Focusing on chip yield improvement and rapid monitoring technology for electrical testing, the company can be expected to continue to grow at a high level. It is a leading supplier of integrated circuit EDA software and wafer-level electrical testing equipment. It is an important partner of many large integrated circuit manufacturing and design companies at home and abroad. The company's advanced solutions have been successfully applied to many integrated circuit process technology nodes, achieving high-quality localization replacement.

The compound growth rate of the company's revenue reached 55.26% in 2021-2023. In 2023, the company continued to enrich its product matrix centered on improving the yield of integrated circuits. The number of customers increased dramatically, and the customer range gradually expanded from mainly integrated circuit manufacturers to integrated circuit design and testing companies.

The policy promotes the rapid development of China's integrated circuit industry. The core link is to accelerate domestic substitution. According to data released by the China Semiconductor Association platform, the market size of China's EDA industry reached 11.56 billion yuan in 2022, and the growth rate reached 11.80%, exceeding the global industry development rate. The compound annual growth rate of China's EDA market is expected to be 15.64% from 2022 to 2025. At present, leading domestic EDA companies have reached the leading international technical level in some fields. The global semiconductor testing machine market is characterized by high concentration. The US Terada and Japan's Edwin, which have the highest market share, occupy about half of the market share. In the field of WAT electrical testing equipment, US Keysight also basically has a monopoly position in the market. The company is one of the few domestic companies with the ability to supply WAT electrical testing machines.

Build a “troika” of sustainable company performance. The company has broad room for continuous growth in the future. It is one of the few companies at home and abroad that can provide full-process coverage products and services in the field of yield improvement and electrical monitoring, forming a high technical barrier. The customer base includes first-class integrated circuit design and manufacturing companies at home and abroad, and yield improvement solutions have achieved systematic application of software and hardware in many leading companies. In order to meet the needs of different fabricators for equipment functionality and cost performance, the company optimized and upgraded and launched a next-generation general-purpose high-performance semiconductor parameter tester (T4000 model), a semiconductor parameter tester (T4000 Max) equipped with a self-developed high-performance matrix switch structure, and collaborated to develop functions such as WLR.

Investment advice and profit forecasting

The company is a leading supplier of integrated circuit EDA software and wafer-level electrical testing equipment. With the development of the global integrated circuit industry, there is plenty of room for continued growth in the future. The company's revenue for 2024-2026 is estimated to be 0.652, 0.91, 1.219 billion yuan, net profit to mother of 0.15, 0.208, 0.288 billion yuan, EPS 0.75, 1.04, 1.44 yuan/share, corresponding PE is 51.38, 37.03, 26.70 times, and the corresponding PS is 11.79, 8.46, and 6.31 times. Considering the future growth space of the industry and the continued growth of the company's business, the first rating was given a “gain in weight”.

Risk warning

The risk of technology development; the risk of slowing industry development; the risk of high customer concentration; the risk of scale expansion; the risk of seasonal fluctuations in revenue; and the risk of international trade friction.