Core View:

CMP market share continues to increase, wafer regeneration and maintenance business scale gradually increased. The Company releases its 23 annual report and its 24-year quarterly report. In 23 years, the company's income was 2.508 billion yuan, yoy plus 52.11%, the net profit of the parent was 0.724 billion yuan, yoy plus 44.29%, gross margin was 46.02, yoy-1.71pct, net margin was 28.86%,yoy-1.56pct. In the past 23 years, the company's CMP products have been affirmed by more customers and achieved many batch sales, and the market share has continued to increase; the company's wafer regeneration business has obtained batch orders from many large production lines and long-term stable supply. The market ownership of products continues to expand, and the scale of key consumables and maintenance services has gradually increased, and the operating income and net profit in the same period have achieved substantial year-on-year growth. 24Q1, the company's income is 0.68 billion yuan, yoy +10.4%, qoq +1.88%; Net profit attributable to mother is 0.202 billion yuan, yoy +4.27% , qoq +26.49%; Gross profit margin is 47.92, yoy + 1.27pct ,qoq +3.12pct; Net interest rate is 29.72%,yoy-1.75pct,qoq +5.78pct.

CMP iterative update solid leading edge, thinning, cutting and other new rapid breakthrough. According to the company's 23rd annual report, the first Universal H300 machine of the company has been sent to the client for verification, and small batch verification of multiple processes has been completed. It is expected to realize mass production in 24 years. Thinning equipment has received batch orders from head enterprises in many fields, and many mass production machines have been sent to clients. The company's 12-inch wafer thinning and film all-in-one machine has obtained an order for Demo, a leading integrated circuit packaging test, at the same time, the dry-cast packaging thinning machine is expected to be sent to the client for verification in the first half of 24 years, and the company's 12-inch wafer edge cutting equipment has been sent to a storage leader for verification in the first half of 24 years. With the company's outstanding advantages in the CMP field and the volume of equipment products in a number of new categories, the company is expected to be the first to benefit from the expansion of downstream wafer production lines and the domestic substitution process of equipment.

earnings forecasts and investment recommendations. The company's 24-26 year net profit is expected to be 9.82/12.49/1.536 billion yuan, maintaining the company's reasonable value of 249.61 yuan/share view unchanged, corresponding to 24 years PE 40 times, maintain the "buy" rating.

risk tips. Wafer plant expansion is less than expected, industrial policy changes, market development is less than expected.