Investment Rating - The report maintains a "Buy" rating for the company [8] Core Insights - The company has established a unique position in the display and semiconductor industry by integrating "display + IC + advanced packaging" capabilities, with a focus on high-generation mask production [1][2] - The demand for display masks is expected to increase due to the penetration of AMOLED technology and the localization of G8.6 IT-OLED production lines, which will enhance both volume and pricing [1][2] - The semiconductor market is recovering, and the company is expanding its production capacity in advanced packaging, which will further drive growth [3][4] Summary by Sections Company Overview - The company has evolved from film and chrome plates to a comprehensive platform covering G2.5 to G11, enhancing its production capabilities and market position [1][19] - The company is the only domestic manufacturer with a G11 production line, providing a competitive edge in high-generation and high-precision products [1][20] AMOLED and IT-OLED Development - The penetration of AMOLED technology is accelerating, particularly in smartphones and IT devices, leading to increased demand for display masks [41][43] - The G8.6 IT-OLED production lines are being established in China, which will further localize production and enhance the company's market presence [2][41] Semiconductor Market and Advanced Packaging - The global semiconductor market is entering a recovery phase, with increased demand for high-precision masks driven by advanced packaging trends [3][4] - The company is expanding its production lines for semiconductor masks, targeting 130-40nm processes, which will support its growth in this segment [4][5] Financial Forecast - Revenue projections for 2025-2027 are estimated at 11.64 billion, 15.69 billion, and 21.20 billion yuan, with corresponding net profits of 2.63 billion, 3.67 billion, and 5.14 billion yuan, reflecting strong growth rates [5][12] - The company's P/E ratios are projected to decrease from 34.32 in 2025 to 17.53 in 2027, indicating potential for value appreciation [5][12]

Core Viewpoint - The company, Hefei Qizhong Technology Co., Ltd., is a leading provider of advanced packaging and testing services for integrated circuits, maintaining a strong position in the industry through technological leadership and a solid customer base [1] Industry Overview - The display driver industry chain is shifting to mainland China, leading to rapid growth in domestic packaging and testing demand. In 2020, the market size for display driver chip packaging in mainland China reached 4.68 billion yuan, with a CAGR of 16% from 2016 to 2020 [2] - The penetration of AMOLED technology in smartphones, wearables, and tablets is driving incremental demand. The global AMOLED penetration rate is expected to rise from 18% in 2017 to 41% by 2024 [2] Company Positioning - The company offers comprehensive packaging services across various processes, including gold bump manufacturing and COG/COP/COF packaging, and has established a strong customer base including leading firms like Novatek and Etron Technology. The company is well-positioned to benefit from the domesticization trend in the industry [3] - The company is strategically targeting the high-growth AMOLED DDIC packaging segment, with projections indicating that revenue from AMOLED products will account for 20% of total revenue by 2024 [3] Non-Display Business Development - The company's non-display packaging services focus on power management and RF front-end chips, providing a complete solution for wafer-level chip-scale packaging. The projected revenue from non-display chip packaging is approximately 150 million yuan in 2024, reflecting a year-on-year growth of about 17% [4] Financial Projections - The company is expected to achieve revenues of 2.253 billion, 2.686 billion, and 3.042 billion yuan in 2025, 2026, and 2027, respectively, with corresponding net profits of 310 million, 410 million, and 520 million yuan. The projected EPS for these years are 0.26, 0.34, and 0.44 yuan, with PE ratios of 43.65, 33.54, and 26.21 based on the closing price on August 8, 2025 [5]