Core Viewpoint - Huahai Qingsi plans to expand its wafer regeneration capacity by constructing a new project in Kunshan, Jiangsu, with a total planned capacity of 400,000 pieces per month, aiming to seize the opportunity of accelerated expansion in wafer factories [2] Group 1: Investment and Expansion Plans - The company intends to invest no more than 500 million yuan in the first phase of the expansion, which will have a capacity of 200,000 pieces per month [2] - The funding for the project will come from the company's own and self-raised funds, with a construction period expected to be no more than 18 months [2] Group 2: Financial Performance - For 2024, the company anticipates a revenue growth of 35.82% year-on-year, reaching 3.406 billion yuan, and a net profit growth of 41.4%, amounting to 1.023 billion yuan [2] - The company's net profit excluding non-recurring items is expected to grow by 40.79% to 856 million yuan [2] Group 3: Industry Context and Demand - The integrated circuit industry is a strategic sector for national economic and social development, supported by a series of government policies aimed at enhancing innovation capabilities and international competitiveness [2] - The demand for wafer regeneration is increasing due to the accelerated expansion of domestic 12-inch wafer factories, which require higher processing standards for new production lines [3] Group 4: Technological Advantages - The company has established itself as a professional foundry for wafer regeneration, leveraging its proprietary chemical mechanical polishing (CMP) and cleaning equipment to meet downstream customer needs [3] - The wafer regeneration process involves multiple steps, including film removal, coarse polishing, fine polishing, cleaning, and inspection, with CMP and cleaning technologies being core to this process [3][4] Group 5: Customer Relationships and Market Synergy - The company's customer base for wafer regeneration primarily consists of integrated circuit manufacturers, which overlaps significantly with its existing equipment business [4] - Strong cooperation with domestic integrated circuit manufacturers and recognition of the company's equipment products provide a solid foundation for expanding the wafer regeneration business [4]

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].