Yoke Technology(SZ:002409) AVIC Securities·2024-06-14 03:30Investment Rating - The report assigns a "Buy" rating to the company, indicating an expected return exceeding 10% relative to the CSI 300 index over the next six months [12]. Core Views - The company demonstrates resilience through diversified operations, achieving steady growth in 2023 with a revenue of 4.738 billion yuan, up 11.2% year-on-year, and a net profit of 579 million yuan, up 10.5% year-on-year [1]. - The first quarter of 2024 shows significant performance improvement, with a revenue of 1.618 billion yuan, up 51.1% year-on-year, and a net profit of 246 million yuan, up 42.2% year-on-year [1]. - The company's growth is primarily driven by a doubling in revenue from LNG insulation composite materials, which reached 865 million yuan, up 114.5% year-on-year [1]. - The semiconductor precursor business benefits from a recovery in storage demand and expansion in High Bandwidth Memory (HBM) production, with the company achieving full coverage of major 12-inch clients [1][2]. - The company is positioned as a leader in domestic semiconductor materials, expected to benefit from the recovery in the electronics industry and ongoing localization efforts [8]. Summary by Sections Financial Performance - In 2023, the company reported a gross margin of 31.33% and a net margin of 12.67%, maintaining stability [1]. - R&D investment increased by 48.8% to 190 million yuan, with an R&D expense ratio of 4.02% [1]. - Forecasted revenues for 2024-2026 are 6.802 billion yuan, 8.588 billion yuan, and 10.671 billion yuan, representing year-on-year growth rates of 43.6%, 26.2%, and 24.3% respectively [8]. Business Segments - The precursor business generated 1.231 billion yuan in revenue in 2023, up 4.6% year-on-year, with domestic production capacity ramping up [1]. - The company has successfully developed new products in the photoresist line, enhancing its offerings in the semiconductor materials sector [2]. - LNG board orders are robust, with the company expanding its business model to include engineering installation services alongside key materials [7]. Market Outlook - The report anticipates a significant increase in HBM demand, projected to grow nearly 200% in 2024, with further doubling expected in 2025 [1]. - The company is well-positioned to capitalize on the growth in advanced packaging and semiconductor materials, with ongoing investments in production capacity [6].