Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company is recognized as a leading third-party testing and analysis laboratory in the semiconductor industry, providing failure analysis, material analysis, and reliability analysis services, which are crucial for clients' R&D processes [4]. - In 2024, the company is projected to achieve revenue of 415 million yuan, with a compound annual growth rate (CAGR) of approximately 36% from 2020 to 2024 [4]. - The company has a strong focus on advanced process nodes, with revenue from advanced processes (28nm and below) increasing significantly over the years, indicating a growing market share [5]. - The semiconductor third-party testing and analysis market in China is expected to exceed 100 billion yuan by 2024, with a projected CAGR of over 10% until 2027 [6]. - The company is expanding its laboratory capabilities across multiple locations in China and has established a presence in Singapore to enhance its service offerings and collaboration with global semiconductor giants [6]. Financial Projections - The company is expected to generate revenues of 543 million yuan, 706 million yuan, and 919 million yuan in 2025, 2026, and 2027, respectively, with corresponding net profits of 110 million yuan, 161 million yuan, and 235 million yuan [8][10]. - The projected price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are 105, 72, and 49, respectively, indicating a favorable valuation trend as the company grows [8][10].

Core Viewpoint - Shengke Nano is a leading enterprise in the domestic semiconductor third-party testing and analysis field, with a strong growth trajectory and significant market potential in the semiconductor industry [3][8]. Company Overview - Shengke Nano's revenue is projected to grow from 120 million yuan in 2020 to 415 million yuan in 2024, with a compound annual growth rate (CAGR) of 36.2%. The net profit after deducting non-recurring items is expected to increase from 18.89 million yuan in 2020 to 72.66 million yuan in 2024 [3]. - The company has received investments from notable institutions such as Yida Capital, Fengnian Capital, Haitong Kaiyuan, Guoke Jiahe, and Yongxin Fangzhou [3]. Industry Trends - The semiconductor industry is shifting from the traditional IDM model to a Fabless+Foundry+OSAT model, leading to increased specialization and the emergence of independent third-party testing services [4]. - The global market for semiconductor third-party laboratory testing and analysis has surpassed 3 billion USD and is expected to reach 7.5 billion USD by 2028, with demand for testing services growing faster than the overall semiconductor market [6]. Market Position - Shengke Nano holds a market share of approximately 7.86% in the domestic market for failure analysis and materials analysis, with estimated revenues of 326 million yuan in 2023 [8]. - The company focuses on high-value segments such as failure analysis, which contributes significantly to its profitability, achieving a gross margin of 54.28% in 2023, higher than its competitors [9]. R&D and Innovation - Shengke Nano invests heavily in R&D, with a research expense ratio of 10.8% in 2023, significantly higher than its peers [10]. - The company has developed over 20 core technologies and holds numerous certifications, including CNAS and CMA, and has participated in national-level research projects [11]. Client Base - The company serves a range of prominent clients, including major chip design firms like Zhaoshengwei, Qualcomm, and Broadcom, as well as leading foundries and semiconductor equipment suppliers [12]. - Shengke Nano aims to enhance its testing and analysis capabilities through its IPO, focusing on expanding its service capacity in failure analysis, materials analysis, and reliability analysis [12].