Profitability has grown rapidly, and the introduction and upsizing of various products in the advanced process field has progressed smoothly. Anji Technology 24H1 achieved revenue of 0.797 billion yuan, up 38.68% year on year; net profit after deduction of 0.235 billion yuan to mother, up 46.07% year on year; gross profit margin of 57.72%, up 2.63 pct year on year. The company actively promotes the acquisition of new orders for different products, continues to expand market coverage, and is well recognized by customers. In the field of advanced manufacturing processes, the company continues to make efforts to closely follow the customer's loading pace, and the introduction and loading of various products is carried out smoothly; at the same time, corresponding polishing liquid terminal products equipped with independently controlled silicon dioxide and cerium dioxide grinding particles continue to advance and receive new orders from clients, further expanding sales.

Multiple categories and multiple customers form batch sales of polishing liquid. ①. Copper and copper barrier polishing liquid products continue to increase in advanced manufacturing processes. Various products have been mass-produced and sold as preferred suppliers in multiple new clients, and copper and copper barrier layer polishing solutions using domestic grinding particles have been mass-produced and sold; ②, various tungsten polishing solutions have been verified in advanced processes for storage/logic chips to achieve mass production; ③, domestic cerium oxide abrasive products using self-developed assets were first used in oxide polishing to achieve mass production and sales on the client; ④, the new silicon polishing liquid was successfully launched on the client; ⑤, for 3D integration; TSV polishing solution, hybrid bond polish Liquid and polymer polishing fluids progressed smoothly and were sold to many clients.

Fast dosage of cleaning liquid products for advanced processes. In the field of functional wet electronic chemicals, the company has now covered various product lines such as post-etching cleaning liquid, photoresist peeling liquid, post-polishing cleaning liquid and etching liquid, which are widely used in logic circuits, 3D NAND, DRAM, CIS and other specialty processes and heterogeneous packaging. In terms of post-etching cleaning liquid, advanced process post-etching cleaning liquid has been successfully developed and industrialized, and dosage continues; in terms of post-polishing cleaning liquid, advanced process alkaline post-polishing cleaning liquid progresses smoothly and is rapidly dosed.

The development and verification of electroplating solutions and additive products is carried out according to the plan. In the field of electroplating solutions and additives, the company's localized supply of electroplating solutions is progressing smoothly and continues to increase in volume based on the completed electroplating solution and additive product series platform and one-stop delivery capacity; the development and verification of integrated circuit Damascus electroplating, silicon through hole electroplating, and advanced packaging tin/silver electroplating is progressing according to plan.

Profit forecasting and valuation recommendations. The company's 2024E-2026E revenue is expected to be 1.68 billion yuan, 2.146 billion yuan, and 2,627 billion yuan, up 35.71%, 27.72%, 22.44% year on year; net profit to mother 0.504 billion yuan, 0.644 billion yuan and 781 million yuan, up 25.09%, 27.74%, and 21.43% year over year. Combined with comparable company valuation levels, Anji Technology PE (2024E) was given 30x-35x, corresponding to a reasonable market value range of 15.113 billion yuan - 17.632 billion yuan, and a reasonable value range of 116.96 yuan/share - 136.46 yuan/share, maintaining a “superior to market” rating.

Risk warning: The worsening market competition pattern has led to a decline in gross margins of some products, the risk of low capacity utilization in downstream fabrics/packaging and testing plants, falling short of expectations in sales of new products using advanced processes, and slow development and verification of electroplating solutions and additive products.