Local display testing equipment manufacturers expand the field of semiconductor memory device testing equipment. Established in May 2011, Jingzhida is mainly engaged in R&D, production and sales of new display device testing equipment. The products are widely used in functional inspection, calibration and repair of optical characteristics, display defects, and electrical characteristics in the manufacture of new display devices represented by AMOLED. At the same time, the company has laid out product lines such as wafer testing systems, aging repair systems, and package testing systems for the semiconductor memory device industry based on its technical accumulation in the field of testing new display devices. Currently, in the new display device industry, the company's main customers include BOE, TCL Technology, Vicino Co., Ltd., Shenzhen Tianma, etc.; in the field of semiconductor testing equipment, the company's probe card products, aging repair equipment, and aging repair jig boards have all been verified by major domestic semiconductor memory device manufacturers and have achieved mass sales performance, and have become their second supplier. In addition, the company is also actively arranging and storing products such as CP testing machines and FT testing machines, and cooperating with customers to develop storage test equipment for HBM to expand its product matrix.
Storage testing machine: continuous layout creates a second growth curve. The market size of semiconductor memory device test equipment is about 1.76 billion US dollars, and the localization rate is low. As local storage fabs actively expand production, it is expected to lay a solid foundation for domestic equipment order growth. Jingzhida is a scarce domestic DRAM testing manufacturer. Its products cover probe card products, aging repair equipment, aging repair jig boards, and silicon-based micro-display wafer testing equipment. The wafer tester and FT tester are being developed according to the plan. Among them, the prototype verification work for the wafer tester is nearing completion. At the same time, for the potential HBM market, the company's 9Gbps high-speed interface ASIC chip used in FT testers has already entered the engineering flow stage, solidifying the key supply chain foundation for subsequent wafer testers covering next-generation memory devices such as HBM.
Panel inspection equipment: Downstream production expansion drives demand and opens up space for new product development. In 2024, China's new display device testing equipment market will reach 9.2 billion yuan. The company is expected to benefit from downstream capacity expansion and its own new product development dividends. Currently, AMOLED medium size products are gradually penetrating into IT, automotive, flat panel display and other application markets. Manufacturers such as BOE, Vicino, TCL Technology, and Shentianma occupy the vast majority of domestic AMOLED production capacity and continue to invest in the construction of new production lines. The company has developed medium-sized display devices and micro LED/micro OLED related testing equipment, obtained batch orders, and actively participated in the planned construction project of the domestic G8.6 AMOLED production line. The company is actively expanding array segment testing equipment and is expected to open up new incremental space in the future.
Investment advice: We expect the company to achieve revenue of 9/12/16 billion yuan in 2024-26, up 39%/37%/29% year on year, and net profit to mother of 1.5/2.0/ 270 million yuan, respectively, up 29%/36%/32% year on year, corresponding PE 32/24/18 times. Comparable companies averaged 40 times PE in 2024. Considering the company's advantages in the field of semiconductor testing equipment and display testing equipment, as well as the certainty of expanding and upgrading downstream production lines, the first coverage gave the company a “buy” rating based on the company's valuation situation.
Risk warning: Iterative risk of technology development and upgrading; increased risk of market competition; risk of deviation in industry size measurement; untimely update of research report usage information.