Benefiting from continuous and high-intensity R&D investment, Tuojing Technology's new products and new process machines have made breakthroughs in client verification, and the mass production scale of PECVD, ALD, SACVD, HDPCVD, ultra-high aspect ratio trench filling CVD and other products has been expanding. The company has achieved revenue recognition for a number of process equipment developed based on new equipment platforms (PF-300M and PF-300TPlus) and new reaction chambers (Supra-D).

In 2024Q3, the company achieved revenue of 1.011 billion yuan, a year-on-year increase of 44.67% and a month-on-month increase of 27.14%, a record high. the net profit attributable to the parent company was 142 million yuan, a year-on-year decrease of 2.91% and a month-on-month increase of 19.87%; The net profit after deducting non-recurring profits was 46 million yuan, a decrease of 58.79% year-on-year and a decrease of 29.05% month-on-month, of which the non-recurring profit and loss increased significantly year-on-year, mainly due to the fair value change gain of 72 million yuan due to the increase in the price of the company's shares holding Kema Technology. The gross profit margin was 39.27%, a decrease of 12.40 percentage points year-on-year and a decrease of 7.62 percentage points month-on-month. The phased decline in gross profit margin was mainly due to the significant increase in the proportion of revenue from new products and new processes, and the relatively high cost of new products and new processes in the customer verification process.

The mass production scale of a number of new products continues to expand

The company's PECVD, ALD, SACVD, HDPCVD, ultra-high aspect ratio trench filling CVD and other thin film equipment product series and hybrid bonding equipment product series have been industrialized in the client, and the mass production scale has been gradually expanded, and its equipment performance and production capacity have reached the international leading level.

PECVD: The company's PECVD equipment has achieved the coverage of a full range of PECVD dielectric film materials, and the general dielectric film materials and advanced dielectric film materials have been industrialized. Two new equipment platforms (PF-300TPlus and PF-300M) and two new reactors (pX and Supra-D) continue to receive customer orders and shipments to multiple customers. The mechanical capacity of the two new equipment platforms can be increased by about 20% to 60%, and the new reaction chamber further improves the performance indicators of thin film deposition, including film uniformity, particle size and other indicators, which can meet the needs of customers for high production capacity and more stringent thin film performance indicators in the process of updating and iterating technology nodes.

ALD: The company's PE-ALD high-temperature and low-temperature SiO2, SiN and other films have been industrialized, and continue to obtain customer orders and shipments to customers for verification. Thermal-ALD equipment continues to receive orders and shipments to the client for verification, and the verified Thermal-ALD (TS-300Altair) equipment has received repeat orders again. In addition, the company continues to expand other Thermal-ALD thin film processes, continues to expand the coverage of thin film materials, and actively promotes the verification of customers, and the overall progress is smooth.

SACVD: The company's SACVD equipment that can realize the deposition of SATEOS, BPSG and SAF thin film processes has been further improved in the application scale of the domestic integrated circuit manufacturing production line.

HDPCVD: The company's HDPCVDUSG, FSG, and STI thin film process equipment have all been industrialized; As of August 2024, the cumulative shipment of HDPCVD reactors has reached 70, and the scale of mass production continues to expand.

Ultra-high aspect ratio trench filling CVD: The first product passed customer verification, realized industrial application, and obtained repeated orders from customers and orders from different customers. As of August 2024, more than 15 reactors related to this equipment have been shipped.

Hybrid bonding: Wafer-to-wafer bonding product Dione300 and chip-to-wafer hybrid bonding pretreatment product Propus have both been industrialized with excellent performance. Both products have received repeated orders for mass production from customers. Crux300, a product for the accuracy measurement of bond registration, has also received orders from customers.

Investment advice

In view of the long validation time required for the company's new products/new process tools and the relatively high cost of the validation process, we have adjusted our previous performance forecasts for the company. It is estimated that from 2024 to 2026, the company's revenue will be 3.870 billion yuan/5.250 billion yuan/6.615 billion yuan respectively (the original forecast value in 2024/2025 is 3.924 billion yuan/5.307 billion yuan), and the growth rate will be 43.1%/35.6%/26.0% respectively; the net profit attributable to the parent company was 570 million yuan/930 million yuan/1.287 billion yuan respectively (the original forecast value in 2024/2025 was 828 million yuan/1.090 billion yuan), and the growth rate was -13.9%/63.0%/38.4% respectively; The PE was 81.9/50.3/36.3, respectively. The company has achieved the coverage of a full range of PECVD dielectric film materials, the mass production scale of many new products such as ALD and SACVD continues to expand, and the hybrid bonding equipment has significantly benefited from the rapid development of advanced packaging technology. Continue to recommend and maintain the "Overweight-A" rating.