Leadyo(SH:688135) Soochow Securities·2026-02-23 10:45Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company, Liyang Chip, is positioned as an independent third-party professional chip testing service provider, focusing on integrated circuit testing solutions and related services. It has established a strategic layout of "one body and two wings" to enhance its long-term competitive advantage [9][14]. - The company has seen a significant increase in revenue, with a projected growth in total revenue from 503.08 million yuan in 2023 to 964.95 million yuan by 2027, reflecting a compound annual growth rate (CAGR) of approximately 21.76% [1]. - The net profit is expected to recover from a loss of 61.62 million yuan in 2024 to a profit of 36.09 million yuan by 2027, indicating a strong turnaround in profitability [1]. Summary by Sections Company Overview - Liyang Chip was established in 2010 and specializes in integrated circuit testing, having developed over 44 categories of testing solutions applicable to various end-use scenarios, including advanced processes like 3nm and 5nm [14][9]. - The company is expanding its high-end testing capacity to meet the growing demand from existing and potential clients, particularly in sectors like automotive electronics and AI [9][14]. Market Dynamics - The integrated circuit design industry is growing, accounting for 44.6% of China's semiconductor industry, which is expected to drive demand for testing services [9][40]. - The company is strategically expanding its operations in the Yangtze River Delta region, aiming to increase its market share from 8% to 21% by 2024 [9][14]. Business Strategy - The "one body and two wings" strategy involves focusing on integrated circuit testing as the core business while expanding into wafer thinning and advanced imaging sensor technologies [9][14]. - The company has established production bases in Dongguan and Shanghai, enhancing its capacity and operational efficiency [9][19]. Financial Performance - The company reported a revenue of 4.4 billion yuan in the first three quarters of 2025, a 23.11% increase year-on-year, driven by improved demand from existing customers and new product launches [26]. - The report forecasts revenues of 6.3 billion yuan in 2025, 7.9 billion yuan in 2026, and 9.6 billion yuan in 2027, with corresponding price-to-sales ratios of 11, 9, and 7, respectively [1][26]. Competitive Landscape - The report highlights the competitive advantage of independent third-party testing firms like Liyang Chip, which can provide objective testing results compared to integrated packaging and testing companies [38][39]. - The company is well-positioned to benefit from the ongoing shift in the semiconductor industry, as it captures market share from traditional players [9][45].