illuviumcryptogame| Anji Technology (688019): Excellent performance and optimistic about semiconductor recovery

Event: the company released its quarterly report of 2024. Q1 achieved 378 million yuan in revenue and yoy+40.51%,qoq+11.41%; returned to its mother with a net profit of 105 million yuan.IlluviumcryptogameYoy+37.93%,qoq+20.35%; deducts non-return net profit of 105 million yuan, yoy+50.70%,qoq+31.66%, performance is in line with expectations. Conclusion and suggestion: the company is the leading enterprise of CMP polishing fluid in China, 24Q1 revenue and profit are greatly increased compared with the same period last year, and Q1 gross profit margin is higher than the same period last year. It is optimistic that the core competitiveness of the company's "311" technology platform will be improved steadily, and the polishing solution, functional wet electronic chemicals, electroplating solution and additives, and upstream core raw materials will be developed in coordination. Under the background of semiconductor domestic substitution, it is optimistic that the company will accelerate its growth and maintain its "buy" rating. Outstanding performance, double increase in revenue and net profit compared with the same period last year: Q1 company strengthens with customers in 24 yearsIlluviumcryptogameCooperation and exchanges, and actively promote new business development, revenue and profits have increased compared with the same period last year. Benefiting from the change in product structure and the improvement in the production efficiency of some production lines, Q1's gross profit margin increased by 2.21pct to 58.45% year-on-year. The company deducts a large increase in non-parent net profit, mainly because the investment income brought by 2023 company's overseas investment in Qingdao Juyuan Xinxing equity investment partnership (limited partnership) is about 6 million yuan. The amount of government subsidies included in the current profit and loss in 2024 is basically the same as the loss of fair value changes in foreign investment, and the total number of non-recurrent profit and loss items is relatively small. Maintain high R & D investment and reasonable cost control during the period: due to revenue growth, the expense rate during the Q1 period decreased by 1.59pct to 27.37% compared with the same period last year. Among them, the R & D expenditure rate increased by 19.10% compared with the same period last year, and the company continued to maintain a high proportion of R & D investment to ensure competitiveness. The rate of sales expenses decreased to 2.59% compared with the same period last year; the rate of administrative expenses increased by 0.62pct to 6.03% compared with the same period last year; and the financial expenses decreased by 8.46 million yuan over the same period last year. Domestic alternative promotion, optimistic about the recovery of semiconductors: under the background of the tense international trade situation of semiconductors, the demand for domestic alternatives is accelerating. The progress of wafer process also promotes the demand of CMP polishing materials. the more advanced the process is, the more the number of repetitions of planarization in wafer manufacturing is, and the demand for CMP polishing materials continues to increase. We are optimistic that the company will continue to improve in sales and market share. Profit Forecast: we maintain the profit forecast and expect the net profit of 2024 and 2025 to achieve net profit of 5.60 and 976 million respectively in 2026, equivalent to EPS of 5.65 and 7.55 and 9.85 yuan respectively. At present, the share price of A shares corresponds to PE of 25-19-14, the valuation is on the low side and the "buy" rating is maintained. Risk tips: 1, the price of the company's products is lower than expected; 2, the release of new capacity is not as expected; [disclaimer] this article only represents the views of third parties and does not represent the position of Hexun. Investors operate accordingly, at their own risk.

[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.