Hwatsing Technology (SH:688120) HUAXI Securities·2024-05-15 10:02Investment Rating - The report assigns an "Accumulate" rating to Huahai Qingke (688120) with a target price of 181.40 CNY, corresponding to a PE ratio of 29, 22, and 17 for the years 2024, 2025, and 2026 respectively [2][3]. Core Insights - The company reported a rapid growth in 2023, achieving a revenue of 2.508 billion CNY, a year-on-year increase of 52%, with Q4 revenue reaching 668 million CNY, up 30% year-on-year [2]. - The net profit attributable to shareholders for 2023 was 724 million CNY, reflecting a 44% increase, while the net profit excluding non-recurring items was 608 million CNY, up 60% year-on-year [2]. - The company expects revenue for Q1 2024 to be 680 million CNY, a 10% year-on-year increase, with net profit attributable to shareholders and net profit excluding non-recurring items projected at 202 million CNY and 172 million CNY, respectively, showing a slower growth rate of 4% and 3% year-on-year [2]. - The company has a strong order backlog, with inventory and contract liabilities at 2.732 billion CNY and 1.226 billion CNY, respectively, indicating a 19% and 8% year-on-year increase [2]. Summary by Sections Company Overview - Huahai Qingke is a high-end semiconductor equipment supplier with core proprietary intellectual property, focusing on CMP equipment, thinning equipment, cutting equipment, and related services [7]. Earnings Forecast and Investment Recommendations - Revenue projections for 2024-2026 are 3.500 billion CNY, 4.740 billion CNY, and 6.034 billion CNY, representing year-on-year growth rates of 40%, 35%, and 27% respectively [8]. - Net profit forecasts for the same period are 1.009 billion CNY, 1.333 billion CNY, and 1.699 billion CNY, with year-on-year growth rates of 39%, 32%, and 27% [8]. - The expected EPS for 2024-2026 is 6.35 CNY, 8.39 CNY, and 10.69 CNY [8].