Core Insights - The report from Zhongyou Securities indicates that Northern Huachuang achieved a revenue of 16.142 billion yuan in H1 2025, representing a year-on-year increase of 29.51% [1] - Revenue from electronic process equipment reached 15.258 billion yuan, with a year-on-year growth of 33.89% [1] Revenue Breakdown - In the integrated circuit equipment sector, multiple high-end equipment have achieved client mass production, enhancing process coverage and market share [1] - Revenue from etching, film deposition, thermal treatment, and wet processing equipment exceeded 5 billion, 6.5 billion, 1 billion, and 500 million yuan respectively [1] Strategic Developments - The company is advancing its ion implantation and electroplating ECP equipment, strengthening its platform-based layout [1] - The acquisition of Chip Source Micro has further improved the product line in the semiconductor equipment sector, particularly in photolithography supporting equipment, creating strong synergies with existing semiconductor equipment business [1] Market Position - As a leading platform manufacturer of semiconductor equipment in China, the company covers multiple core process links including etching, film deposition, thermal treatment, cleaning, coating, and developing, with a comprehensive process coverage [1] - The domestic market share continues to increase, and the company is expected to benefit from downstream capacity expansion and the domestic substitution process [1]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company is expected to achieve revenue of 29.84 billion yuan in 2024, representing a year-on-year growth of 35.14%, and a net profit attributable to shareholders of 5.62 billion yuan, up 44.17% year-on-year [2][9] - The company is accelerating its platform layout, with significant breakthroughs in key technologies for new products, leading to a steady increase in market share for mature products [2][3] - The company has announced its entry into the ion implantation equipment market and has launched several new products, enhancing its competitive position in the semiconductor equipment sector [3][4] Financial Performance - The company is projected to achieve revenues of 38.79 billion yuan, 48.71 billion yuan, and 58.74 billion yuan in 2025, 2026, and 2027 respectively, with corresponding net profits of 7.38 billion yuan, 9.72 billion yuan, and 12.15 billion yuan [7][9] - The company's earnings per share (EPS) is expected to grow from 10.52 yuan in 2024 to 22.75 yuan in 2027, reflecting strong profitability [9][12] - The price-to-earnings (P/E) ratio is projected to decrease from 41.50 in 2024 to 19.19 in 2027, indicating an attractive valuation over the forecast period [9][12] Market Position - The company has strengthened its market position by acquiring a 17.90% stake in Chip Source Micro, which will enhance its collaborative capabilities in semiconductor equipment [4][6] - The company has successfully launched high-end equipment in the integrated circuit equipment sector, with revenues from etching, film deposition, thermal treatment, and wet processing equipment expected to exceed 80 billion yuan, 100 billion yuan, 20 billion yuan, and 10 billion yuan respectively in 2024 [2][3]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company is expected to achieve revenue of 29.84 billion yuan in 2024, representing a year-on-year growth of 35.14%, and a net profit attributable to shareholders of 5.62 billion yuan, up 44.17% year-on-year [2][9] - The company is accelerating its platform layout, with significant breakthroughs in key technologies for new products, leading to a steady increase in market share for mature products [2][3] - The company plans to enhance its competitive edge through the acquisition of a 17.90% stake in Chip Source Micro, aiming to leverage synergies in semiconductor equipment [4][6] Financial Performance - The company is projected to achieve revenues of 38.79 billion yuan, 48.71 billion yuan, and 58.74 billion yuan in 2025, 2026, and 2027 respectively, with corresponding net profits of 7.38 billion yuan, 9.72 billion yuan, and 12.15 billion yuan [7][9] - The earnings per share (EPS) are expected to grow from 10.52 yuan in 2024 to 22.75 yuan in 2027, reflecting a strong growth trajectory [9][12] - The price-to-earnings (P/E) ratio is projected to decrease from 41.50 in 2024 to 19.19 in 2027, indicating improving valuation metrics over time [9][12] Market Position - The company has successfully launched several high-end semiconductor equipment, including the dual Damascus CCP etching machine and HDPCVD equipment, which have achieved client mass production [2][3] - The company’s market share is expected to continue expanding due to its strong product, technology, and service advantages [2][3]