Incident review: The company released the 2024 semi-annual performance forecast. The net profit attributable to the parent company's owners is expected to be 86.5 million yuan to 92.5 million yuan in the semi-year 2024. Compared with the same period last year, it is expected to increase 33.1338 million yuan to 39.1338 million yuan, an increase of 62.09% to 73.33% over the previous year.
Performance in the first half of the year was high year-on-year, and the leading space for domestic mask versions is vast: the company is mainly engaged in the R&D, design, production and sales of mask plates, and is one of the earliest and largest mask plate manufacturers established in China. The company has planned a “double wing” strategy of “flat panel display mask version+semiconductor chip mask version” to promote mutual promotion and progress. In the first half of 2024, the company's mask version in the flat panel display industry and the mask version business in the semiconductor chip industry progressed “on both sides”. The scale of production and sales was further expanded, and the steady increase in revenue led to a corresponding increase in performance. In the field of flat panel displays, we believe that the company has a large room for growth in the medium to long term, mainly based on several judgments: 1. The company is promoting the development of the 6-generation ultra-high precision AMAMOLED/LTPS/LTPO mask version and high-specification semi-permeable membrane mask version (HTM) and high-specification phase shift mask version (PSM) technology; 2. Currently, the demand for display masking plates is relatively stable, the localization rate of the mask version market is relatively low, and the domestic market space is huge. The company has a good domestic customer base and influence.; 3. The company will use Hefei and Foshan as industrial bases to further expand the production capacity of high-precision mask plates, optimize the industrial layout, continuously improve and extend the business chain, promote new factory projects for flat panel display mask plates, further expand production capacity, and improve product accuracy and quality. In the semiconductor chip field: In terms of technology, the company has achieved mass production of 180nm process node semiconductor chip mask versions, as well as customer testing and certification and small-scale mass production of 150nm process node semiconductor chip mask versions, and is promoting mask plate development plans for 130nm-65nm PSM and OPC processes and mask plate process development plans required for 28nm semiconductor chips; in terms of production capacity, the main equipment for the company's high-end semiconductor mask production base construction project has been ordered. The overall equipment delivery period is shorter than expected, and is not restricted by overseas restrictive policies As a result, the Foshan production base project has now entered the plant construction stage, and it is expected that equipment will be gradually moved in the fourth quarter of 2025. Overall, on the one hand, the company is actively developing and upgrading technology and expanding production capacity. On the other hand, it is in the midst of a major trend of rising localization of display panel and semiconductor manufacturing. Its market share continues to increase, and there is plenty of room for development in the future.
Investment advice: Maintaining the previous forecast, we expect the company to achieve revenue of 1.159 billion yuan, 1.432 billion yuan, and 1.767 billion yuan respectively in 2024-2026, with year-on-year growth rates of 25.4%, 23.6%, and 23.4%, respectively. The estimated net profit of scale is 0.193 billion yuan, 0.251 billion yuan, and 0.336 billion yuan respectively, corresponding to PE of 25.4 times, 19.5 times, and 14.5 times, respectively. Considering that the company is in a large market space, the company continues to promote product upgrades, and the release of fixed real estate production capacity is expected to bring about a new round of performance growth in the future and maintain the buy-A proposal.
Risk warning: Downstream demand is sluggish, industry competition intensifies, product upgrades fall short of expectations, fixed growth falls short of expectations