Incidents:
On January 31, 2024, the company announced a pre-increase in its 2023 annual results. It is expected to achieve net profit of 105 to 120 million yuan in 2023, an increase of 59.93% to 81.63% over the previous year; net profit after deduction of 0.75 to 90 million yuan, an increase of 42.49% to 70.98% over the previous year.
Comment:
Net profit from 2023Q4 grew rapidly month-on-month, and various business lines continued to advance. 2023Q4 achieved net profit of about 0.50 to 65 million yuan, -16.12% to +8.97%, and +147.01% to +220.90% month-on-month; realized net profit of 0.43 to 0.58 billion yuan after deduction, -16.03% to +12.93% year-on-year, and +328.25% to +475.95% month-on-month. In terms of the new display device testing equipment business, the company actively lays out micro display fields such as micro-LED and micro-OLED, and continues to obtain orders for micro-LED related testing equipment. In terms of semiconductor memory device testing equipment business, probe card business is delivered in batches, DRAM wafer aging test equipment has completed technical development and testing, etc., and has entered the verification stage. The DRAM tester is in the R&D testing stage.
Committed to making domestic DRAM testing equipment autonomous and controllable. China's storage market is vast, and storage fabs have a strong demand for autonomous and controllable test equipment. The company cooperates with UniTest and independently develops DRAM testing machines and probe cards, etc., which can respond quickly to customer needs and is expected to fully benefit from the trend of localization. In December 2023, the company plans to acquire about 10.03% of Gaopai Technology's shares for 30 million yuan. Gobai Technology develops its own signal processing engine chips, and also lays out calibration, ATE machines, and programmable power solutions necessary for ATE, which can effectively support the R&D work of storing CP&FT machines.
Microdisplays continue to be developed to benefit from future AR/VR growth. For new display device testing equipment, on the one hand, the company continues to improve OLED inspection technology and further enrich the product line of new display device testing equipment; on the other hand, in the field of micro LED (micro LED, microOLED), the pixel size exceeds the limits of conventional optical systems. Currently, the company has developed inspection application solutions such as eye boxes, MTF, and phantom/ghost on the basis of near-eye display detection technology. The company is strengthening the research and development of miniature display testing equipment, which is expected to fully benefit from the growth in the AR/VR application market.
Give it an “gain” rating. The company's revenue for 2023-2025 is estimated to be 648, 9.56 billion yuan, and 1,260 million yuan, respectively, and net profit attributable to mother is 1.10, 1.57, and 226 million yuan, respectively, and the corresponding PE is 45, 32, and 22 times, respectively.
Risk warning: downstream market demand, new product development progress, product competitiveness falls short of expectations