Yanmade(SH:688312) ZHONGTAI SECURITIES·2024-09-18 08:03Investment Rating - The report assigns an "Accumulate" rating for the company, marking the first coverage with a market price of 20.36 CNY [1][2]. Core Insights - The company is a leading player in FPC testing equipment, entering a new phase of rapid development, primarily serving the Apple supply chain and expanding into semiconductor testing and automotive sectors [1][6]. - The company has a strong operational quality and profitability, with a projected revenue growth driven by the upcoming AI iPhone innovation cycle [1][2][11]. - The company's R&D investment has significantly increased, with a focus on maintaining technological leadership and responding to market demands [21][24]. Summary by Relevant Sections Company Overview - The company specializes in automated testing equipment and testing fixtures, primarily for consumer electronics such as smartphones and tablets [8][11]. - It has established a strong customer base, including leading global FPC companies, and has expanded its international presence [6][11]. Market Context - The upcoming AI iPhone is expected to create a new cycle of growth in the consumer electronics market, benefiting equipment manufacturers [2][6]. - The MEMS sensor market is projected to grow significantly, with the company actively developing testing equipment for this sector [2][6]. Financial Performance - Revenue is expected to grow from 4.3 billion CNY in 2024 to 7.0 billion CNY in 2026, with net profits projected at 75 million CNY and 170 million CNY respectively [2][11]. - The company has maintained a high gross margin, with automated testing equipment contributing significantly to revenue [14][16]. R&D and Innovation - The company has increased its R&D expenditure, with the R&D expense ratio rising from 14.76% to 32.09% [21][24]. - It employs a proactive R&D approach to stay ahead of industry trends and customer needs [21][24]. Shareholder Structure - The company's ownership is concentrated, with the founders holding a significant portion of shares, which reflects confidence in long-term growth [24][25].