Event Overview: On February 24, Jingzhida released its 2023 performance report. The company achieved annual revenue of 649 million yuan, a year-on-year increase of 28.53%; realized net profit of 117 million yuan, an increase of 76.73% over the previous year; and realized deducted non-net profit of 85 million yuan, an increase of 62.29% over the previous year.
23Q4 revenue and profit growth were high. In 2023, the company achieved revenue of 649 million yuan, corresponding to 23Q4 revenue of 277 million yuan, a year-on-year increase of 35.8%; in 2023, the company achieved net profit of 117 million yuan, corresponding to net profit of 23Q4 in a single quarter of 62 million yuan, an increase of 3.5% year-on-year and a year-on-month increase of 204.9%; in 2023, the company deducted non-net profit of 85 million yuan, corresponding to the 23Q4 single-quarter net profit of 54 million yuan, a year-on-year increase of 3.9%, month-on-month increase 428.4% Thanks to the steady growth of the company's main business, the new display testing equipment and semiconductor memory device testing equipment business, the company's revenue and profit all achieved a high growth rate in the 23Q4 single quarter.
The main business is steady, and the product line continues to be rich. The company's product line in the display field covers a wide range of optical inspection, correction and repair systems, aging systems, touch inspection systems, etc. in cell and module manufacturing processes. The products are widely used in new display devices represented by AMOLED, and customer service covers a wide range of leading manufacturers such as Vicino Co., Ltd., TCL Technology, BOE, Guangzhou Guoxian, Hefei Vicinuo, and Shentianma. At the same time, the company is actively expanding into the field of memory testing equipment, laying out product lines such as wafer testing systems, aging repair systems, and packaging test systems, and carrying out preliminary research on DRAM testing machines and probe cards. The product line is becoming more and more rich.
Wait for the new quantity of the test machine to be stored. Storage test equipment has a broad market space and a low level of localization. On the one hand, the company cooperates with Unitest, a leading overseas test equipment manufacturer, to develop DRAM wafer aging test equipment products and localize production of DRAM aging repair equipment products, and provides localized test system solutions to downstream customers. On the other hand, the company independently develops products such as probe cards and DRAM FT testers.
Currently, the company has developed many DRAM memory customers such as Ruili Integration (Changxin Storage), Payton Technology, and Jinhua Integrated. The number of new self-developed testing machines is expected to bring long-term growth to the company.
Investment advice: Considering that the company achieved revenue and profit growth that exceeded expectations in Q4 2023, we raised the company's 2023-2025 revenue forecast to 6.49/8.45/1,074 million yuan, and raised the company's 2023-2025 net profit forecast to 1.17/1.58/ 215 million yuan, corresponding to the current price of PE in 2023-2025 to 46/34/25 times. We are optimistic about the long-term growth brought about by the company's breakthrough product line in the field of storage testing machines, and maintain a “careful recommendation” rating.
Risk warning: The sealing and testing industry fluctuates; R&D progress falls short of expectations; customer introduction falls short of expectations.