Incident: Huahai Qingke released its 2023 annual report and 2024 quarterly report. In 2023, the company achieved operating income of 2,508 billion yuan, an increase of 52.11%; net profit to mother of 724 million yuan, an increase of 44.29%; in the first quarter of 2024, revenue of 680 million yuan, up 10.40% year on year, and net profit to mother of 202 million yuan, up 4.27% year on year
Deeply involved in the field of CMP equipment, technical capabilities continue to improve: the company continues to develop CMP products that meet the requirements of more processes and more advanced processes, and has launched Universal H300 equipment. The equipment uses a new polishing system architecture design and optimizes the cleaning technology module to greatly improve technical performance and make the applicable process more flexible and rich. At present, the first device of this model has been sent to the client for verification. It has completed small-batch verification of multiple processes. It is progressing smoothly, and mass production is expected in 2024.
Focus on advanced packaging to develop the thinning and slicing equipment market: The production of high-performance chips through 3D chip stacking has become an important development direction, and the advanced packaging equipment market is expected to grow. The company developed the Versatile-GP300 all-in-one thinning and polishing machine, which is used in advanced packaging and backside thinning processes in front-end wafer manufacturing, and was successfully verified on the client side. The 12-inch wafer edge cutting machine, which integrates cutting, transmission, cleaning and measurement units, was sent to a storage faucet manufacturer for verification in the first half of 2024.
The diversification of the company's business is progressing steadily: Huahai Qingke is actively developing diversified businesses such as wet method and measurement, and has made outstanding progress. The HSC-F3400, the first 12-inch single-chip terminal cleaning machine, was sent to leading domestic silicon wafer companies for verification. The core technical indicators have met customer requirements. Measurement equipment for the thickness of metal films such as copper, aluminum, tungsten, cobalt, etc. has been sent to many customers for verification. The measurement accuracy is high, the results are reliable and accurate, and they have been shipped in small batches, and some machines have passed the inspection.
Investment advice: Based on the company's advantages in CMP and thinning equipment, we expect the company to achieve operating income of 34.85/46.69/5.713 billion yuan in 2024-2026, net profit to mother of 10.46/14.08/1,750 billion yuan, PE 24.66/18.32/14.74 times, maintaining an “increase” rating.
Risk warning: semiconductor market downturn cycle; overseas supply risk; domestic fab equipment procurement slows down; new product development progress falls short of expectations; industry competition intensifies.