V-Test(SH:688372) China Post Securities·2025-05-09 07:50Investment Rating - The investment rating for the company is "Buy" and is maintained [1][6]. Core Views - The company is a leading independent third-party testing enterprise in China, focusing on high-end chip testing. Since its establishment in 2016, it has developed a business model centered on independent integrated circuit testing services, expanding into wafer testing and finished chip testing. The company benefits from increased testing demand due to market recovery and new customer production, leading to improved capacity utilization and a significant increase in high-end product testing revenue, with projected revenue of 1.077 billion yuan and a net profit of 128 million yuan in 2024 [4][15]. - The high-end chip and advanced packaging processes are expected to increase the proportion of testing costs, with the Chinese mainland's chip testing service market projected to reach 100 billion yuan by 2030. The integrated circuit testing market in China was valued at 38.3 billion yuan in 2023, with a year-on-year growth of 6% [4][32]. - The growth of Taiwanese leader King Yuan Electronics validates the independent third-party testing service model, indicating significant market potential in mainland China for domestic enterprises to catch up [4][32]. Summary by Sections Business Overview - The company has established itself as a leader in independent third-party testing services, focusing on high-performance chips, advanced architectures, and high-reliability chips. It has continuously improved its testing capacity and service offerings, particularly in high-end chip testing [4][10][26]. Financial Forecast and Metrics - The company is projected to achieve revenues of 1.406 billion yuan in 2025, 1.833 billion yuan in 2026, and 2.309 billion yuan in 2027, with corresponding net profits of 195 million yuan, 311 million yuan, and 449 million yuan. The current stock price corresponds to a P/E ratio of 45 for 2025, 28 for 2026, and 20 for 2027, maintaining a "Buy" rating [5][6]. Market Potential - The independent third-party testing service model is gaining traction in the semiconductor industry, with significant growth opportunities as domestic companies increase their market share. The company is well-positioned to capitalize on this trend, especially in high-end chip testing [4][32]. Customer Base - The company has built a diverse customer base, including major chip design, manufacturing, and packaging firms. The shift of high-end testing orders to domestic suppliers has accelerated the localization process in the semiconductor industry [26][28]. Capital Expansion - The company plans to raise 1.175 billion yuan through convertible bonds to expand its testing capacity in Wuxi and Nanjing, focusing on high-end chip testing. Approximately 90% of the revenue from these projects is expected to come from high-end chip testing services [30][31].