Hwatsing Technology (SH:688120) ZHONGTAI SECURITIES·2024-05-06 02:20Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 15% in the next 6 to 12 months [13]. Core Insights - The company reported a revenue of 2.508 billion yuan for 2023, representing a year-on-year growth of 52%. The net profit attributable to the parent company was 724 million yuan, up 44% year-on-year [2]. - The company is a leading domestic CMP equipment manufacturer, with significant market share growth in various customer segments, leading to a 59% increase in CMP equipment sales to 2.278 billion yuan in 2023 [3]. - The company has a strong future revenue momentum, supported by a favorable inventory structure and increasing accounts receivable, indicating good operational health [3]. Financial Performance Summary - Revenue Forecasts: - 2022A: 1.649 billion yuan - 2023A: 2.508 billion yuan - 2024E: 3.461 billion yuan - 2025E: 4.603 billion yuan - 2026E: 5.800 billion yuan - Year-on-year growth rates are projected to decline from 105% in 2022 to 26% in 2026 [1]. - Net Profit Forecasts: - 2022A: 502 million yuan - 2023A: 724 million yuan - 2024E: 990 million yuan - 2025E: 1.350 billion yuan - 2026E: 1.680 billion yuan - Year-on-year growth rates are projected to decline from 153% in 2022 to 25% in 2026 [1]. - Earnings Per Share (EPS): - 2023A: 6.23 yuan - 2024E: 8.49 yuan - 2025E: 10.57 yuan [1]. - Valuation Ratios: - Price-to-Earnings (P/E) ratio is expected to decrease from 54.1 in 2022 to 16.1 in 2026, indicating improving valuation as earnings grow [1]. Product Development and Market Expansion - The company is actively upgrading its equipment based on customer needs and has launched new products, including the Versatile-GP300 thinning and polishing machine, which is gaining traction in the market [4][5]. - The company has successfully developed and shipped its first 12-inch single wafer cleaning machine, indicating progress in diversifying its product offerings [5]. Future Profitability Projections - The report projects net profits of 990 million yuan for 2024, 1.350 billion yuan for 2025, and 1.680 billion yuan for 2026, reflecting a strong growth trajectory [9].