KINGSEMI(SH:688037) Huajin Securities·2024-06-04 13:30Investment Rating - The report maintains an "Accumulate-A" rating for the company, indicating a positive outlook for future performance [14][26]. Core Views - The company has secured significant verification orders from key domestic clients and is in the process of establishing cooperation intentions with several other important clients, with some already entering the configuration confirmation and business process stages [2]. - The company launched the fully automated SiC wafer splitting machine KS-S200-2H1L in March 2024, expanding its product offerings in the small-size equipment market and successfully entering the wafer splitting field [3]. - The company reported strong new order intake in Q2 2024, with production, delivery, and acceptance plans aligning with expectations [14]. Financial Performance - In 2023, the company achieved revenue of 1.717 billion yuan, a year-on-year increase of 23.98%, and a net profit attributable to shareholders of 251 million yuan, up 25.21% year-on-year [14]. - The gross profit margin for 2023 was 42.53%, an increase of 4.13 percentage points compared to the previous year [14]. - The company’s order backlog at the end of 2023 was approximately 2.2 billion yuan (including tax) [14]. Product Segmentation - In 2023, revenue from photoresist coating and developing equipment reached 1.066 billion yuan, growing by 40.80% year-on-year, while single-wafer wet processing equipment generated 600 million yuan, up 9.09% year-on-year [14]. - The company is the only domestic provider of mass-production photoresist coating and developing machines, having completed full coverage for 28nm and above process nodes, with ongoing validation for below 28nm processes [14]. - The company has made significant progress in sales of new machines for high-end NTD negative photoresist and SOC coating [14]. Future Outlook - The company expects revenue for 2024 to be 2.163 billion yuan, with a growth rate of 26.0%, and net profit attributable to shareholders to reach 329 million yuan, reflecting a growth rate of 31.3% [14][15]. - The report anticipates a recovery in the advanced packaging sector in 2024, with the company benefiting from increased production capacity in the 2.5D advanced packaging market [13][14].