Jingzhida announced the 2023 annual results report: the company achieved total operating revenue of 648.5633 million yuan in 2023, an increase of 28.53%; net profit attributable to owners of the parent company was 116.7608 million yuan, an increase of 76.73% year on year; net profit attributable to owners of the parent company after deducting non-recurring profit and loss was 854.226 million yuan, an increase of 62.29% year on year.
Key points of investment
Display and storage testing equipment drive both revenue and profit growth
The company achieved total revenue of 648.5633 million yuan in 2023, an increase of 28.53% over the previous year. Revenue grew rapidly, mainly due to the continuous increase in market recognition of the company's new display testing equipment and semiconductor memory device testing equipment, which led to rapid growth in sales scale. The company's operating profit in 2023 increased 85.53% year on year, total profit increased 84.80% year on year, and net profit attributable to parent company owners increased 76.73% year on year; net profit attributable to owners of the parent company after deducting non-recurring profit and loss increased 62.29% year on year, and basic earnings per share increased 54.26% year on year. The profit level increased significantly, mainly due to the optimization of the company's customer structure, changes in product structure, and expansion of sales scale.
Leading manufacturers of display testing equipment. Continued growth in panel market demand benefits from the recovery of downstream consumer electronics terminals. Coupled with the new demand for medium-sized OLED applications in the IT and automotive markets, the market demand for OLED panels continues to grow. However, there is a large gap in domestic panel production capacity. Panel companies are speeding up production capacity layout, and demand for panel inspection equipment continues to grow. The company actively lays out microdisplays such as micro-LED and micro-OLED, and has continued to obtain orders for micro-LED related testing equipment. The company's overall panel business has maintained steady growth, and the customer structure has also been significantly optimized compared to 2022. Technology development and equipment verification work in the field of miniature displays is also being carried out in an orderly manner.
Storage customers develop significant breakthroughs and invest in high platinum technology to build core competitiveness
Based on its technical accumulation in the field of testing new display devices, the company actively lays out for the semiconductor memory device testing industry, and strategically focuses on independent research and development of products such as DRAM testers and probe cards. The company's semiconductor memory device testing equipment is currently progressing smoothly. Among them, the DRAM wafer aging test equipment has completed technical development and testing and has entered the verification stage; the DRAM tester is still in the continuous R&D testing stage; the probe card business has made significant breakthroughs and entered the batch delivery stage, and the overall trend is optimistic. The company has developed semiconductor customers such as Changxin Technology, Peyton Technology, and Jinhua Integrated and achieved product delivery. At the same time, the company invested RMB 29 million in Shenzhen Gaobai Technology Co., Ltd. Its self-developed signal processing engine chip focuses on storage testing applications, covering products such as DDR4, DDR5, LPDDR4, and LPDDR5, and was officially launched in October 2023. As a domestic alternative in the ATE equipment field, this investment in Hi-Platinum Technology will help rapidly promote the localization of core signal processing engine chips for the company's test equipment. By extending the industrial chain layout, it will help the company build core technical competitiveness and a safe and reliable supply chain in the ATE equipment field.
Profit forecasting
It is predicted that the company's revenue for 2023-2025 will be 6.49, 9.30, and 1.23 billion yuan respectively, and EPS will be 1.24, 1.80, and 2.49 yuan respectively. The current stock price is 50.6, 34.9, and 25.2 times PE, respectively. The company has accumulated a strong accumulation of new display and testing equipment, creating a second growth curve. The company has developed semiconductor customers such as Changxin Technology, Peyton Technology, and Jinhua Integrated and achieved product delivery. We believe that with the growth of AI and high-performance computing demand, global storage demand will continue to increase. The continuous rise in the price of DRAM memory chips will drive demand for upstream storage and testing equipment. The company's storage and testing equipment volume is expected to continue to benefit. It is covered for the first time, giving it an “increase in weight” investment rating.
Risk warning
The risk of increased competition in the industry; the risk of developing new products and new technology; the risk of management risks due to the expansion of the company's scale; the risk of falling short of expectations in product delivery; the risk of downstream demand falling short of expectations; the risk of business collaboration falling short of expectations; and the risk of continued losses in the investment target company.