Committed to testing equipment localization, expand the product line to promote performance growth. Jingzhida is mainly engaged in the research, production and marketing of new display device testing equipment, and is committed to the independent controllability and domestic substitution of testing equipment. The company has new display devices Cell and Module process optical detection and correction repair system, aging system, touch detection system and other product lines, mainly used in the manufacture of new display devices represented by AMOLED. Semiconductor memory device testing equipment mainly includes memory wafer testing system, memory aging repair system, memory packaging and testing system, etc., which is still in its infancy, and the realization income temporarily comes from the localized delivery mode. Ruili Integration (Changxin Storage), Peyton Technology, Jinhua Integration, Tongfu Micro Power and other customers have been developed and delivered.
Demand: China's panel industry is gradually mature, the memory chip industry is developing rapidly, and local test equipment manufacturers are expected to rise. Mainland China has become the main producing area of TFT-LCD, while AMOLED production capacity is rapidly transferred to China. It is estimated that the market of Chinese mainland testing equipment will reach 9.2 billion yuan in 2024, of which Cell and Module processes will reach 4.6 billion yuan. In the field of memory chips, China has a broad consumer market. With the increase of capital expenditure of memory wafer manufacturers and closed test manufacturers, domestic memory chip production lines have a strong demand for independent control of test equipment. Jingzhida and other local test equipment manufacturers are expected to fully benefit.
Supply: Chinese manufacturers strengthen independent research and development, and there is a broad space for domestic substitution. Chinese testing equipment manufacturers have gained a dominant position in Cell and Module processes, but the localization rate of Array processes is still low. Among the Array process testing equipment of Chinese mainland AMOLED industry in 2021, the localization rate is about 8%. In the process of Module and Module, mainland detection system manufacturers such as Jingzhida have developed rapidly and gradually gained a dominant position in the domestic market, with a localization rate of 86% in 2021. The global semiconductor test equipment industry presents a highly concentrated competition pattern, and Terrida, Edwin and Kexiu have a high market share of test equipment in the future.
Growth point: to achieve self-control of domestic testing equipment, rapid response to local customers. The scale of China's storage market is vast, and storage wafer factories have a strong demand for independent and controllable testing equipment. The company cooperates with UniTest and independently develops DRAM testing machine and probe card, which can quickly respond to customer needs and is expected to fully benefit from the trend of localization. The new display technology presents the characteristics of more advanced, more complex process, higher degree of integration and refinement, which requires related equipment to achieve automation and integration. With the excellent performance parameters and sound product system, the company is expected to fully benefit from the maturity of the panel industry in mainland China.
Coverage for the first time, giving a "overweight" rating. It is estimated that the operating income of the company from 2023 to 2025 is 6.95,10.36 and 1.357 billion yuan respectively, and the return net profit is 1.10,1.75 and 257 million yuan respectively, and the corresponding PE is 70,44,30 times respectively.
Risk tips: downstream market demand, new product research and development progress, product competitiveness is not as expected