Core Viewpoint - The report highlights Shenzhen Seichi Technologies Co., Ltd.'s performance in the first half of 2025, showcasing a revenue increase while facing a decline in net profit, indicating challenges in cost management and operational efficiency [4][15]. Financial Performance - The company achieved operating revenue of CNY 443.63 million, a year-on-year increase of 22.68% compared to CNY 361.60 million in the same period last year [4]. - The total profit for the period was CNY 27.95 million, representing a decrease of 34.94% from CNY 42.96 million in the previous year [4]. - The net profit attributable to shareholders was CNY 30.59 million, down 19.94% from CNY 38.21 million [4]. - The net cash flow from operating activities improved to -CNY 66.97 million, compared to -CNY 90.09 million in the previous year [4]. - The total assets increased by 5.57% to CNY 2.14 billion, while the net assets attributable to shareholders decreased by 2.33% to CNY 1.68 billion [4]. Business Overview - The company focuses on semiconductor testing and detection equipment, aiming for self-sufficiency in key devices and building a comprehensive service capability [5][6]. - The product line includes wafer testers, aging repair equipment, and high-speed final test machines, with a significant market presence in the domestic semiconductor testing equipment sector [6][7]. - The company has established stable business relationships with major semiconductor and display manufacturers, enhancing its competitive strength and market share [7][10]. Industry Trends - The semiconductor testing equipment industry is experiencing growth driven by advancements in technology and increasing demand for high-performance testing solutions, particularly in AI and advanced packaging technologies [10][14]. - The market for probe cards is expected to grow significantly, with a projected CAGR of 6.0% from 2018 to 2023, accelerating to 8.9% from 2024 to 2029 [10]. - The rise of AI and high-bandwidth memory (HBM) is pushing the demand for high-precision testing equipment, as the complexity of semiconductor devices increases [10][14]. - The micro-display technology is rapidly evolving, with significant growth in applications for AR/VR devices, creating new opportunities for domestic display testing equipment manufacturers [11][13].

Investment Rating - The report assigns a "Buy" rating for the company, with a first-time coverage [1]. Core Views - The company, Jingzhida (688627), is positioned as a leading domestic semiconductor testing and display inspection equipment provider, benefiting from the expansion of the storage industry and advancements in display technology [8]. - The semiconductor testing segment is expected to see significant growth, particularly in the HBM (High Bandwidth Memory) testing equipment, with a projected CAGR of 100% from 2025 to 2027 [8]. - The display inspection business is also anticipated to maintain a steady growth rate of 15%-20% in orders from 2025 to 2026, solidifying the company's performance [8]. - The company has established strong customer relationships with major clients like Changxin Storage and BOE, which enhances order visibility and growth potential [8]. Summary by Sections 1. Company Overview - Jingzhida has developed a comprehensive product matrix covering display inspection and semiconductor storage testing equipment, establishing itself as a leader in domestic substitution with unique offerings [36]. - The company has undergone three major development phases, transitioning from display testing to semiconductor testing, and has achieved significant milestones in both areas [13][14]. 2. Financial Performance - Revenue projections indicate a growth trajectory from CNY 648.56 million in 2023 to CNY 2,600 million by 2027, with a CAGR of 44.44% [1]. - The net profit is expected to rise from CNY 115.69 million in 2023 to CNY 521.66 million by 2027, reflecting a substantial increase in profitability [1]. - The report highlights a significant improvement in gross margins, particularly with the introduction of high-end products, which are expected to exceed 40% [8]. 3. Market Position and Competitive Advantage - The company has a strong foothold in the semiconductor testing market, having achieved full coverage of DRAM testing equipment and is actively expanding into HBM testing [8]. - The strategic collaboration with key clients and the ability to meet high-performance testing requirements positions the company favorably against international competitors [8]. - The report anticipates that the semiconductor equipment market will experience rapid growth, driven by the expansion plans of major storage manufacturers [53]. 4. Product Development and Innovation - The company is advancing its product offerings, with the first-generation CP testing machine expected to complete validation in 2025, and the second-generation machine targeting HBM applications [57][58]. - The introduction of self-developed ASIC chips enhances equipment performance and compatibility, aligning with industry standards [58]. - The report emphasizes the importance of technological advancements in maintaining competitive advantages in the rapidly evolving semiconductor market [8].