Incident: Jingzhida released its 2024 semi-annual report: 2024H1 achieved revenue of 0.362 billion yuan, up 46.15% year on year; realized net profit of 0.038 billion yuan, up 10.57% year on year; net profit after deducting non-return to mother was 0.031 billion yuan, up 45.34% year on year.

New display device inspection technology and outstanding mass production experience: The company has launched various types of equipment covering optical characteristics, display defects, electrical characteristics and other functional inspection and repair of new display device wafers, cells and module processes, forming a highly competitive and relatively complete product line covering major process nodes. It has gained a stable market share in China, and has an advantageous position in the field of AMOLED and back-end cell and module production line inspection equipment. At the same time, it is actively expanding into the field of advanced array process inspection equipment. By accumulating a large amount of equipment manufacturing experience, the company's technical strength has been continuously strengthened.

The semiconductor memory device testing business is progressing steadily: For the field of semiconductor memory back-end testing, the company's aging repair equipment, jig boards, probe cards, and DRAM general inspection and verification systems have received orders from customers, and its market share continues to increase. The company's first version of the wafer tester has completed prototype verification, the upgraded engineering prototype verification work has been completed, and all key modules of the mass-produced prototype have begun in-factory verification; the FT tester engineering prototype has moved into the customer site to enter the verification stage; and the testing technology and equipment required for testing next-generation semiconductor memory devices have also made significant progress.

The products have been widely recognized by downstream customers: the company's core products have been used in batches on production lines of mainstream new display device manufacturers such as BOE, TCL Technology, Vicente, and Shenzhen Tianma, and memory manufacturers such as Changxin Technology and Payton Technology. The company's products are highly competitive, helping customers reduce equipment procurement costs and gradually replace domestic production in the supply chain while improving production quality, and have been widely recognized by customers.

Investment proposal: We expect the company to achieve operating income of 0.936/1.202/1.492 billion yuan and net profit of 0.173/0.238/0.299 billion yuan in 2024-2026. The corresponding PE was 21.84/15.93/12.66 times, respectively, maintaining the “gain” rating.

Risk warning: semiconductor market sentiment is declining; overseas supply risks; domestic demand for semiconductor equipment is slowing down; high-end equipment R&D progress falls short of expectations; industry competition intensifies.