Shenzhen SEICHI Technologies (SH:688627) Dongxing Securities·2024-09-03 00:00Investment Rating - The report assigns a "Recommended" rating for the company, indicating a positive outlook for its future performance [2]. Core Insights - The company has established itself as a leader in the new display device testing equipment and semiconductor storage device testing equipment sectors, benefiting from the domestic production trends in OLED and DRAM [2]. - The company's revenue has shown significant growth, increasing from 157.2 million yuan in 2019 to 649 million yuan in 2023, with a compound annual growth rate (CAGR) of 32.83% over five years [20]. - The company is expanding its product offerings to include semiconductor testing systems, which are expected to drive further growth [19]. Summary by Sections 1. Company Overview - The company has been focused on new display device testing equipment for over a decade, developing a comprehensive product system that includes optical detection and calibration systems, aging systems, touch detection systems, and signal generators [1][13]. - Established in May 2011, the company went public on the STAR Market on July 18, 2023 [1]. 2. Market Trends - The AMOLED market is expanding, with production capacity shifting to domestic manufacturers, which is expected to drive growth in the new display testing equipment market [1]. - The semiconductor storage device market is also growing due to increased demand driven by AI, leading to a corresponding rise in testing equipment needs [2]. 3. Financial Performance - The company's revenue from new display device testing reached 565 million yuan in 2023, a year-on-year increase of 27.33%, while semiconductor storage testing equipment revenue reached 83 million yuan, growing by 45.52% [20][22]. - The company’s net profit for 2023 was 112 million yuan, a 74.81% increase from the previous year [20]. 4. Investment Recommendations - The report forecasts earnings per share (EPS) of 1.65 yuan, 2.31 yuan, and 3.13 yuan for the years 2024, 2025, and 2026, respectively, indicating strong future profitability [2][5].