The company achieved annual revenue of 9.065 billion yuan, YOY+44.73%, of which etching equipment was about 7.277 billion yuan, YOY+54.72%, which was the main factor for revenue growth; the net profit attributable to the parent company was 1.616 billion yuan, YOY-9.53%; The gross profit margin was 41.1%, a year-on-year decrease of 2.7pct. In a single quarter: the company achieved 3.558 billion yuan in 2024Q4, qoq +72.76%; the net profit attributable to the parent company was 703 million yuan, QoQ +77.32%; The gross profit margin was 39.26 pct, QoQ-4.47 pct, and the company's contract liabilities were 2.586 billion yuan as of the end of 2024Q4, +235.2% year-on-year. As the company's higher-value equipment and new layout equipment types gradually pass the verification in the downstream, and the R&D investment continues to grow, we revise the company's 2025/2026 revenue upwards and downward revision of the net profit attributable to the parent in 2025, and it is expected that the company's revenue in 2025-2027 will reach 122/160/20 billion yuan respectively (110/14.1 billion yuan before 2025/2026), and the net profit attributable to the parent company will reach 22/32/4.5 billion yuan respectively (2025/2026 previous value of 24/ 3.2 billion yuan), based on the closing price on April 17, 2025, the PE for 2025-2027 is 54/38/27 times, respectively, maintaining a "buy" rating.

The research and development of new products is progressing smoothly, and the high-end + platform layout is progressing

steadily The research and development of the company's various lines of products is progressing smoothly: (1) Etching equipment: logic chips have been mass-produced from 65 to 5nm and more advanced nodes; In terms of memory chips, the ICP etching machine for ultra-high aspect ratio mask etching is currently successfully verified on the production line, and the process capacity can meet the needs of the most advanced memory chip manufacturing in China. In addition, CCP etching equipment for ultra-high aspect ratio media etching is in mass production. (2) MOCVD equipment: PRISMO HiT3, a high-temperature MOCVD device for manufacturing deep ultraviolet LEDs, and PRISMO PD5, a MOCVD device for GaN-on-silicon power devices, have been verified and passed on the customer's production line and received repeated orders; Large-scale production of PRISMO UniMax, a MOCVD system for Mini-LED production, has also begun. (3) Thin film deposition equipment:

The company has achieved the efficient R&D and delivery of six kinds of thin film deposition equipment, of which the cumulative shipment of LPCVD thin film equipment has exceeded 150 reaction tables, and the R&D process of many other key thin film deposition equipment R&D projects is relatively smooth, and it is expected to enter the customer verification stage as soon as possible. We believe that with the gradual effectiveness of the company's high-end equipment and platform-based strategy, the company's market space and profitability will increase simultaneously, and it is expected to contribute to performance growth in the future.

Risk warning: The expansion of downstream wafer factories is less than expected, and the progress of new product development and introduction is less than expected.