Incidents:
The company released its 2023 annual report. In 2023, the company achieved operating income of 829 million yuan, a year-on-year increase of 27.07%, and achieved net profit of 179 million yuan, an increase of 31.28% over the previous year, and net profit after deducting non-return to mother of 158 million yuan, an increase of 35.70% over the previous year.
Revenue is expected to grow rapidly in 2023. In 2023, the company achieved operating profit of 197 million yuan, an increase of 37.97% over the previous year. The high increase in operating profit was mainly due to 1) the continuous growth of the company's sales revenue; 2) high-end upgrading of the product system; and 3) refined internal management. During the reporting period, the company continued to optimize product structure and performance and actively explore the global market. Revenue from PCB direct imaging equipment and pan-semiconductor direct writing lithography equipment both increased.
PCB direct writing devices bucked the trend in 2023, and the focus was on overseas markets in 2024. Under the strong pressure of the slowdown in demand throughout the industry this year, the company's PCB side still achieved a certain amount of growth due to the company's early deployment of major customer strategies and overseas strategies. The strategic order demand from major customers has brought some incremental support to the company; as one of the company's most important strategies in the past two years, the overseas strategy has grown rapidly and developed strongly. At the same time, benefiting from high-end trends in the PCB market, the company continuously improves the technical level in the field of PCB circuit and solder mask exposure, has a high technical level in terms of equipment core performance indicators, and comprehensively promotes the high-end upgrading of the company's product system. The rapid growth in product market penetration mainly depends on product stability, reliability, cost performance and local service advantages.
Expanding into the field of semiconductors, the release of IC carrier boards and advanced packaging equipment can be expected. In the field of pan-semiconductors, the company has deepened and expanded industrial applications in the fields of carrier boards, advanced packaging, new displays, power discrete devices, etc., carried out strategic cooperation with leading customers in various segments, and grew together with downstream, and accelerated its own R&D and marketing process. Product maturity in the semiconductor sector and the expansion of new fields have improved the company's overall development status this year, and future growth is clearly anticipated.
Advanced packaging is developing smoothly and technology is leading. Compared with domestic manufacturers, the company's equipment has advantages in terms of performance, cost and production capacity; mainstream packaging technology is mainly used in line widths of less than 10 microns. As lines are refined, correction and coping with warpage will be a key process.
Profit forecast: PCB overseas market and advanced packaging two-wheel drive company performance growth. We expect the company's revenue for 2024-2026 to be 11.8/16.5/1.98 billion yuan, and net profit to mother for 2024-2026 will be 3.0/ 4.3/ 550 million yuan, respectively, and the corresponding PE will be 30/ 21/ 16 times, respectively. The profit of 2024E was estimated at 40 times PE, corresponding to the target price of 89.71 yuan. It was covered for the first time, and a “buy” rating was given.
Risk warning: Downstream demand falls short of expectations, profit forecasts and valuation judgments fall short of expectations.