Hwatsing Technology (SH:688120) Changjiang Securities·2024-05-09 01:32Investment Rating - The investment rating for Huahai Qingke is "Buy" and is maintained [5]. Core Views - The company achieved a revenue of 2.508 billion yuan in 2023, representing a year-on-year increase of 52%, and a net profit of 724 million yuan, up 44% year-on-year. The non-recurring net profit reached 608 million yuan, marking a 60.05% increase year-on-year [6][7]. - The company maintains a strong order backlog, with inventory levels reaching a historical high of 2.732 billion yuan by the end of Q1 2024, supporting future performance growth [7][8]. - Significant investment in R&D has led to the continuous launch of new CMP equipment, with a notable increase in R&D personnel and expenditures [7][8]. Summary by Sections Financial Performance - In 2023, the company reported a total revenue of 2.508 billion yuan, with a net profit of 724 million yuan and a non-recurring net profit of 608 million yuan. The revenue for Q1 2024 was 680 million yuan, with a net profit of 202 million yuan [6][7]. - The gross margin for Q1 2024 was 47.92%, and the net margin was 29.72% [7]. Order Backlog and Inventory - As of Q4 2023, the company's inventory was 2.415 billion yuan, which increased to 2.732 billion yuan by Q1 2024. The contract liabilities were 1.328 billion yuan at the end of Q4 2023, indicating a stable order backlog [7][8]. R&D and Product Development - The company increased its R&D personnel by nearly 150, a growth of about 50%, with R&D expenses in Q4 2023 and Q1 2024 being 90 million yuan and 77 million yuan, respectively [7][8]. - New CMP equipment, such as the Universal H300, is expected to enter mass production in 2024, targeting various semiconductor sectors [7][8]. Market Outlook - The company is expected to achieve net profits of 1.02 billion yuan, 1.32 billion yuan, and 1.7 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 25, 20, and 15 [8].