Event: The company released its 2023 performance report. In 2023, the company achieved revenue of 22.079 billion yuan, a year-on-year increase of 50.32%; realized net profit attributable to mother of 3.899 billion yuan, an increase of 65.73% year on year; realized non-net profit deducted from mother of 3,581 billion yuan, an increase of 70.05% year on year.
The company released its 2024 Q1 performance forecast. In 24Q1, the company achieved revenue of 54.2-6.24 billion yuan, a year-on-year increase of 40.01%-61.19%; realized net profit of 1.04 to 1.2 billion yuan, an increase of 75.77%-102.81%; and realized deducted non-net profit of 9.9-1.14 billion yuan, an increase of 85.46%-113.56% year-on-year.
The 23-year performance continued to grow, with new orders exceeding 30 billion yuan: the company has always insisted on product innovation guided by customer needs. In 2023, the main business showed a good development trend, and market recognition continued to increase. Dozens of process equipment such as etching, film, cleaning and furnace tubes used in the high-end integrated circuit field achieved technological breakthroughs and mass production applications, and process coverage and market share were greatly increased; in 2023, the company signed more than 30 billion yuan of new orders, of which the integrated circuit sector accounted for more than 70%.
24Q1 revenue continued to grow at a high rate, and the net profit growth rate exceeded expectations: the company continued to focus on its main business, scrutinize customer needs, deepen technology research and development, and continuously improve its core competitiveness. The company's market share of process equipment such as etching, film deposition, cleaning, and furnace tubes in the integrated circuit field rose steadily, and revenue grew steadily year on year. 24Q1 achieved revenue of 54.2-6.24 billion yuan, an increase of 40.01%-61.19% year on year, in line with our expectations. As the scale of the company's revenue continued to expand, the scale effect gradually became apparent, and the cost ratio declined steadily, so net profit attributable to shareholders of listed companies maintained a rapid year-on-year increase of 1.04 to 12 billion yuan in 24Q1, an increase of 75.77%-102.81% over the previous year, exceeding our expectations.
Profit forecast, valuation and rating: Considering the acceleration of downstream fab construction, our subsidiary's net profit for 2023-2024 was 38.99 billion yuan and 5,546 billion yuan (19.31% and 23.71%), and the net profit for 2025 was 7.628 billion yuan. The current market value corresponding to 2024-2025 PE is 28/20 times, respectively. We are optimistic about domestic semiconductor equipment demand and maintain the company's “buy” rating.
Risk warning: Industry sentiment recovery falls short of expectations; industry competition intensifies