Wuhan Jingce Electronic (300567) 华泰证券·2025-04-25 10:50Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 87.80 RMB [7][8]. Core Views - The company's semiconductor business has become a major growth pillar, with advanced process technology continuing to improve. The 14nm defect detection equipment has been delivered to customers, and the 7nm products have completed delivery and acceptance [1][3]. - The display business faced challenges in 2024 due to industry conditions but is expected to recover in 2025, with ongoing demand for capacity expansion from downstream [1][3]. - The new energy business is actively expanding with new products and customers, showing significant growth potential [1][3]. Summary by Sections Financial Performance - In 2024, the company reported revenue of 25.65 billion RMB, a year-on-year increase of 5.59%, but a net loss of 975.98 million RMB, a decline of 165.02% year-on-year. The gross margin was 39.97% [1][2]. - For Q1 2025, the company achieved revenue of 6.9 billion RMB, a year-on-year increase of 64.9%, and a net profit of 38 million RMB, marking a turnaround from losses [1][3]. Revenue Breakdown - In 2024, display product revenue was 15.9 billion RMB (62.0% of total revenue), down 9.0% year-on-year, while semiconductor product revenue was 7.7 billion RMB (29.9% of total revenue), up 94.6% year-on-year. New energy product revenue was 1.7 billion RMB (6.5% of total revenue), down 30.7% year-on-year [2][3]. - In Q1 2025, semiconductor revenue was 2.7 billion RMB, up 63.7% year-on-year, while display revenue was 3.8 billion RMB, up 42.5% year-on-year, and new energy revenue was 0.78 billion RMB, up 429.7% year-on-year [3]. Future Outlook - The company forecasts revenue of 34.6 billion RMB for 2025 and 43.1 billion RMB for 2026, with adjusted net profit estimates of 2.2 billion RMB for 2025 and 4.1 billion RMB for 2026 [4][12]. - The target price is based on a price-to-sales ratio of 7.1 for 2025, reflecting the company's revenue structure and short-term profit pressures [4][14].