New micro-display technologies such as Micro LED and Micro OLED are widely used and have a broad market space. (1) Micro LEDs are all new products that have upgraded LED display technology after small-pitch Mini LEDs. In addition to inheriting the advantages of seamless splicing, wide color gamut, low power consumption and long life, they also have the advantages of good protection, large viewing angle, high PPI, high brightness and contrast, and higher pixels, and are expected to become one of the main micro-display solutions for future high-end headsets and high-end outdoor wearable terminals. (2) Micro OLED is known as “the most suitable microdisplay technology for the near-eye display industry”. It integrates electronics, optics, materials, semiconductors and other technologies. In addition to having the characteristics of OLED technology such as self-luminescence, fast response speed, wide operating temperature range, and full solid state, it also has the characteristics of small size, light weight, low power consumption, and high PPI. It is mainly used in near-eye display systems and is the core component of near-eye display systems.
Tablet testing equipment: Established a good cooperative relationship with customer A and Samsung, acquired Olitom in 20 years, and expanded customer A's business line from iPhone and iPad to Apple Watch, AirPods, and HomePods. (1) In terms of traditional display technology, the company has achieved coverage of LCD and OLED testing of mainstream flat panel displays, and flexible OLED Mura compensation equipment continues to maintain a leading position in cumulative installed capacity in China. (2) In addition to this, the company is actively expanding the testing business of emerging display technologies. Currently, it has technical reserves and continues to invest in R&D on the three technology routes of miniLED, micro-LED and micro-OLED. Micro-LED series test equipment has been supplied to end customers for trial and verification, and micro-OLED series testing equipment actively cooperates with many end customers in product testing and new product development. According to IDC forecasts, global shipments of VR/VR headsets will exceed 40 million units in 2024. Driven by demand for emerging consumer electronics products, new micro display technologies such as Mini/Micro LED and Micro OLED will have broad market prospects in the future, and will also drive the growth in demand for supporting flat panel display inspection equipment in the future.
Other business: (1) Semiconductor testing business: Currently, the company's semiconductor testing business is mainly focused on back-end testing. It independently develops second-generation SOC testing machine T7600 series products, and has achieved mass production for chip tests such as fingerprints, image sensors, MCU, and TOF. (2) New energy vehicle testing business: The company provided the first PMU process production line for well-known domestic customers and achieved business breakthroughs; in the field of power batteries, it provided high-value BMS test production lines for well-known domestic customers; in overseas markets, it worked with leading overseas customers to fully cooperate in the fields of thermal management, automotive chips, high-voltage modules and ICT testing.
Profit forecast, valuation and rating: The company is a leading supplier of tablet and smart wearable testing equipment in China. New energy vehicle testing and MR equipment is expected to gradually expand. Due to weak consumer electronics demand and the decline in traditional panel inspection business, we lowered the company's net profit to the mother for 23 years to 259 million yuan (-56.8%), and reduced net profit to the mother for 24 years to 358 million yuan (-56.0%). The corresponding PE is 35x/26x/20x, maintaining the “buy” rating.
Risk warning: the risk of increased competition in the market, the risk of developing new markets falling short of expectations, and high customer concentration.