Leadyo(SH:688135) Great Wall Securities·2024-02-28 16:00Investment Rating - The report upgrades the investment rating to "Buy" for the company, indicating an expected stock price increase of over 15% relative to the industry index in the next six months [23]. Core Insights - The company achieved a record high revenue of 503 million yuan in 2023, with a year-on-year growth of 11.19%. However, the net profit attributable to the parent company decreased by 32.37% to 22 million yuan [12][16]. - The company is focusing on expanding its mid-to-high-end testing capacity, particularly in the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta region, which is expected to enhance its market position and core competitiveness [12][16]. - The company emphasizes continuous innovation in integrated circuit testing technology, with R&D expenses reaching 75 million yuan, accounting for 14.94% of revenue [2][16]. Financial Summary - Revenue is projected to grow from 503 million yuan in 2023 to 802 million yuan by 2025, with a compound annual growth rate (CAGR) of approximately 25.7% [1]. - The net profit is expected to recover to 101 million yuan by 2025, following a dip to 22 million yuan in 2023 [1][16]. - The company's return on equity (ROE) is forecasted to improve from 2.0% in 2023 to 8.5% by 2025 [1]. Operational Developments - The company has successfully completed the debugging of several advanced wafer processing technologies, which are set to enter mass production, enhancing its service capabilities [13]. - The company is strategically positioning itself in emerging markets such as automotive electronics, industrial control, and high-performance computing [26].