Event: the company released its report for the third quarter of 2022, the main income was 1.925 billion yuan, up 50.13% from the same period last year; the net profit from its mother was 163 million yuan, down 13.55% from the same period last year; and the non-net profit was 186 million yuan, up 130.54% from the same period last year.

Q3 performance greatly increased compared with the same period last year, with full orders on hand: the company's Q3 revenue in 2022 was 806 million yuan, up 122.51% from the same period last year; the net profit was 81.3147 million yuan, up 115.6% from the same period last year; and deducting 88.3811 million yuan from non-net profit, which increased 133.25% year-on-year. Q3 revenue and net profit increased significantly compared with the same period last year. From the perspective of orders, in the first three quarters of 2022, the company's total new orders totaled 3.621 billion yuan, a substantial increase over the same period last year. According to the company announcement, the company expects to deduct non-return net profit of about 3 to 330 million yuan in 2022, with an optimistic performance outlook for 22 years compared with the same period last year.

With the rapid development of wet equipment, semiconductor parts have opened up new space: at present, the main wet equipment manufacturers in the market are mainly in Japan, Europe and the United States, while the market share of domestic manufacturers is increasing year by year. According to the announcement, the company has been able to provide all the wet process equipment of 28nm nodes, which has covered domestic mainstream wafer manufacturing enterprises. In the field of advanced process, the company has successively delivered four sets of equipment less than 14nm this year, and the research and development of other process machines under 14nm are also being carried out in a further orderly manner. In addition, the company also raises funds through convertible bonds for monolithic wet process modules and core parts research and development projects. The parts developed by the company are mainly related to the manufacture of cavity components including dry and wet equipment, which is expected to open up new space for the company.

Investment suggestion: we estimate that the company's income from 2022 to 2024 will be 3.054 billion yuan, 4.101 billion yuan and 5.138 billion yuan respectively, the net profit will be 373 million yuan, 506 million yuan and 637 million yuan respectively, and the EPS will be 1.17,1.58,1.99 yuan respectively.

Investment rating.

Risk tips: the global semiconductor boom is not as expected; the capital expenditure of the fab is not as expected; the technology research and development of domestic equipment companies is not as expected; the progress of localization is not as expected.