CFMEE(SH:688630) Great Wall Securities·2024-05-16 10:32Investment Rating - The report upgrades the investment rating to "Buy" based on the expected strong growth in the company's performance and market demand for PCB and semiconductor equipment [5][32]. Core Views - The company has shown continuous revenue growth, with a 2023 revenue of 829 million yuan, representing a year-on-year increase of 27.07%, and a net profit of 179 million yuan, up 31.28% year-on-year [1][2]. - The company is benefiting from the high-end upgrade of its product system, particularly in the PCB market, which has led to a significant increase in market penetration and revenue growth [2]. - The company has a robust order backlog for the second quarter of 2024, with expectations for continued growth driven by both domestic and international customer demand [2][11]. Financial Performance - In 2023, the company's gross margin was 42.62%, a slight decrease of 0.55 percentage points year-on-year, while the net profit margin improved by 0.69 percentage points to 21.63% [2]. - The company reported a net profit of 179 million yuan for 2023, with projections for 2024-2026 net profits of 271 million yuan, 351 million yuan, and 498 million yuan, respectively [5][14]. - The earnings per share (EPS) for 2023 was 1.36 yuan, with forecasts of 2.06 yuan, 2.67 yuan, and 3.79 yuan for the years 2024, 2025, and 2026 [5][25]. Business Development - The company is expanding its product offerings in the semiconductor field, with significant advancements in direct-write lithography technology and a strong focus on high-end PCB products [8][12]. - The company has successfully entered international markets, with equipment sales to countries such as Japan, Vietnam, Thailand, and Australia, indicating a strong growth trajectory in overseas business [12]. - The company is actively pursuing strategic partnerships, such as with VTEC in Japan, to enhance its market presence and technological capabilities [12].