HHCK(688535) 群益证券·2025-02-24 06:49Investment Rating - The report assigns a "Buy" rating to the company, indicating a potential upside in the stock price [5][11]. Core Insights - The company is a leading player in the epoxy encapsulation materials sector, with plans to acquire the top domestic competitor, enhancing its market position and production capacity [5][9]. - The company has achieved significant technological advancements, allowing it to compete effectively against foreign manufacturers in both traditional and advanced packaging sectors [7][11]. - The acquisition of Hengsuo Huawai is expected to double the company's revenue and profit, further solidifying its position in the market [9][11]. Company Overview - The company specializes in semiconductor materials, particularly epoxy encapsulation materials (EMC), which are crucial for protecting semiconductor chips [7]. - As of February 21, 2025, the company's stock price was 90.41 CNY, with a market capitalization of 46.51 billion CNY [2]. - The company has a diverse customer base, including major domestic packaging firms such as Changdian Technology and Huatian Technology [7]. Financial Performance - For the first half of 2024, the company reported revenue of 149 million CNY from the EMC segment, accounting for 95.72% of total revenue, with a gross margin of 27.40% [7]. - The company anticipates a net profit of 46 million CNY in 2024, with a year-on-year growth of 44.26% [10][11]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.57 CNY, 0.79 CNY, and 0.95 CNY, respectively [10][11]. Market Position - The company holds a market share of less than 5% in the domestic EMC market but aims to increase this share through domestic substitution efforts [7][11]. - The company is positioned to benefit from the growing demand for advanced packaging materials, with several products currently undergoing customer validation [7][11]. Strategic Initiatives - The planned acquisition of Hengsuo Huawai is a strategic move to enhance market presence and operational efficiency, leveraging the management experience of the company's executives who have previously worked at Hengsuo Huawai [9][11]. - The company is also expanding its product offerings in electronic adhesives, which complement its EMC products and enhance its competitive edge in advanced packaging applications [11].