Core Viewpoint - Zhongke Feicai, a leading manufacturer of integrated circuit testing equipment in China, was established on December 31, 2014, and went public on May 19, 2023, on the Shanghai Stock Exchange, breaking the long-standing monopoly of foreign manufacturers in the industry [1] Group 1: Business Performance - In Q3 2025, Zhongke Feicai reported revenue of 1.202 billion yuan, ranking 11th among 22 companies in the industry, with the industry leader, North Huachuang, generating 27.301 billion yuan [2] - The revenue composition includes 426 million yuan from testing equipment (60.72%), 256 million yuan from measurement equipment (36.40%), and 2.0378 million yuan from services and others (2.88%) [2] - The net profit for the same period was -14.6985 million yuan, placing the company 20th in the industry, while the industry leader reported a net profit of 4.98 billion yuan [2] Group 2: Financial Ratios - As of Q3 2025, Zhongke Feicai's debt-to-asset ratio was 51.02%, higher than the industry average of 35.23% [3] - The gross profit margin for Q3 2025 was 51.97%, exceeding the industry average of 38.42% [3] Group 3: Executive Compensation - Chairman Chen Lu's compensation increased from 4.0817 million yuan in 2023 to 5.2858 million yuan in 2024, an increase of 1.2041 million yuan [4] Group 4: Shareholder Information - As of September 30, 2025, the number of A-share shareholders increased by 40.11% to 13,700, with an average holding of 18,100 circulating A-shares, a decrease of 28.63% [5] Group 5: Growth and Projections - In H1 2025, Zhongke Feicai's revenue was 702 million yuan, a year-on-year increase of 51.39%, with a net profit of -18 million yuan, showing a significant reduction in losses [6][7] - The company expects revenues of 1.916 billion yuan, 2.680 billion yuan, and 3.444 billion yuan for 2025, 2026, and 2027, respectively, with corresponding net profits projected at 219 million yuan, 391 million yuan, and 594 million yuan [7]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company has shown rapid revenue growth, with a projected revenue of 19.16 billion, 26.80 billion, and 34.44 billion for the years 2025 to 2027 respectively, while the net profit is expected to reach 2.19 billion, 3.91 billion, and 5.94 billion in the same period [9] - The company has received government subsidies amounting to 1.25 million, and its revenue for the first half of the year was 702 million, reflecting a year-on-year growth of 51.39% [9] - The company has successfully delivered over 300 units of its main product, the non-patterned wafer defect detection equipment, and has seen an increase in market share [9] - The development of nano-patterned wafer defect detection equipment is progressing steadily, with prototypes already shipped to leading customers for validation [9] - The company is accelerating the promotion of its analysis and classification system products, enhancing its software ecosystem [9] Financial Performance - Revenue for 2023 is reported at 891 million, with a growth rate of 74.9%, and is expected to grow to 1.38 billion in 2024 and 1.92 billion in 2025 [7][10] - The net profit for 2023 is 140 million, with a significant increase projected to 219 million in 2025 and 391 million in 2026 [7][10] - The earnings per share (EPS) is expected to improve from 0.49 in 2023 to 0.68 in 2025 and 1.22 in 2026 [7][10] - The price-to-earnings (PE) ratio is projected to decrease from 151.9 in 2023 to 146.4 in 2025 and further to 81.9 in 2026 [7][10] Market Performance - The company's stock has shown a performance of -6% compared to the market index, while the market index (CSI 300) has shown a performance of 21% [4]

Investment Rating - The investment rating for the company is "Buy-A" with a target price of 103.02 CNY per share, maintaining the rating [6]. Core Viewpoints - The company has achieved significant revenue growth driven by technological breakthroughs and accelerated domestic substitution demand, leading to an expansion of its customer base and order volume. Although the company has not yet turned a profit, the loss margin has narrowed significantly year-on-year [2][9]. - The company has increased its R&D investment and implemented equity incentives, which have led to higher share-based payment expenses, putting some pressure on short-term profits. The overall gross margin for H1 2025 was 54.31%, an increase of 8.08 percentage points year-on-year [2][9]. - The company has successfully mass-produced seven major devices and has established a complete yield management solution with nine series of equipment and three series of software, meeting the needs of leading domestic customers [3][4]. Financial Performance Summary - In H1 2025, the company achieved operating revenue of 702 million CNY, a year-on-year increase of 51.39%. The net profit attributable to the parent company was a loss of 18 million CNY, a year-on-year reduction in loss of 73.01% [1][2]. - For Q2 2025, the company reported operating revenue of 408 million CNY, a year-on-year increase of 78.73%, with a net profit loss of 3 million CNY, a year-on-year reduction in loss of 96.68% [1][2]. - The company expects revenues of 2.071 billion CNY, 3.023 billion CNY, and 4.202 billion CNY for the years 2025, 2026, and 2027, respectively, with net profits of 249 million CNY, 453 million CNY, and 636 million CNY for the same years [9][11].