KINGSEMI(688037) 海通证券·2024-09-22 01:39Investment Rating - The report assigns an "Outperform" rating for the company, with a first-time coverage [1][4]. Core Insights - The company is focusing on the development of a new generation of ultra-high-capacity coating and developing machines, with significant R&D investments and multiple new products being launched [3][4]. - The quarterly revenue shows an overall growth trend, with revenue increasing from 10.31 million yuan in Q1 2019 to 510 million yuan in Q4 2023 [3][23]. - The company has made substantial progress in R&D for its new generation of ultra-high-capacity coating and developing machines, which are critical in the integrated circuit manufacturing process [3][10]. Summary by Sections Company Overview - The company, established in 2002, specializes in the R&D, production, and sales of semiconductor equipment, covering four main business segments: front-end coating and developing equipment, front-end cleaning equipment, back-end advanced packaging equipment, and small-sized equipment [8][9]. Revenue Growth and Profitability - The company's revenue is projected to grow from 2.06 billion yuan in 2024E to 3.66 billion yuan in 2026E, with year-on-year growth rates of 19.97%, 32.02%, and 34.62% respectively [4][30]. - The net profit attributable to the parent company is expected to increase from 329 million yuan in 2024E to 605 million yuan in 2026E, with growth rates of 31.37%, 35.57%, and 35.56% [4][30]. R&D and Product Development - The company has significantly increased its R&D expenditure, from an average of over 20 million yuan in 2021 to 71.58 million yuan in Q2 2024 [3][23]. - New products include a front-end chemical cleaning machine launched in March 2024, and various machines targeting HBM and Chiplet technologies, which have already received orders from several clients [3][14][15]. Financial Forecast and Valuation - The report forecasts the company's revenue from coating and developing equipment to be 1.26 billion yuan in 2024E, with a year-on-year growth of 18.40% [30][33]. - The estimated price-to-earnings (PE) ratio for 2024E is set between 35x and 40x, leading to a reasonable market capitalization range of 11.52 billion to 13.17 billion yuan [4][34].