Event: Jingzhida released its 2023Q3 quarterly report. In the first three quarters, the company achieved revenue of 371 million yuan, an increase of 23.60% over the previous year; net profit of 55 million yuan, 757.27% of the previous year, net profit after deduction of 32 million yuan, an increase of 3503.24% over the previous year.
Profitability strengthened and gross margin increased: In the first three quarters of 2023, Jingzhida's gross sales margin was 39.41%, reaching a record high in recent years. As the company's sales scale continues to expand and the share of products with high gross margin increases, the company's profitability has been strengthened. Compared with other domestic semiconductor testing machine companies, there is still a lot of room for improvement in the gross margin of the company's products; as the company's semiconductor testing machine research and development progresses steadily, future profit margins are expected to increase further.
Deeply involved in the field of panel display, stable customer relationships: the company deeply grasps the needs of customers in the panel display industry for improved yield and efficiency, and has established stable cooperative relationships with customers such as Visionox Co., Ltd., TCL Technology, BOE, Guangzhou Guoxian, Hefei Visionuo, and Shentianma. Jingzhida helps customers improve production process level, product yield and production efficiency, effectively reducing the dependence of domestic new display device manufacturers on imported equipment and procurement costs.
Business related to semiconductor testing machines is progressing steadily: the company's customers in the storage testing field mainly include Changxin Technology, GigaYi Innovation, Payton Technology, Jinhua Integration, Tongfu Microelectronics, Taiji Industrial, etc. The company has laid out product lines such as wafer testing systems, aging repair systems, and packaging testing systems, and has carried out preliminary research on DRAM testing machines and probe cards. Jingzhida has now achieved batch sales of some types of probe cards, and some test equipment has entered the verification stage, and is expected to benefit from the expansion of domestic memory production lines in the future.
Investment advice: Taking into account the impact of overseas restrictions on the company's important customers, industry prosperity, and new product development progress, we expect the company's net profit from 2023 to 2025 to be 1.16/1.87/266 million yuan respectively, corresponding to PE 70.64/43.95/30.98 times, maintaining the “increase in holdings” rating.
Risk warning: semiconductor market sentiment is declining; overseas supply risks; domestic semiconductor equipment demand is slowing down; high-end equipment development progress falls short of expectations; industry competition is intensifying.