresponding net profits of 601 million yuan, 842 million yuan, and 1.093 billion yuan [17][29]. - The company reported a significant increase in its gas and advanced materials business, with a revenue growth of 73% in 2023 [26][29]. - The company's asset-liability ratio is 62.1%, indicating a moderate level of financial leverage [16][29]. Market Position and Strategy - The company is leveraging its core technologies to expand into the semiconductor equipment market, particularly in fluid systems, which are critical components in semiconductor manufacturing [4][26]. - The company has established partnerships with leading domestic semiconductor equipment manufacturers, enhancing its market presence and credibility [4][26]. - The focus on capital expenditure (Capex) and operational expenditure (Opex) is expected to drive sustainable growth, as the company capitalizes on increasing demand from the semiconductor industry [26][37].