Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The semiconductor advanced process equipment is accelerating its delivery, and the display business is gradually recovering [3][8] - The company has a strong order backlog, with semiconductor equipment orders at approximately 1.82 billion RMB, showing a year-on-year increase of 3.2%, and display equipment orders at approximately 1.44 billion RMB, with a year-on-year increase of 38.7% [3] - The company is optimistic about the growth of its semiconductor business and the recovery of its display business, leading to maintained profit forecasts for 2025-2027 [3][8] Financial Summary - Total revenue for 2023 is projected at 2,429 million RMB, with a year-on-year decrease of 11.03%, but expected to grow to 3,356 million RMB in 2025, representing a year-on-year increase of 30.84% [1][9] - The net profit attributable to the parent company is expected to recover from a loss of 97.6 million RMB in 2024 to a profit of 219.7 million RMB in 2025, reflecting a significant year-on-year growth of 325.11% [1][9] - The company's earnings per share (EPS) is projected to improve from -0.35 RMB in 2024 to 0.79 RMB in 2025 [1][9] Operational Performance - In the first half of 2025, the company achieved a revenue of 1.381 billion RMB, a year-on-year increase of 23.2%, with the semiconductor detection business growing by 146.4% [3][8] - The gross margin for the first half of 2025 was 44.1%, with a slight year-on-year decrease of 1.0 percentage points, while the net margin improved by 3.5 percentage points to 7.4% [3][8] - The company reported a negative operating cash flow of 460 million RMB in the first half of 2025 [3]

Core Viewpoint - Zhongdao Optoelectronics has initiated the process for an IPO, focusing on semiconductor testing equipment, with technology spanning flat panel display, semiconductor, and photovoltaic testing fields [2][3]. Group 1: Company Overview - Zhongdao Optoelectronics, established in 2006, specializes in flat panel display and semiconductor wafer testing equipment, founded by a team of experienced overseas returnees [4]. - The company offers a complete product family in flat panel display testing equipment, achieving sub-micron level sensitivity, positioning itself as a key player in high-end detection solutions for the domestic flat panel display industry [4]. Group 2: Product Development and Achievements - The company has garnered attention from capital markets, with TCL Huaxing Optoelectronics being an early investor since 2014 [5]. - In early 2020, Zhongdao Optoelectronics successfully developed the first domestically produced 11th generation high-end measurement equipment, which was delivered to TCL Huaxing [5]. - The NanoPro-150, a nano-level defect detection device, was successfully delivered in 2022, with a sensitivity of up to 100nm, suitable for semiconductor chip manufacturing processes [5]. - In 2023, this device was again delivered for use in the production lines of leading domestic power semiconductor companies, achieving performance metrics comparable to top international products [5]. Group 3: Market Position and Recognition - Zhongdao Optoelectronics is recognized as a leading enterprise in the domestic semiconductor and semi-semiconductor front-end graphic defect detection equipment sector, classified as a "little giant" enterprise by the national "specialized, refined, and innovative" initiative [6]. - The company has a rich technical accumulation and complete independent intellectual property rights, with over 350 units of sub-micron and micron-level equipment sold and operating stably in numerous production lines over the past decade [6].

Group 1 - The company, Suzhou HYC Technology Co., Ltd., issued convertible bonds totaling RMB 800 million, with a net amount of RMB 787.92 million after deducting issuance costs [3][4][22] - The bonds have a maturity of six years, with an annual interest rate that increases from 0.30% in the first year to 2.00% in the sixth year [5][6] - The initial conversion price was set at RMB 39.33 per share, which has been adjusted down to RMB 26.19 per share due to market conditions [7][27] Group 2 - The company reported a decline in total assets by 5.45% to RMB 526.40 million and a decrease in net assets by 12.99% to RMB 342.40 million as of the end of 2024 [20][21] - The company's revenue for 2024 was RMB 182.26 million, a decrease of 2.07% compared to 2023, with a significant net loss of RMB 49.70 million [20][21] - Research and development expenses accounted for 21.62% of the company's revenue, indicating a strong focus on innovation [19] Group 3 - The company has established itself as a leading provider of industrial automation testing equipment and solutions, with products used in various sectors including LCD, OLED, and semiconductor industries [18][19] - The company has applied for a total of 304 intellectual property rights, with 261 approved, showcasing its commitment to innovation [19] - The company has successfully supplied testing equipment for humanoid robot controllers to overseas clients, indicating growth in its innovative business segment [19]