Core views:

The 23-year performance has grown rapidly, and the development of new customers and new markets has achieved results. The company published its 23rd annual report. In '23, the company's revenue was 3.888 billion yuan, YoY +35.34%, mainly due to the continuous increase in demand for equipment in the domestic semiconductor industry, sales orders continued to grow; new customer development and new market development achieved certain results; new products were recognized by customers, and order volume grew steadily; net profit to mother was 911 million yuan, YoY +36.21%; gross profit margin of 51.99%, YoY+3.09pct; net profit margin of 23.42%, YOY+0.15pct; contract liabilities of 876 million yuan, QoQ+ $1.31 billion. In Q4 '23, the company's revenue was 1,139 million yuan, YoY +27.22%, QoQ -0.13%; net profit to mother of 238 million yuan, YoY +4.51%, QoQ +2.02%; gross profit margin 49.17%, YOY-3.98pct, QoQ-6.19pct; net profit margin 20.9%, YOY-4.54pct, QoQ+0.44pct.

The competitive advantage of technology is remarkable, and the platform-based layout of equipment is steadily being promoted. According to the company's 23 annual report, the platformization of the company's equipment products is progressing steadily. Currently, cleaning, semiconductor electroplating, vertical furnace tubes, Track, PECVD, stress-free polishing equipment/advanced packaging process equipment, and silicon material substrate manufacturing process equipment have been formed, and process coverage of processes and customers has increased rapidly. The company is an international leader in cleaning equipment technology; the company has successfully developed Qiandao copper interconnect electroplating equipment and electroplating process. The complete equipment has entered mass production verification, and has partially achieved mass production line production, establishing the company's leading position in the domestic 12-inch copper interconnection electroplating equipment market. It has also successfully developed advanced packaging electroplating equipment, three-dimensional TSV electroplating equipment, and high-speed electroplating equipment to fill domestic gaps and form batch sales; the company launched Qiandao gel-coated imaging equipment, using the company's vertical cross-cutting architecture protected by global patent applications, and has now entered the client verification stage.

Profit forecasting and investment advice. The company's net profit for 24-26 is estimated to be 12.32/16.23/2,044 billion yuan, maintaining the company's view that the reasonable value of 145.74 yuan/share remains unchanged, and maintaining the “buy” rating.

Risk warning. The industry cycle fluctuates; customer expansion falls short of expectations; market competition intensifies.