Core Viewpoint - Huahai Qingshi (688120) plans to expand its wafer regeneration project to enhance its "equipment + service" platform development strategy, aiming to capture the growing market share in the semiconductor equipment industry [1][2]. Group 1: Expansion Plans - The company intends to build a wafer regeneration expansion project in Kunshan, Jiangsu Province, with a total planned capacity of 400,000 pieces per month, and an initial construction capacity of 200,000 pieces per month [1]. - The initial investment for the project is expected to be no more than 500 million yuan, funded by the company's own and self-raised funds, with a construction period of no more than 18 months [1]. Group 2: Technology and Market Position - The wafer regeneration process involves multiple steps, including film removal, coarse grinding, fine grinding, cleaning, and inspection, aimed at ensuring a smooth surface without residual particles [1]. - The company has established strong relationships with domestic integrated circuit manufacturers, which overlap significantly with its existing equipment business customer base, laying a solid foundation for market expansion in wafer regeneration [2]. Group 3: Financial Performance - In 2024, the company achieved total operating revenue of 3.406 billion yuan, a year-on-year increase of 35.81%, and a net profit attributable to shareholders of 1.023 billion yuan, up 41.4% [2]. - Revenue from wafer regeneration and other businesses totaled 419 million yuan, reflecting an approximate 80% year-on-year growth, outpacing the growth of the main CMP/thinning equipment sales [2]. Group 4: Strategic Development - The company is committed to the "equipment + service" platform development strategy, focusing on semiconductor key equipment and technical services, and actively developing new technologies and products [3]. - The revenue from CMP equipment continues to grow rapidly, while thinning equipment, wet processing equipment, and wafer regeneration services are also contributing significantly to overall revenue [3].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase in stock price of over 20% compared to the benchmark index within the next six months [6][8]. Core Insights - The company is experiencing continuous improvement in profitability and steady progress in platform development, with a projected revenue of 3.406 billion yuan in 2024, representing a year-on-year growth of 35.82% [3][10]. - The company has successfully increased its market share and sales scale in various fields, including logic chips, storage chips, advanced packaging, and third-generation semiconductors, leading to a significant rise in net profit [3][4]. - The acquisition of a controlling stake in a subsidiary focused on ion implantation technology is expected to enhance the company's product offerings and support its "equipment + service" platform strategy [5][7]. Financial Performance Summary - The company is projected to achieve revenues of 4.732 billion yuan in 2025, 5.918 billion yuan in 2026, and 7.404 billion yuan in 2027, with corresponding net profits of 1.379 billion yuan, 1.751 billion yuan, and 2.256 billion yuan respectively [8][10]. - The expected growth rates for revenue are 38.91% in 2025, 25.07% in 2026, and 25.12% in 2027, while net profit growth rates are projected at 34.79%, 26.96%, and 28.79% for the same years [10][11]. - The company's earnings per share (EPS) are forecasted to be 5.83 yuan in 2025, 7.40 yuan in 2026, and 9.53 yuan in 2027, indicating a strong upward trend in profitability [10][11]. Market Opportunities - The report highlights the growing demand for advanced packaging and compound semiconductors, driven by the increasing need for high-performance computing chips, particularly in the context of artificial intelligence [4]. - The company is positioned to benefit from the rising demand for thinning and cutting equipment, as it has made significant technological advancements to compete with international suppliers [4][5].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase in stock price of over 20% compared to the benchmark index within the next six months [6][8]. Core Insights - The company is experiencing continuous improvement in profitability and is steadily advancing its platform development strategy. The market share and sales scale of CMP products are increasing, with a projected revenue of 3.406 billion yuan for 2024, representing a year-on-year growth of 35.82% [3][4]. - The company has successfully acquired the controlling stake in Chiplet Company, enhancing its core technology in ion implantation and advancing its "equipment + service" platform strategy [5][7]. - The company is well-positioned to capitalize on opportunities in advanced packaging and compound semiconductors, with significant advancements in thinning and cutting equipment [4][8]. Financial Projections - The company is expected to achieve revenues of 4.732 billion yuan in 2025, 5.918 billion yuan in 2026, and 7.404 billion yuan in 2027, with corresponding net profits of 1.379 billion yuan, 1.751 billion yuan, and 2.256 billion yuan respectively [10][11]. - The projected growth rates for revenue are 38.91% in 2025, 25.07% in 2026, and 25.12% in 2027 [10][11]. - The earnings per share (EPS) are forecasted to be 5.83 yuan in 2025, 7.40 yuan in 2026, and 9.53 yuan in 2027, with price-to-earnings (P/E) ratios of 27, 22, and 17 respectively [10][11].

Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][21]. Core Views - The company achieved record high operating performance in 2024, with revenue reaching 3.406 billion yuan, a year-on-year increase of 35.82%, and a net profit of 1.023 billion yuan, up 41.40% year-on-year [5][6]. - The company is actively advancing new product and business layouts, particularly in the AI-driven advanced packaging market, which is projected to grow significantly [5][6]. - The company has successfully increased its market share and sales scale in CMP products, enhancing its core competitiveness through increased R&D investment and production capacity [5][6]. Financial Performance - In 2024, the company reported total revenue of 34.06 billion yuan, with a year-on-year growth of 35.82%, and a net profit attributable to shareholders of 10.23 billion yuan, reflecting a year-on-year increase of 41.40% [5][6]. - For Q1 2025, the company achieved revenue of 9.12 billion yuan, a year-on-year increase of 34.14%, and a net profit of 2.33 billion yuan, up 15.47% year-on-year [5][6]. - The company’s earnings per share (EPS) are projected to be 5.70 yuan in 2025, 7.15 yuan in 2026, and 8.36 yuan in 2027 [6][7]. Market Position and Strategy - The company is focusing on the development of new products and technologies, achieving significant results in CMP equipment, thinning equipment, and other product lines [5][6]. - The company has completed the construction of new production bases to support its platform strategy, enhancing its production scale and competitiveness [5][6]. - The global advanced packaging market is expected to grow from 37.8 billion USD in 2023 to 69.5 billion USD by 2029, with a compound annual growth rate of 10.7%, presenting significant opportunities for the company [5][6].

Investment Rating - The investment rating for the company is "Buy-A" with a target price of 208.76 CNY per share, maintaining the rating [6][9]. Core Views - The company has demonstrated significant revenue and profit growth, with a 35.82% year-on-year increase in revenue to 3.406 billion CNY and a 41.4% increase in net profit to 1.023 billion CNY for the year 2024 [1][2]. - The company's CMP (Chemical Mechanical Planarization) equipment continues to lead the domestic market, with a 31.16% increase in sales revenue to 2.987 billion CNY in 2024 [3][4]. - The company is expanding its product lines and platform development, including advancements in cutting, polishing, and ion implantation equipment, which are currently undergoing client validation [4]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 3.406 billion CNY, a year-on-year increase of 35.82%, and a net profit of 1.023 billion CNY, up 41.4% [1][2]. - For Q1 2025, the company reported a revenue of 912 million CNY, a 34.14% increase year-on-year, and a net profit of 233 million CNY, up 15.47% [1]. Profitability Metrics - The company's gross margin for 2024 was 43.2%, a decrease of 2.81 percentage points year-on-year, while the net margin improved to 30.05%, an increase of 1.19 percentage points [2]. Product Development - The company has successfully launched the Universal-H300 CMP system and developed specialized CMP equipment for third-generation semiconductors, which is currently in client validation [3]. - The company has made significant progress in domestic production of key components for its thinning equipment, meeting mass production requirements [3]. Market Position and Growth - The company maintains a leading market share in CMP equipment, with a strong focus on innovation and customer expansion, particularly in advanced process equipment [3][4]. - The company is expected to achieve revenues of 4.667 billion CNY, 5.833 billion CNY, and 6.883 billion CNY for the years 2025, 2026, and 2027, respectively [9].