Shenzhen SEICHI Technologies (SH:688627) Haitong Securities·2024-07-14 05:31Investment Rating - The report assigns an "Outperform" rating to the company, indicating a positive outlook compared to the market [11][28]. Core Insights - The company is expected to experience rapid revenue growth driven by the expansion of AMOLED production by downstream clients and progress in semiconductor testing equipment [13]. - The dual-driven development strategy focuses on new display device testing equipment and semiconductor storage testing equipment [14]. - The company achieved a revenue of 649 million yuan in 2023, representing a year-on-year increase of 28.53%, with a net profit of 116 million yuan, up 75.1% year-on-year [14]. Financial Projections - Revenue projections for 2024E-2026E are 883 million yuan, 1.18 billion yuan, and 1.61 billion yuan, with year-on-year growth rates of 36.07%, 33.86%, and 35.87% respectively [25][36]. - Net profit projections for the same period are 143 million yuan, 189 million yuan, and 246 million yuan, with year-on-year growth rates of 23.45%, 32.22%, and 30.43% respectively [25][36]. Business Segments - The new display device testing segment is expected to contribute significantly to revenue, with a projected growth rate of 26.72% in 2024E [10][24]. - The semiconductor storage testing equipment segment is anticipated to see substantial growth, with a projected revenue increase of 100% in both 2024E and 2025E [9][10]. Market Position - The company has established strong relationships with major clients in the display and semiconductor industries, enhancing its market position [2][4]. - The top five clients accounted for 86.76% of the total annual sales in 2023, indicating a concentrated customer base [3]. Valuation - The report utilizes a PE valuation method, suggesting a reasonable market value range of 4.998 billion yuan to 6.427 billion yuan, translating to a per-share value of 53.17 yuan to 68.36 yuan [28].