Incident: Jingzhida releases semi-annual report

[24H1] Revenue of 0.362 billion yuan, up 46.15%, net profit to mother of 0.038 billion yuan, same increase of 10.57%, net profit after deduction of 0.031 billion yuan, same increase of 45.34%, gross profit margin of 40.97%, increase of 3.51 pcts, net profit margin of 10.50%, and decrease of 3.67 pcts. The company's net profit growth rate lower than the revenue growth rate was mainly due to a decrease in non-recurring profit and loss items. 24H1 non-recurring profit and loss was 7.1682 million yuan, a decrease of 6.0295 million yuan from 23H1's 13.1977 million yuan. Among them, 24H1 non-current asset disposal profit and loss was -0.0081 million yuan, a decrease of 13.2874 million yuan compared to 13.2793 million yuan in 23H1.

[24Q2] Revenue of 0.279 billion yuan, up 41.96%, up 235.42%, net profit to mother of 0.053 billion yuan, up 38.64% month-on-month loss, 24Q1 was -0.014 billion yuan, net profit after deducting net mother was 0.049 billion yuan, up 88.57%, month-on-month reversal loss. 24Q1 was -0.018 billion yuan, gross margin was 43.21%, up 5.55pcts year-on-year increase. 9.77pcts, net margin was 19.00%, -0.39pcts year over year, positive month-on-month, and -16.87% in 24Q1. The net interest rate of the 24Q2 company increased a lot month-on-month. On the one hand, the company's Q2 gross margin increased by 9.77pcts month-on-month. On the other hand, as the company's revenue grew, the cost ratio declined during the period, from 48.40% in 24Q1 to 20.20% in 24Q2, which greatly reduced the impact on net interest rates.

Storage testing machine: continuous layout creates a second growth curve.

The global semiconductor memory device testing equipment market is about 1.76 billion US dollars. It is mainly occupied by foreign manufacturers such as Edwin and Terada, 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. As a scarce domestic DRAM testing manufacturer, Jingzhida has successfully developed a universal memory test verifier, and received batch orders and contributed revenue. The development of the wafer tester and FT tester is being carried out according to plan. Among them, the engineering prototype verification work for the upgraded wafer tester has been completed, and in-factory verification of each key module of the mass-produced prototype has begun; the 9Gbps high-speed front-end interface ASIC chip used in the FT tester and the upgraded wafer tester has completed the first version of the verification test; and the FT tester engineering prototype has been moved to the customer site to enter the verification stage.

Panel inspection equipment: Downstream production expansion drives demand and opens up space for new product development.

In 2024, the market size of new display device testing equipment in China 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 mid-size products are gradually penetrating into IT, automotive, and flat panel display 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 completed technical iterations and product upgrades for Cell and Module related testing equipment for the G8.6 AMOLED production line, and is expected to benefit from the dividends of production expansion. At the same time, it has cooperated with core customers to develop G6 generation prototypes for verification of testing equipment related to the Array segment, which is expected to open up new incremental space in the future.

Investment advice:

We maintain our 2024-26 net profit forecast of 0.15/0.2/0.27 billion yuan unchanged, corresponding PE of 25/18/14 times, respectively. Considering the company's advantages in the field of semiconductor testing equipment and display inspection equipment, as well as the certainty of expanding and upgrading downstream production lines, the company's “buy” rating was maintained.

Risk warning:

Technology development and upgrade iterative risk; increased risk of market competition; risk of deviation in industry size measurement; untimely update of research report usage information.