Core Viewpoint - The company is focusing on the verification progress of its ArF immersion high-capacity coating and developing machine, actively promoting its introduction and validation across different clients [1] Investment Highlights - The company's EPS forecast for 2025-2027 has been updated to 1.35, 2.14, and 3.36 yuan, reflecting growth rates of 34.08%, 58.60%, and 56.93% respectively. The 2025E and 2026E forecasts have been slightly downgraded, while 2027E is a new addition. Given the low domestic localization rate of front-end coating and developing equipment, achieving breakthroughs will create significant competitive barriers, leading to a projected PE valuation of 80 times for 2025, corresponding to a target price of 108.00 yuan [2] Operating Performance Pressure - The company anticipates a revenue of 1.753 billion yuan in 2024, a year-on-year increase of 2.13%, with a net profit of 73.31 million yuan, down 60.83% year-on-year. The decline in net profit is primarily due to increased R&D investment, with R&D expenses expected to reach 297 million yuan in 2024, a 49.93% increase. The company is currently in a critical transition period for upgrading coating and developing equipment and validating new products, resulting in significant performance pressure [3] Product Development Progress - The main products are advancing smoothly at client sites. The high-end offline machines, including SOC, SOD, and NTD, have achieved rapid breakthroughs, and I-Line and KrF machines are showing good production data at multiple client sites. The introduction and validation of the ArF immersion high-capacity coating and developing machine are actively being promoted across different clients [3] - New products are steadily progressing and are expected to contribute to new growth points for the company. The front-end chemical cleaning machine launched in March 2024 has passed client process validation and received orders from several major domestic clients. The temporary bonding and debonding machines have successfully passed validation from multiple clients and are entering a gradual ramp-up phase, with nearly 20 orders in hand. The new Frame cleaning equipment for 2.5D/3D advanced packaging has also passed client validation and is entering small-batch sales [4]

Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company reported significant performance improvement in Q4 2024, with revenue growth driven by new products such as chemical cleaning and advanced packaging [3] - The company faces profit pressure due to increased R&D expenses, with a notable decline in net profit for the year [4] - The upcoming control change with Beifang Huachuang is expected to enhance the company's business development and accelerate domestic substitution of equipment [5] Revenue Performance - In 2024, the company achieved revenue of 1.754 billion yuan, a year-on-year increase of 2.1%. Q4 revenue was 649 million yuan, up 27.13% year-on-year and 57.91% quarter-on-quarter [3] - The revenue breakdown shows that coating and developing equipment generated 1.05 billion yuan, down 1.52% year-on-year, while single-wafer wet processing equipment revenue was 640 million yuan, up 7.43% year-on-year [3] Profitability Analysis - The company reported a net profit of 203 million yuan for 2024, a decrease of 19% year-on-year, with a significant improvement in Q4 net profit [4] - The overall gross margin for 2024 was 37.7%, a slight decline of 0.9 percentage points year-on-year, with R&D expenses rising to 297 million yuan, an increase of 49.93% [4] Future Projections - Revenue forecasts for 2025 and 2026 have been adjusted to 2.096 billion yuan and 2.693 billion yuan, representing year-on-year growth of 19.5% and 28.5% respectively [7] - The projected net profit for 2025 is 264 million yuan, with an expected increase of 30% year-on-year [7] Market Position and Product Development - The company has secured orders from leading domestic clients for its coating and developing equipment, indicating strong market demand [5] - New products in advanced packaging, such as temporary bonding and debonding machines, are entering the volume production stage, with nearly 20 units on order [6]