DING LONG(300054) Huaan Securities·2024-10-11 03:37Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has reported a significant increase in CMP polishing pad sales, with monthly sales surpassing 30,000 pieces for the first time [1] - The semiconductor materials business has shown strong growth, achieving revenue of approximately 1.089 billion yuan, a year-on-year increase of 88% [1] - The company has adjusted its profit forecasts for 2024-2026, now expecting net profits of 529 million yuan, 710 million yuan, and 1.039 billion yuan respectively [1][2] Financial Performance Summary - For the first three quarters of 2024, the company expects total revenue of approximately 2.410 billion yuan, with Q3 revenue around 892 million yuan, reflecting a 10% quarter-on-quarter growth [1] - The projected revenue for 2024 is 3.386 billion yuan, representing a 27% year-on-year increase [2] - The expected net profit for 2024 is 529 million yuan, with a significant year-on-year growth of 138.2% [2][4] Revenue Breakdown - CMP polishing pads generated sales of approximately 524 million yuan in Q3, a 95% year-on-year increase, with Q3 sales reaching 226 million yuan, up 39% quarter-on-quarter [1] - The semiconductor display materials business achieved sales of approximately 282 million yuan, a year-on-year increase of 162% [1] - The general consumables business is expected to generate approximately 1.321 billion yuan in revenue, showing slight growth [1] Profitability Metrics - The gross margin is projected to improve from 36.9% in 2023 to 51.6% by 2026 [2][4] - The return on equity (ROE) is expected to rise from 5.0% in 2023 to 15.7% in 2026 [2][4] - The earnings per share (EPS) is projected to increase from 0.24 yuan in 2023 to 1.11 yuan in 2026 [2][4]