Incident description
The company released its 2025Q1 quarterly report, achieving operating income of 2.173 billion yuan, a year-on-year increase of 35.4%, a net profit of 0.313 billion yuan, a year-on-year increase of 25.67%, and net profit deducted from non-return to mother of 0.298 billion yuan, an increase of 13.44% year-on-year.
Incident Reviews
Revenue grew rapidly, and inventory and contract liabilities increased dramatically. 2025Q1 achieved rapid revenue growth. In terms of net profit, on the basis of rapid revenue growth, 1) R&D expenses included in the report increased by about 116.80% year on year; 2) the current profit from equity investments measured at fair value held by the company was about 0.004 billion yuan, an increase of about 0.045 billion yuan compared with a loss of 0.041 billion yuan in the same period last year; 3) the company's government subsidies included other income increased by about 0.043 billion yuan compared to the same period last year, which went back to the mother when combined The net profit growth rate was slightly lower than the revenue growth rate. At the end of 2025Q1, the company's inventory was 7.448 billion yuan and contract debt was 3.067 billion yuan, both of which were significant increases over the same period last year, confirming the high growth in the company's orders.
R&D investment continues to increase, and platformization continues to advance. According to market and customer needs, the company significantly increased its R&D investment. The 2025Q1 R&D investment was about 0.687 billion yuan, an increase of about 90.53% over the previous year, and R&D investment accounted for about 31.60% of the company's revenue. Currently, the company's research projects cover six categories and more than 20 new devices, and the R&D cycle has been shortened significantly. The company is expected to launch new products on a larger scale in the next few years. The company added significant increases in delivery volume for high-end products with key etching processes in advanced logic and memory device manufacturing. The key etching process for advanced logic devices and the ultra-high depth-width ratio etching process for advanced memory devices have achieved mass production; the six types of thin film devices developed for advanced memory devices and logic devices have successfully entered the market, and the performance has reached the leading international level, and simultaneously promoted the development of various metal film gas phase devices and next-generation plasma source PECVD devices to increase the coverage of film equipment; EPI equipment has successfully entered the client mass production verification stage and has completed many advanced logic companies Customer process verification for devices and MTM devices (including MEMS and sensors, CIS, power, and RF devices beyond Moore devices), and the results have been highly recognized by customers. In the field of pan-semiconductor equipment, the company is developing more compound semiconductor epitaxial devices, which are being shipped to clients one after another for production verification.
Through high-intensity R&D investment, the company's platform-based expansion continues to be strengthened.
Actively expand production capacity to support future development. The company's 0.14 million square meter production and R&D base in Nanchang and the 0.18 million square meter production and R&D base in Lingang, Shanghai have been put into use; the 0.1 million square meter headquarters building and R&D center on the shores of Dishui Lake in Lingang, Shanghai is also being successfully built; in addition, the company will build new production and R&D bases in Zengcheng District of Guangzhou and the Chengdu High-tech Zone to ensure production and rapid growth in production capacity in the next ten years.
The company is expected to achieve revenue of 11.9 and 15.2 billion yuan in 2025-2026, maintaining a “buy” rating.
Risk Alerts
1. The risk of further intensification of restrictive policies;
2. The risk that the boom in semiconductor manufacturing will fall short of expectations;
3. The risk that the company's new process and product verification progress will not meet expectations.
