Based on the inspection of new display devices, Jingzhida Technology expanded to the semiconductor field for more than ten years. The company was founded in 2011 and was initially engaged in the development of touch inspection equipment for new display devices. After 2015, the company gradually expanded into fields such as optical inspection, correction, and repair, aging, and signal generation of new display devices, and established stable cooperative relationships with Vicente, JD, Tianma, and TCL to continue to accumulate mass production experience; since 2019, the company has taken the lead in deploying cutting-edge micro LED inspection technology in the field of new displays Orders have also been obtained in the field, while expanding the joint venture with UniTest to develop semiconductor equipment to the semiconductor market. The MEMS probe card has now been verified for mass production and has become an important supplier and strategic partner of Hefei Changxin Storage. Relying on a strong technical team and shareholder background, it will further expand the DRAM testing machine market in the future.
After a long period of technology accumulation, the company has a rich product line covering head panel manufacturers and optical inspection systems for cell processes and module processes in the field of new displays, to achieve domestic replacement of key inspection equipment, and has established stable cooperative relationships with customers such as Vicino Co., Ltd., TCL Technology, Guangzhou Guoxian, Hefei Vicente, Shenzhen Tianma, etc.; in the semiconductor field, the company cooperated with Unitest to develop DRAM wafer aging test equipment products and DRAM aging repair Localized production of equipment products, and independent research and development of products such as MEMS probe cards and DRAM FT testing machines. The main customers that have been developed include Changxin Technology, Zhaoyi Innovation, Payton Technology, Jinhua Integration, Tongfu Microelectronics, and Taiji Industrial.
The company's future growth relies on new display devices and storage capital expenses to realize that new dual-wheel drive display devices have gone through industrial transfers. Currently, mainland China's share of global production capacity in the field of new display devices is gradually increasing. The trend of equipment localization is remarkable, and equipment investment accounts for 60% to 80% of the total investment in the overall production line. It is estimated that the domestic market size of new display device testing equipment will also increase from 3.4 billion yuan in 2021 to 4.6 billion yuan in 2024. The company's technical reserves are in line with the technology routes and industry trends of major customers in AMOLED, Micro LED and large ultra-high resolution TFT-LCD. The company has common technologies in the field of new displays and semiconductors. In the semiconductor field, in terms of the overall macro market, as the semiconductor industry is adjusted in 2023, test equipment and packaging equipment leading cities are expected to grow by 7.9% and 16.4% respectively in 2024. Testing machines are the equipment category with the largest share in the semiconductor testing market. The company chose DRAM memory device testing machines as the main focus through comprehensive research. The testing machine is technically difficult, the localization rate is low, and the unit price is as high as 1-3 million US dollars. In the future, with the expansion of production of domestic DRAM IDM manufacturers such as Fujian Jinhua and Changxin Storage, it is expected that test equipment will be introduced and MEMS probe cards will be launched.
Investment advice
We expect the company's revenue for 2023-2025 to be 652 million/912 million/1,233 million yuan, respectively. Net profit attributable to mother was 99 million/158 million/203 million yuan, respectively, and EPS was 1.06 yuan/1.68 yuan/2.16 yuan per share. The corresponding PE is 54/34/26 times, respectively. The first coverage gives a “buy” rating.
Risk warning
Storage plant production expansion falls short of expectations, downstream demand falls short of expectations, panel factory production expansion falls short of expectations