Investment Rating - The report assigns a "Buy" rating to the company, indicating a potential upside in the stock price [8][11]. Core Insights - The company is positioned to benefit from the expansion of advanced semiconductor processes in China, driven by government support and funding starting in the second half of 2025 [8][11]. - The company has a strong market share in the semiconductor etching equipment sector and is continuously expanding its product offerings, enhancing its competitiveness in high-end semiconductor equipment [8]. - The projected earnings for 2025-2027 show significant growth, with net profits expected to reach RMB 22 billion, RMB 26.8 billion, and RMB 33.8 billion, respectively, reflecting year-on-year growth rates of 36%, 21%, and 19% [11]. Summary by Sections Company Information - The company operates in the machinery equipment industry, with a current stock price of RMB 178.02 and a market capitalization of RMB 111.47 billion [2]. - The stock has seen a 12-month high of RMB 256.99 and a low of RMB 115.5, with a year-to-date price change of 28.7% [2]. Recent Ratings - The company has received multiple "Buy" ratings in recent reports, with the latest rating issued on April 24, 2025, at a closing price of RMB 187.35 [3]. Financial Performance - In Q1 2025, the company reported revenue of RMB 2.17 billion, a year-on-year increase of 35.4%, and a net profit of RMB 310 million, up 25.7% year-on-year [11]. - The gross margin for Q1 2025 was 41.5%, although it decreased by 3.4 percentage points compared to the previous year [11]. Earnings Forecast - The earnings per share (EPS) for 2025 is projected to be RMB 3.54, with a price-to-earnings (P/E) ratio of 50.3 [10]. - The company is expected to maintain a dividend payout, with projected dividends per share (DPS) increasing from RMB 0.3 in 2024 to RMB 0.65 by 2027 [10].