occurrences
The company released its 24-year semi-annual performance forecast. 24H1 is expected to achieve net profit of 2.01-221 million yuan, an increase of 110-130% over the previous year; 24H1 is expected to achieve net profit of 1.81 to 210 million yuan after deducting non-recurring profit and loss, an increase of 166 to 194% over the previous year.
In 24Q2, the company expects to achieve net profit of 119 to 139 million yuan in a single quarter, up 96-127% year-on-year and 46-69% month-on-month; it is expected to achieve net profit of 115 to 135 million yuan in a single quarter after deducting non-recurring profit and loss, an increase of 145 to 186% year-on-year, and a year-on-year increase of 75-104%.
CMP polishing materials revenue achieved month-on-month growth, and new businesses such as advanced packaging materials and photoresists progressed steadily
The company expects to achieve CMP polishing pad revenue of about 164 million yuan in a single quarter in 24Q2, an increase of 93% year on year and 22% month on month. Benefiting from the autonomy of mass production of the core upstream raw materials of the product and the dilution of fixed costs, the company's net profit increased year-on-year. In terms of CMP polishing liquid and cleaning liquid, as the company continues to promote it in the market, related products have entered the rapid production stage. The company expects to achieve revenue of 41 million yuan in a single quarter in 24Q2, up 179% year on year and 14% month on month.
At the same time, the company is actively promoting client-side verification of advanced semiconductor packaging materials and other new material businesses such as wafer photoresists, and progress is in line with expectations.
Benefiting from the increase in downstream utilization rate and company share, the company's display material sales are increasing, and the company's layout in the field of OLED display key materials is becoming more and more perfect. Benefiting from the impact of the downstream utilization rate of OLED display panels and the significant increase in the company's market share, the company expects display materials such as YPI/PSPI to achieve revenue of about 98 million yuan in a single quarter, an increase of 164% year-on-year and 40% month-on-month. The rapid release of display materials has also further strengthened the company's overall profitability.
In the future, as the company's client share increases and the number of new products released, related revenue is expected to increase further.
Investment advice
We adjusted the profit forecast. Previously, the company's net profit from 2024 to 2026 was 429/5.75/697 million yuan, respectively. Currently, the company's net profit from 2024 to 2026 is 4.77/6.16/726 million yuan, respectively, corresponding to PE 46.88/36.25/30.76x, maintaining a “buy” rating.
Risk warning
Downstream demand recovery fell short of expectations, new product launch progress fell short of expectations, and market competition intensified.