Core Viewpoint - The company, Northern Huachuang, is expected to see significant revenue and profit growth in Q1 2025, driven by an expanding technology coverage and increasing domestic demand for self-sufficient semiconductor equipment [1][3]. Financial Performance - For Q1 2025, the company anticipates revenue between 7.34 billion to 8.98 billion yuan, representing a year-on-year increase of 23.4% to 50.9% and a quarter-on-quarter decrease of 22.6% to 5.3% [1]. - The expected net profit attributable to shareholders is projected to be between 1.42 billion to 1.74 billion yuan, showing a year-on-year growth of 24.7% to 52.8% and a quarter-on-quarter increase of 22.6% to 50.2% [1]. - The company forecasts a total revenue of 29.84 billion yuan for 2024, which is a 35.1% increase year-on-year, with a net profit of 5.62 billion yuan, reflecting a 44.2% year-on-year growth [1]. Technology and Market Position - The company is enhancing its platform layout and expanding its technology coverage in semiconductor manufacturing and advanced packaging [2]. - Recent product launches include the first ion implantation equipment, Sirius MC 313, and a 12-inch electroplating device, Ausip T830, indicating a strategic entry into new markets [2]. Industry Context - The tightening of U.S. export controls has led to a growing demand for domestic semiconductor equipment in China [3]. - China’s reliance on U.S. semiconductor equipment is significant, with imports from the U.S. accounting for 14% of PVD, 28.3% of thermal treatment/oxidation diffusion, 78.8% of ion implantation, and 37.3% of optical inspection equipment in 2024 [3]. - The potential increase in tariffs on semiconductor equipment imports from the U.S. may drive up costs and encourage more domestic equipment procurement [3].

Investment Rating - The report maintains an "Accumulate" investment rating for the company [1][3]. Core Views - The company is expected to achieve a revenue of 73.4 to 89.8 billion yuan in Q1 2025, representing a year-on-year growth of 23.4% to 50.9% and a quarter-on-quarter decline of 22.6% to 5.3% [1][6]. - The net profit attributable to the parent company is projected to be between 14.2 to 17.4 billion yuan, showing a year-on-year increase of 24.7% to 52.8% [1][6]. - The company's platform advantages are becoming increasingly prominent as it expands its process coverage in the semiconductor equipment sector [6]. Financial Data and Valuation - The total revenue for 2022 was 14.688 billion yuan, with a projected growth of 52% [2][8]. - The net profit attributable to the parent company for 2022 was 2.353 billion yuan, with a year-on-year growth of 118% [2][8]. - The projected revenue for 2024, 2025, and 2026 is 29.838 billion yuan, 39.220 billion yuan, and 48.456 billion yuan respectively, with corresponding net profits of 5.622 billion yuan, 7.547 billion yuan, and 9.573 billion yuan [2][8]. Key Financial Ratios - The company’s return on equity (ROE) for 2022 was 12.8%, expected to rise to 23.1% by 2026 [9]. - The net profit margin is projected to increase from 16.0% in 2022 to 19.8% in 2026 [9]. - The price-to-earnings (PE) ratio is expected to decrease from 97.8 in 2022 to 24.0 by 2026, indicating improving valuation metrics [9].