Tuojing Technology released its 2024 semi-annual performance report: in the first half of 2024, the company achieved operating income of 1.267 billion yuan, a year-on-year increase of 26.22%; achieved net profit attributable to shareholders of listed companies of 0.129 billion yuan, an increase of 3.64% year on year; realized net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss of 0.02 billion yuan, a year-on-year decrease of 69.38%.

Key points of investment

Steady revenue growth, sufficient on-hand orders throughout the year

Benefiting from the increase in demand for domestic semiconductor equipment from domestic downstream wafer manufacturers, H1 Company's new sales orders and shipment amounts both increased sharply year on year in 2024. The shipment amount was 3.249 billion yuan, an increase of 146.50% year on year. In the first half of the year, it continued to receive new orders from downstream customers, including repurchase orders for new process machines. Ongoing orders were sufficient, and the growth trend continued. Net profit to the mother increased by 3.64% year on year, lower than the year-on-year growth rate of operating income. The main reasons are: 1) The company continues to invest heavily in R&D, continuously expand new products and processes, including ultra-high depth-to-width ratio groove filling CVD equipment, PECVD Bianca process equipment and bonding registration accuracy measurement products, and continue to optimize and upgrade equipment platforms and reaction chambers, including new equipment platforms (PF-300T Plus and PF-300M) and new reaction chambers (pX and Supra-D), etc., while further expanding The company's product and process coverage enhanced the core competitiveness of products, and R&D expenses increased by 49.61% year on year; 2) In order to support rapid growth in business scale and quick response to customer needs, sales staff remuneration and other expenses increased by 39.24% year on year.

Continuously expand the PECVD product matrix, and customer verification continues to promote the company's continued deep development and industrialization of film equipment products and processes. In terms of PECVD equipment, the company continues to expand the application of general-purpose dielectric film material technology and advanced dielectric film material technology. The company independently developed and launched PECVDBianca process equipment. In the first half of the year, the company's first PECVD Bianca process equipment passed customer verification and achieved industrial application. The two new equipment platforms (PF-300T Plus and PF-300M) and the two new reaction chambers (Px and Supra-D) continue to receive customer orders and are shipped to multiple clients; the company's PECVD equipment for thin film processes such as SiO2, SiN, TEOS, and SiON in the manufacture of SiC devices in the field of new power devices, and PECVD equipment of the NF-300H model have been industrialized and have continued to be shipped to clients, gradually expanding the scale of mass production.

Promote the industrial application of hybrid bonding and obtain repeated orders from customers

The company is actively entering the cutting-edge technology field of high-end semiconductor equipment to develop bonding equipment products used in wafer-level 3D integration processes. In 2024, H1's wafer-to-wafer bonding product Dione 300 and chip-to-wafer hybrid pre-bonding surface pretreatment product Propus were both industrialized, and both products received repeated orders for mass production from customers. In addition, the company independently developed the Crux 300, a bonding register accuracy measurement product. This product is compatible with wafer-to-wafer and chip-to-wafer hybrid bonding measurement scenarios at the same time, and has received customer orders. In recent years, the company has successively launched advanced products to client verification, and is currently in the gradual deployment stage.

Profit forecasting

The company's revenue for 2024-2026 is estimated to be 3.973, 5.307, and 6.73 billion yuan, EPS is 2.81, 3.84, and 5.06 yuan, respectively. The PE corresponding to the current stock price is 44.4, 32.4, and 24.6 times, respectively. The company continues to be deeply involved in the development and industrialization of film equipment products and processes, while actively entering the cutting-edge technology field of high-end semiconductor equipment. Revenue and profit growth are expected to continue to grow, covering the first time, giving it a “buy” investment rating.

Risk warning

Macroeconomic risks, risk of product development falling short of expectations, risk of increased industry competition, risk of downstream demand falling short of expectations.