Core Viewpoint - The company, ChipSource Micro, reported a decline in revenue and net profit for the first three quarters of 2025, attributing the downturn to several factors including slow client acceptance and delays in equipment delivery [1][3]. Business Overview - ChipSource Micro specializes in the research, production, and sales of semiconductor equipment, with headquarters in Shenyang and subsidiaries in Japan, Shanghai, and Guangzhou [1]. - The company has established four main business segments: front-end coating and developing, front-end cleaning, advanced packaging, and core components, having delivered over 2,000 sets of equipment [1]. Product Layout - The main products include front-end coating and developing equipment, front-end physical and chemical cleaning equipment, and advanced packaging devices [3]. - The front-end coating and developing machines, along with front-end physical cleaning machines, have secured orders from leading domestic clients in logic and memory sectors [3]. - The front-end chemical cleaning machines have received formal and validation orders from several major clients, while advanced packaging equipment has been widely adopted by top-tier manufacturers such as TSMC and others [3]. Financial Performance - For the first three quarters, the company reported a revenue of 990 million yuan, a year-on-year decrease of 10%, and a net profit attributable to shareholders of -10.05 million yuan [3]. - The revenue decline is attributed to three main reasons: low maturity of front-end Track products, delayed acceptance of large orders from strategic clients, and the time lag between signing and revenue recognition for new products [3]. Cash Flow Analysis - The net cash flow from operating activities for the first three quarters was -230 million yuan, primarily due to increased procurement costs for materials and higher employee compensation from staff expansion [4]. - Despite the negative cash flow, the company indicated that the overall operating cash flow remains healthy, with contract liabilities growing nearly 80% compared to the end of the previous year, reflecting increased orders and customer prepayments [4]. Future Development Plans - Following the acquisition by Northern Huachuang in June 2025, the company aims to enhance management, resource allocation, and product planning [4]. - The focus will be on achieving rapid breakthroughs in front-end Track products and increasing the market penetration of new front-end chemical cleaning products while maintaining a leading position in advanced packaging [4]. - The company plans to optimize the design of front-end coating and developing equipment, enhance reliability, and research new high-capacity technologies, while also advancing the development of high-end packaging equipment [4].

芯源微11月24日召开2025年第三季度业绩说明会，公司针对2025年第三季度的经营成果及财务指标的具 体情况与投资者进行交流。 芯源微专业从事半导体专用设备的研发、生产和销售，公司总部位于沈阳市浑南区，并在日本、上海、 广州等地设有子公司。公司已形成前道涂胶显影、前道清洗、后道先进封装及化合物、核心零部件四大 业务板块，产品累计出厂超过2000台套，是国内半导体设备细分领域龙头。 芯源微在本次业绩说明会上介绍，公司产品包括前道涂胶显影设备、前道物理清洗设备、前道化学清洗 设备、后道先进封装设备和化合物等小尺寸设备。公司前道涂胶显影机、前道物理清洗机持续获得国内 领先逻辑、存储等客户订单；前道化学清洗机获得国内多家大客户订单及验证性订单；后道先进封装用 涂胶显影设备、单片式湿法设备已连续多年作为主流机型批量应用于台积电、盛合晶微、长电科技 （600584）、华天科技（002185）、通富微电（002156）、珠海天成等海内外一线大厂，持续获得海外 封装龙头客户批量重复性订单。 在谈及经营业绩情况时，芯源微表示，公司前三季度实现营业收入9.9亿元，同比下降10%，主要原因 一是前道Track产品成熟性还不高，客 ...

Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company is experiencing short-term pressure on performance but is expected to benefit from accelerated domestic substitution in the semiconductor equipment sector [1] - The company has seen a decline in revenue and net profit in the first three quarters of 2025, primarily due to order structure and delivery cycles [1] - The company is positioned as a leader in photoresist coating and cleaning equipment, with significant growth potential from new product lines [1] Financial Performance Summary - Total revenue for 2023 is projected at 1,717 million yuan, with a year-on-year growth of 23.98% [1] - Net profit attributable to shareholders is expected to be 250.63 million yuan in 2023, reflecting a year-on-year increase of 25.21% [1] - The company anticipates a revenue increase to 1,980 million yuan in 2025, with a growth rate of 12.89% [1] - The projected net profit for 2025 is 232.61 million yuan, showing a recovery with a year-on-year growth of 14.69% [1] Key Financial Metrics - The company's earnings per share (EPS) for 2023 is estimated at 1.24 yuan, with a projected decline to 1.01 yuan in 2024 before recovering to 1.15 yuan in 2025 [1] - The price-to-earnings (P/E) ratio is expected to be 104.01 for 2025, indicating a valuation adjustment as earnings recover [1] - The gross margin for the first three quarters of 2025 was reported at 34.5%, down 7.9 percentage points year-on-year [1]

Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company has shown significant improvement in performance, with a notable increase in revenue and a positive outlook on its coating and developing equipment business [7] - The company is positioned as a leader in the semiconductor equipment sector, particularly in coating and developing equipment, and is expected to benefit from the growth of its chemical cleaning machines [7] - The financial forecasts for the company indicate a steady increase in revenue and net profit over the next few years, with a projected net profit of 2.33 billion, 3.75 billion, and 5.92 billion for 2025, 2026, and 2027 respectively [7][8] Financial Summary - Total revenue is projected to grow from 1,717 million in 2023 to 3,525 million by 2027, reflecting a compound annual growth rate (CAGR) of approximately 39.04% [1][8] - The net profit is expected to recover from a decline in 2024 to 591.84 million by 2027, with a significant growth rate of 57.66% in 2027 [1][8] - The earnings per share (EPS) is forecasted to increase from 1.25 in 2023 to 2.94 in 2027, indicating strong profitability growth [1][8] - The company’s gross margin is expected to improve gradually, reaching 40.42% by 2027 [8]

Core Viewpoint - ChipSource Micro has become the only domestic company capable of providing mass-produced mid-to-high-end coating and developing equipment in China [1][2]. Group 1: Industry Context - The photolithography process is crucial in integrated circuit manufacturing, accounting for 50% of production time and 30% of costs. The domestic replacement rate for photolithography machines is less than 3%, while the coating and developing equipment, which is highly monopolized by Japanese companies, has a replacement rate of less than 10% [2][4]. - Coating and developing machines, along with photolithography machines and photoresists, are considered the three essential elements of the photolithography process [2]. Group 2: Company Development - ChipSource Micro was founded in 2002 when the domestic semiconductor market was undeveloped, lacking products, supply chains, and customers. The company has grown from 4-inch and 6-inch wafers to 8-inch and 12-inch, expanding from LED to advanced packaging and front-end fields [2]. - The company successfully went public on the Shanghai Stock Exchange's Sci-Tech Innovation Board in 2019, becoming the first stock from Liaoning Province on this board, and has since become a leader in the domestic coating and developing equipment sector [2]. Group 3: Market Position and Growth Potential - The low domestic replacement rate indicates significant growth potential. ChipSource Micro's front-end equipment covers all process nodes above 28nm, accounting for over 90% of China's mature semiconductor processes. The company has achieved international advanced levels in front-end physical cleaning equipment, becoming the market leader domestically [4]. - In the advanced packaging sector, ChipSource Micro has over 50% market share as a key supplier of mass production equipment, while also expanding into emerging fields like 2.5D and 3D packaging [4]. Group 4: R&D and Innovation - ChipSource Micro has maintained R&D expenses at over 10% of its revenue for several years, with R&D investment reaching 297 million yuan in 2024, a nearly 50% increase year-on-year [4]. - The company emphasizes the complexity of coating and developing equipment, which consists of over 150 units and requires high precision and reliability to avoid affecting the performance of photolithography machines [5].