Core views
Based on long-term development confidence and recognition of its own value, in order to fully stimulate the enthusiasm of the company's employees, establish a long-term incentive mechanism for the company, bind core technical talents, and plan to use its own funds to buy back stocks and use them for employee stock ownership plans or equity incentives in the future. On the business side, the company's panel business is expected to maintain steady growth and has been introduced to the top four major customers. We believe that there is still room for growth in the micro display field and array end equipment in the future; the semiconductor business volume is worth looking forward to. The aging equipment and self-developed MEMS probe cards that the company and Unitest have formed mass sales, and introduced core DRAM customers such as Ruili Integration (Changxin Storage), Peyton Technology, and Jinhua Integration. The future volume is worth looking forward to.
occurrences
The company plans to use its own funds to buy back some of the RMB common shares already issued by the company through centralized bidding transactions.
Brief review
Buybacks are used for employee shareholding/equity incentives, demonstrating medium- to long-term development confidence. The company is based on long-term development confidence and recognition of its own value. In order to fully stimulate the enthusiasm of the company's employees, establish a long-term incentive mechanism for the company, bind core technical talents, and plan to use its own funds to repurchase shares with its own funds for future employee stock ownership plans or equity incentives. The repurchase price was no more than 83.57 yuan/share, and the repurchase capital was 30-50 million yuan. According to the maximum price calculation, the number of repurchases was 35.90—598,300 shares, accounting for 0.38%-0.64% of the company's total share capital. As of the disclosure date, the company's controlling shareholders, actual controllers, and their co-actors, directors, supervisors, and executives have no plans to reduce their holdings within the next 6 months, and other shareholders holding 5% or more of their shares have no plans for the next 3 months.
The OLED panel business continues to grow steadily. It is expected that Semiconductor Testing Machine Release Company is a testing equipment and system solution provider, mainly engaged in R&D, production and sales of new display device testing equipment. The products are widely used in the detection, calibration and repair of optical characteristics, display defects, and electrical characteristics in the manufacture of new display devices represented by AMOLED, and gradually expand into the field of semiconductor memory device testing equipment.
Looking at the two major businesses: the OLED panel inspection business is expected to maintain good growth, and downstream capital expenditure is active. The company's products have been introduced to panel manufacturers such as BOE, Vicino, Shentianma, and TCL Technology. In the future, it will consolidate its advantages and increase the market share on the cell and module side. In terms of new fields and products, there is still room for strength in the micro display field and array side devices. The semiconductor business binds key customers, and the future is worth looking forward to. The company's joint venture with Unitest for aging equipment and self-developed MEMS probe cards have been sold in batches, introduced to core DRAM customers such as Ruili Integration (Changxin Storage), Peyton Technology, and Jinhua Integration. They are working hard on CP and FT testing machines for DRAM, which can further expand the market space, and the future volume is worth looking forward to.
Investment advice
The company is expected to achieve net profit of 1.17, 1.62, and 227 million yuan respectively in 2023-2025, with year-on-year increases of 76.41%, 38.87%, and 39.94%, respectively. The corresponding PE is 57.97x, 41.75x, and 29.83x, respectively. It is covered for the first time, giving it a “buy” rating.