1H24's net profit to mother increased 110% to 130% year over year. The company released the 2024 semi-annual performance forecast. 1H24 net profit to mother was 2.01-221 million yuan, up 110%-130% year on year, and net profit after deduction was 1.81 to 210 million yuan, up 166%-194% year on year. 1H24 non-recurring profit and loss is about 20 million yuan, mainly due to government subsidies. The non-recurring profit and loss for the same period last year was 27.73 million yuan. Affected by the downstream utilization rate of the domestic semiconductor and OLED display panel industry and the significant increase in the market share of the company's products, 1H24's optoelectronic semiconductor business achieved revenue of 640 million yuan, increasing its revenue share to 42% from 32% in 2023.
The general consumables business for printing and copying is developing steadily. 1H24's revenue was 800 million yuan, a slight increase over the previous year. The company enhances product gross profit margin and consolidates the company's competitiveness through various policies such as cost reduction and efficiency, and product structure optimization.
1H24 CMP polishing pad revenue increased 100% year over year, and the CMP polishing liquid and cleaning liquid business increased rapidly.
1H24's CMP polishing pad business achieved revenue of 300 million yuan, a year-on-year increase of 100.3%, 2Q24 CMP polishing pad business revenue of 164 million yuan (YoY +92.77%, QoQ +21.93%). CMP polishing pad revenue growth was rapid, mass production of the core upstream raw materials of the product was autonomous, fixed costs were diluted, and net profit increased year-on-year.
The 1H24 CMP polishing liquid and cleaning liquid business achieved revenue of 77 million yuan, an increase of 190.87% over the previous year, and the 2Q24CMP polishing liquid and cleaning liquid business revenue was 40.79 million yuan (YoY +179.13%, QoQ +13.56%).
Semiconductor display materials revenue grew rapidly year over year, and other new materials businesses continued to promote customer verification.
1H24's sales revenue of semiconductor display materials such as YPI and PSPI was 168 million yuan, up 234.56% year on year. 2Q24 sales revenue was 98.25 million yuan (YoY +163.69%, QoQ +39.93%). The rapid increase in display materials further strengthened the company's profitability. The company's semiconductor advanced packaging materials and other new materials business, such as wafer photoresists, continues to advance in client-side verification, and progress is in line with the company's expectations.
Investment advice: We maintain the company's profit forecast. We expect the company's 2024-2026 revenue to increase 22.8%/15.4%/13.5% year on year to 32.76/37.82/4.292 billion yuan, and net profit to mother will increase 99.7%/35.6%/22.2% year on year to 443/6.01/734 million yuan, corresponding to 2024-2026 PE 46.8/34.5/28.3 times, maintaining the “superior to the market” rating.
Risk warning: Downstream demand falls short of expectations; new business development falls short of expectations.