Core Insights - The company reported a significant increase in revenue and net profit for 2024, with total revenue reaching 29.838 billion yuan, up 35.14% year-on-year, and net profit attributable to shareholders at 5.621 billion yuan, up 44.17% year-on-year [1] - In Q1 2025, the company also showed strong performance with revenue of 8.206 billion yuan, up 37.9% year-on-year, and net profit of 1.581 billion yuan, up 38.8% year-on-year [1] Industry Perspective - The global semiconductor equipment market is experiencing a recovery, with sales surpassing 117.14 billion USD, a year-on-year increase of 10%. China’s market is particularly strong, with a 35% increase in sales, reaching 49.55 billion USD, driven by capacity expansion and government support [1] - The ongoing escalation of US-China tariff issues is expected to accelerate the domestic production process in the semiconductor industry. The domestic equipment penetration rate is anticipated to rise quickly due to anti-dumping policies and cost advantages in mature processes, while advanced processes will gradually reveal replacement opportunities as technological breakthroughs are validated [1] Company Developments - The company achieved a comprehensive breakthrough in its semiconductor equipment business, with revenue exceeding 8 billion yuan in the etching equipment sector and over 10 billion yuan in the thin film deposition sector [2] - A strategic acquisition of 8.41% of Chip Source Micro by the company is expected to enhance its product offerings in coating and developing, high-end chemical cleaning, and advanced packaging, fostering product complementarity and collaborative development [2] Investment Outlook - Revenue projections for the company from 2025 to 2027 are estimated at 39.386 billion yuan, 49.233 billion yuan, and 59.079 billion yuan, with net profits of 7.623 billion yuan, 9.934 billion yuan, and 12.267 billion yuan respectively. A PE valuation method suggests a target price of 542.27 yuan per share, maintaining a "Buy-A" investment rating [3]

Investment Rating - The investment rating for the company is "Buy-A" with a target price of 115.85 CNY per share, maintaining the rating [5][9]. Core Views - The company achieved record high performance in Q4 2024, with revenue of 6.49 billion CNY, a year-on-year increase of 27.13%, and a net profit of 0.95 billion CNY, a year-on-year increase of 213.09% [1]. - The company has made significant breakthroughs in the semiconductor equipment sector, securing orders from leading domestic clients in both front-end and back-end equipment [2][3]. - The strategic investment from Northern Huachuang, which will become the largest shareholder with a 17.88% stake, is expected to enhance the company's competitiveness in the semiconductor industry [4]. Financial Performance - In 2024, the company reported total revenue of 1.754 billion CNY, a slight increase of 2.13% year-on-year, and a net profit of 203 million CNY, a decrease of 19.08% year-on-year [1][11]. - The projected revenues for 2025, 2026, and 2027 are 2.648 billion CNY, 3.429 billion CNY, and 4.183 billion CNY respectively, with net profits expected to be 339 million CNY, 493 million CNY, and 653 million CNY [9][11]. Market Position and Growth Potential - The company has established itself as a leader in the domestic semiconductor equipment market, particularly in photoresist coating and developing products, with strong order growth from both domestic and international clients [2][3]. - The introduction of new products, such as the KS-CM300/200 chemical cleaning machine, has broken foreign monopolies and is expected to drive further growth [3]. Valuation Metrics - The company is valued at a price-to-sales (PS) ratio of 8.8 for 2025, reflecting its leading position in the front-end equipment market and promising growth in back-end products [9][12].