24H1 deducted no 45% increase, and Q2 reversed losses sharply. 24H1, the company achieved revenue of 0.362 billion yuan, +46.15%; realized net profit of 0.038 billion yuan, +10.57% year over year; realized net profit of 0.031 billion yuan, +45.34% year over year, achieved revenue of 0.279 billion yuan in single Q2, +41.96% year over year, +235.42% month on month; realized net profit without return of 0.049 billion yuan, +88.57% year over month, significant loss from month to month. Deductions are growing rapidly, and the company's real profit situation has improved markedly.

The gross margin increased significantly. 24H1 achieved gross profit margin of 40.97%, +3.51 pcts year on year, 43.21% gross profit margin in single Q2, +5.55 pcts year on year, and +9.77 pcts month on month.

Expense side: Management expenses increased 47.36% year over year, mainly due to increased management personnel and salary increases, as well as increased expenses such as company intermediary service fees. R&D investment increased by 89.84% over the same period last year. The main reason was that the company focused on long-term development, continued to expand the R&D team, and increased R&D efforts on new technologies and products, leading to an increase in R&D expenses. R&D expenditure laid the foundation for breakthroughs in the company's new product layout.

1. Display business closely follows downstream production expansion needs

The company's related equipment evolved iteratively to medium size, and won batch orders in mid-size production line expansion projects of mainstream domestic panel manufacturers. In addition, the launch of two domestic G8.6 AMOLED production lines has brought about a new round of capital expenditure. The company is actively developing Cell and Module-related testing equipment suitable for G8.6 AMOLED, and is simultaneously deploying forward array testing equipment.

2. The semiconductor business continues to advance iteratively

1) Probe card products, aging repair equipment, and aging repair jig boards have been verified by a domestic storage device factory, have achieved batch sales performance, and have become the company's second largest supplier; 2) The engineering prototype verification work for the next-generation storage CP testing machine has been completed, and all key modules of the mass-produced prototype have begun in-factory verification;

3) The FT testing machine engineering prototype has been moved to the customer site and entered the verification stage; 4) a general memory test and verification machine was developed and an official order was obtained from the customer in the first half of the year; 5) In terms of image sensor and display driver SoC testing technology and equipment, the company has laid out advanced domestic technology, expanded into the silicon-based micro display field, and achieved sales performance of silicon-based micro display wafer test equipment.

Profit forecast and investment advice: We expect net profit to be 0.147/0.206/0.255 billion yuan in 24-26, with year-on-year growth rates of 27.45%, 39.53%, and 23.94%, corresponding to the 24-25 PE of 25/18X, maintaining the “recommended” rating.

Risk warning: Downstream panel customer production expansion progress falls short of expected risk, new product verification progress falls short of expected risk, competition increases risk, etc.