Piotech (SH:688072) KAIYUAN SECURITIES·2024-05-06 08:30Investment Rating - The investment rating for the company is "Buy" (maintained) [2][4]. Core Views - The company has shown significant revenue growth in 2023, with a year-on-year increase of 58.6%, reaching 2.705 billion yuan, and a net profit growth of 79.82%, amounting to 663 million yuan [4]. - The first quarter of 2024 saw a revenue of 472 million yuan, representing a year-on-year increase of 17.25%, although it experienced a quarter-on-quarter decline of 52.94% [4]. - The company is expected to benefit from a recovery in the industry cycle, with a substantial order backlog of 6.423 billion yuan at the end of 2023, which is a 39.57% increase year-on-year [6]. Financial Performance Summary - In 2023, the company's thin film deposition equipment revenue was 2.57 billion yuan, up 52.51% year-on-year, with a gross margin of 50.76% [5]. - The company has made significant advancements in new processes and product development, leading to a successful validation of its first wafer-to-wafer bonding product and subsequent repeat orders [5]. - The company expects to ship over 1,000 reaction chambers in 2024, which would set a new historical high [5]. Future Earnings Forecast - The earnings forecast for 2024-2026 has been revised upwards, with expected net profits of 822 million yuan, 1.126 billion yuan, and 1.416 billion yuan respectively [4]. - The projected earnings per share (EPS) for the same period are 4.37 yuan, 5.98 yuan, and 7.52 yuan respectively [4]. - The current stock price corresponds to price-to-earnings (PE) ratios of 41.8, 30.5, and 24.3 for 2024, 2025, and 2026 respectively [4].