occurrences

Jingzhida released its 2024 semi-annual report: in the first half of 2024, the company achieved operating income of 0.362 billion yuan, a year-on-year increase of 46.15%; realized net profit attributable to shareholders of listed companies of 0.038 billion yuan, an increase of 10.57% year on year; realized net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss of 0.031 billion yuan, an increase of 45.34% year on year.

Key points of investment

Revenue and profit increased with high quality, and Q2 gross margin increased sharply from month to month

The company is deeply involved in the new display device testing equipment business and semiconductor memory testing equipment business. Various work plans have been carried out smoothly, and new breakthroughs have been continuously achieved, and business performance continues to grow steadily and rapidly. The company achieved revenue of 0.362 billion yuan in the first half of the year, up 46.15% year on year, and net profit of 0.038 billion yuan, up 10.57% year on year; of these, Q2 achieved revenue of 0.279 billion yuan, up 41.96% year on year, net profit 0.053 billion yuan, up 46.88% year on year, gross margin of 43.21%, up nearly 10 percentage points from month to month. The overall business scale and profit level maintained a high-quality growth trend.

New display testing core vendors, growing display demand drives growth

The launch of two domestic G8.6 AMOLED production lines brought a new round of demand for equipment. The company actively develops cell and module related testing equipment suitable for G8.6 AMOLED, and simultaneously rapidly lays out and strengthens R&D in the field of micro displays such as micro LED and micro OLED; in the field of micro displays such as micro LED and micro OLED, the company develops and mass-produces a series of products such as signal generators, wafer inspection equipment, optical inspection and correction equipment, and terminal finished product inspection equipment, and obtained good sales performance.

According to Omdia's forecast, China's OLED panel production capacity is expected to account for 49.04% of the world in 2026, further driving the acceleration of localization of supporting equipment. Furthermore, increased demand for Mini/Micro displays will drive further growth in the company's performance.

Semiconductor storage test products cover R&D, and prototype verification is progressing steadily

Based on the accumulation of technologies such as ALPG processors and compilers, high-precision TG timing generators, DRAM testing and repair, the company has developed full-coverage product development for semiconductor memory back-end testing processes, including CP testing machines, probe cards, aging equipment, FT testing machines, etc. Among them, aging, probe cards, DRAM general inspection and verification systems, etc. have received customer orders and the market share continues to increase; the prototype verification of the first-generation CP tester has been completed, verification of the upgraded engineering prototype has been completed, and various key modules of the mass-produced prototype have begun in-factory verification; and the FT engineering prototype has moved into the customer site to enter the verification stage.

Profit forecasting

The company's revenue for 2024-2026 is 0.903, 1.203, and 1.582 billion yuan respectively, EPS is 1.63, 2.16, and 2.69 yuan, respectively. The PE corresponding to the current stock price is 24.7, 18.6, and 15.0 times, respectively. With storage driving semiconductor test equipment and the steady growth of display equipment, subsequent revenue and profit are expected to continue to increase, maintaining an “increase” investment rating.

Risk warning

Macroeconomic risks, risk of product development falling short of expectations, risk of increased industry competition, risk of downstream demand falling short of expectations.