KINGSEMI(SH:688037) ZHONGTAI SECURITIES·2024-05-06 02:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% compared to the benchmark index within the next 6 to 12 months [2][12]. Core Insights - The company reported a revenue of 1.717 billion yuan for 2023, a year-on-year increase of 24%, and a net profit of 251 million yuan, also up 25% year-on-year. The gross margin improved to 42.53%, an increase of 4.13 percentage points [14]. - The company experienced a decline in revenue for Q1 2024, down nearly 15% year-on-year, primarily due to the order rhythm and increased employee costs [15][23]. - The company has successfully launched new products, including advanced cleaning equipment and immersion coating machines, which have received positive feedback from major clients [24][33]. Financial Summary - The company’s total assets are projected to grow from 4.302 billion yuan in 2023 to 9.029 billion yuan by 2026, with a significant increase in both current and non-current assets [7]. - Revenue is expected to rise from 1.717 billion yuan in 2023 to 4.032 billion yuan by 2026, with a compound annual growth rate (CAGR) of approximately 27% [20]. - Net profit is forecasted to increase from 251 million yuan in 2023 to 620 million yuan by 2026, reflecting a strong growth trajectory [20]. Operational Developments - The company has expanded its production capabilities with the new Shanghai Lingang plant, which began operations in March 2024, focusing on advanced manufacturing processes [33]. - The company is actively pursuing international expansion, with subsidiaries established in Japan and Guangzhou to enhance resource acquisition and product development [33]. Investment Recommendations - The report suggests that the company is well-positioned to benefit from the trend of domestic equipment localization, particularly in the semiconductor sector, which is expected to drive significant order growth [33].