Event: The company released the 2024 mid-year report forecast. In the first half of 2024, the company expects to achieve operating income of 0.435-0.451 billion yuan, a year-on-year increase of 36.50%-41.50%; net profit to mother is 0.099-0.103 billion yuan, an increase of 36.06%-41.06% year-on-year.

Rapid growth in performance, PCB and pan-semiconductor equipment go hand in hand

(1) High performance growth in Q2: On a quarterly basis, Q2 of 2024 is expected to achieve operating income of 0.237-0.253 billion yuan, an increase of 46.43%-56.28% year on year; single Q2 is expected to achieve net profit of 0.059-0.063 billion yuan, an increase of 50.95%-60.23% year on year, and the performance continues its high growth trend.

(2) PCB direct writing lithography: Benefiting from product upgrades+exports. ① Product upgrade: Driven by demand such as computing power, etc., the demand for high-end PCBs such as multilayer boards, HDI boards, flexible boards, and IC carrier boards is improving. The company grasps the trend of industrial upgrading, promotes product upgrades and enhances the competitiveness of the equipment market by strengthening R&D and production expansion. At the same time, the company is simultaneously increasing the expansion of NEX series direct writing lithography equipment in the high-end solder mask market; ② Exports: The company has deployed a global overseas strategy ahead of schedule to increase the market layout in Southeast Asia, and has now completed the registration of the Thai subsidiary. At the same time, the company actively builds overseas sales and operation and maintenance teams to give full play to its brand, technology development and marketing advantages, and enhance the service capabilities of overseas customers.

(3) Pan-semiconductor: multi-track layout to further expand the application of direct writing lithography technology. The company continues to expand multiple tracks, enrich the product matrix, and continue to develop advanced packaging equipment, carrier board equipment, and display equipment. At the same time, as a company driven by technological innovation, the company continues to promote cutting-edge technology research and development, seize multiple industry opportunities, and continuously launch new products, including bonding, alignment, and laser drilling equipment, which has stable product and market support for the future growth of the pan-semiconductor business.

Direct writing on the lithography technology platform, optimistic about the development of new businesses such as advanced packaging equipment. The company has accumulated a deep accumulation of direct writing lithography technology. It is a leading segment for domestic direct writing lithography equipment. As domestic demand for high-end PCBs grows and demand for localization rates increases, the company accelerates its continuous layout in markets such as carrier boards, advanced packaging, new displays, mask plate making, power discrete devices, photovoltaic copper plating, etc., further opening up room for growth.

Profit forecast: Based on the accumulation of underlying direct writing lithography technology, the company is deeply involved in the PCB direct writing lithography market, while expanding the direction of emerging industries such as pan-semiconductors, which is expected to open up room for long-term growth for the company. We keep our profit forecast unchanged. We expect the company's revenue for 2024-2026 to be 1.112, 1.523, and 2.097 billion yuan, respectively, and net profit to mother of 0.257, 0.346, and 0.465 billion yuan, respectively. The corresponding PE is 29.3, 21.8, and 16.2 times, respectively, maintaining the “gain” rating.

Risk warning: the risk of increased competition in the industry; the risk that the advanced packaging industry will not progress as expected; the risk that the company's technological progress will fall short of expectations; the risk that the information used in the research report will not be updated in a timely manner, etc.