FHEC(688362) 长城证券·2024-05-09 00:02Investment Rating - The report maintains a "Hold" rating for the company, with expectations of a stock price increase relative to the industry index between -5% to 5% over the next six months [16]. Core Views - The company achieved a historical high in revenue for 2023, with a total revenue of 2.391 billion yuan, representing a year-on-year growth of 9.82%. However, the net profit attributable to the parent company was -93 million yuan, a decline of 167.48% year-on-year [10][19]. - The company is focusing on expanding its advanced packaging capabilities and has made significant investments in research and development to enhance its product offerings in the semiconductor market, particularly in automotive electronics [4][35]. - The company is expected to benefit from the recovery in downstream customer demand as the overall inventory destocking phase in the integrated circuit industry comes to an end [4]. Financial Summary - For 2023, the company reported a gross margin of 13.90%, down 8.01 percentage points year-on-year, primarily due to weak orders from downstream customers and price pressures on certain product lines [19]. - The first quarter of 2024 saw a significant revenue increase of 71.11% year-on-year, reaching 727 million yuan, with a gross margin of 14.23%, reflecting improved scale effects [10][19]. - The projected net profits for 2024, 2025, and 2026 are expected to be 21 million yuan, 159 million yuan, and 303 million yuan, respectively, with corresponding EPS of 0.05 yuan, 0.39 yuan, and 0.74 yuan [28]. Market Position and Strategy - The company is actively expanding its production capacity and enhancing its service capabilities to existing customers while also targeting new clients, including major players in Taiwan [35][36]. - The strategic focus includes the development of new product lines such as Bumping, CP, wafer-level packaging, FC-BGA, and automotive electronics, which are expected to drive future growth [4][35]. - The company has established a one-stop delivery capability, which is anticipated to shorten delivery times and improve quality control for customers [35].