Event: The company released the 2023 performance report and the performance forecast for the first quarter of 2024. In 2023, the company achieved revenue of 22.079 billion yuan, a year-on-year increase of 50.32%, and achieved net profit of 3,899 billion yuan to mother, an increase of 65.73% over the previous year. The company expects to achieve revenue of 5.42 billion yuan to 6.240 billion yuan in the first quarter of 2024, an increase of 40.01% to 61.19% over the previous year, and is expected to achieve net profit of 1,040 billion yuan to 1200 billion yuan in 24Q1, an increase of 75.77% to 12.81% over the previous year.
Comment:
The company's main business developed in 2023, and the number of new orders increased dramatically. The company achieved revenue of 22.079 billion yuan in 2023, a year-on-year increase of 50.32%, and achieved net profit of 3,899 billion yuan, an increase of 65.73% over the previous year. It is within the previous performance forecast range, and the annual performance reached a new high. Looking at the single quarter, the company achieved revenue of 7.482 billion yuan in the fourth quarter of 2023, up 60.01% year on year, up 64.26% month on month, and achieved net profit of 1,015 billion yuan in a single quarter, up 52.17% year on year and 6.45% month on month. During the reporting period, the company's main business developed well. The market recognition of dozens of core process equipment used in the field of integrated circuits, such as etching, film deposition, cleaning, and furnace tubes, continued to increase. Process coverage and market share increased significantly, and product sales increased significantly over the same period last year. In terms of new orders, the company signed more than 30 billion yuan of new orders in 2023, of which the integrated circuit sector accounts for more than 70%.
The company's Q1 revenue and net profit to mother all reached record highs for the same period. Based on the lower limit of the company's performance forecast range, the company's 2024 Q1 revenue and net profit to mother were 5.420 billion yuan and 1,040 billion yuan respectively, all of which reached record highs for the same period. During the reporting period, 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 used in the field of integrated circuits has been rising steadily, and revenue has increased steadily over the same period last year. As the scale of the company's revenue continues to expand, the scale effect gradually became apparent, and the cost ratio declined steadily, so that net profit attributable to shareholders of listed companies maintained year-on-year growth.
Investment advice: As a leading enterprise in the field of semiconductor equipment in China, the company has a comprehensive layout in the semiconductor equipment category. The business covers various fields such as integrated circuits, panels, photovoltaics, lithium batteries, etc., and is expected to benefit from the reversal of the semiconductor industry's boom and the trend of domestic replacement of semiconductor equipment. The company's earnings per share for 2024-2025 are estimated to be 10.3 yuan and 14.3 yuan, respectively, and the corresponding valuations are 28 times and 20 times, respectively.
Risk warning: the risk that downstream fab production expansion falls short of expectations, and the risk that domestic replacement of semiconductor equipment falls short of expectations.