Incident: The company released its annual report for the year 23 and the quarterly report for '24, with revenue of 2,508 million yuan, YoY +52%; net profit to mother of 724 million, YoY +44%; net profit after deducting non-return to mother of 608 million, YoY +60%. 24Q1, revenue of $680 million, YoY +10%, QoQ +2%; net profit attributable to mother of $202 million, YoY +4%, QoQ +26%; net profit after deducting non-attributable net profit of $172 million, YoY +3%, QoQ +15%.
Equipment such as CMP and thinning have been updated and iterated, and the market share continues to increase. 1) CMP equipment: Revenue of 2,278 billion yuan in 23 years, +59.20% year-on-year. The first Universal H300 completed small-batch verification in multiple processes and is expected to be mass-produced in 24 years; the Universal-150Smart is shipped in small batches and a new model is under development, and is expected to be sent to customers for verification in 24 years. 2) Thinning equipment: The Versatile-GP300 all-in-one thinning and polishing machine has received batch orders from leading companies in many fields, and several units have been sent to clients; the 12-inch wafer thinning and film all-in-one machine has obtained a demo order for an IC sealing and testing leader; the dry-polish packaging and thinning machine is expected to be sent to the client for verification; in addition, core components such as spindles and porous suction cups have completed localized development, and some have reached mass production conditions.
The development and verification of various other types of equipment is also being accelerated. 1) Cutting equipment: The 12-inch wafer edge cutting device 24H1 has been sent to a storage faucet manufacturer for verification. 2) Cleaning equipment: The first HSC-F3400 was sent to a leading domestic silicon wafer company for verification; the cleaning machine for cleaning the front, back and edge of the 12-inch wafer was further tested by the company; the brush cleaning equipment for 4/6/8-inch compound semiconductors was sent to the client for verification; the cleaning equipment for 4/6/8/12 inch chip cartridges was delivered to the wafer re-production line for verification. 3) Liquid supply system:
SDS/CDS liquid supply system equipment has been purchased in batches, and the development of a new CDS product has been completed. 4) Film thickness measuring equipment: It has been sent to many customers for verification and small-batch shipment, and some machines have passed the inspection.
Jingsheng's recycling business and maintenance services have contributed new growth points. 1) The wafer can be reproduced up to 100,000 pieces/month, receiving batch orders from many large production lines and stable supply over a long period of time. 2) The performance of the 12/8/6 inch CMP multi-zone polishing head has been improved, and CMP equipment ownership is expected to boost the maintenance and technical service business volume of key consumables.
Profit forecast: The company's net profit for 24-26 is estimated to be 974, 12.64, and 1,559 million yuan, respectively, and the corresponding PE is 28.3, 21.8, and 17.7 times, respectively, maintaining the “increase in holdings” rating.
Risk warning: Product acceptance is slower than expected, subsequent orders fluctuate, downstream capital expenditure falls short of expectations, etc.