SBT(SH:688392)2025-09-08 04:10Summary of the Conference Call for Jiao Cheng Ultrasonic Company Overview - Jiao Cheng Ultrasonic has made significant progress in the semiconductor and automotive wiring harness sectors, entering leading domestic storage companies and successfully delivering 3D packaging equipment. The automotive wiring harness business is tied to major companies like BYD, providing new growth momentum for the company [2][4]. Core Business and Revenue Structure - The company's revenue structure is diversifying, with a decrease in the proportion of revenue from power batteries and an increase in semiconductor and consumables. By 2024, consumables are expected to account for over 30% of revenue, semiconductor revenue will reach 8-9%, and automotive wiring harness will exceed 14% [2][7]. - The main business of Jiao Cheng Ultrasonic involves the manufacturing of ultrasonic welding equipment. Despite challenges in the lithium battery sector, the company's performance has improved due to the restart of downstream expansion [3][10]. Financial Performance - In the first half of 2025, the company's profit increased nearly tenfold year-on-year, with a profit of approximately 60 million yuan. The main business has shown a clear turning point, and this growth trend is expected to continue into 2026 [11][21]. - The gross margin has remained high, consistently above 50% from 2018 to 2024, reaching over 60% in Q1 2025. The gross margin for consumables is particularly high, exceeding 70% [12][19]. Research and Development - The company has significantly increased its R&D investment, particularly in the semiconductor field, with nearly 300 R&D personnel, about 100 of whom focus on semiconductors. This investment has driven rapid development in the semiconductor business [9][32]. - Jiao Cheng Ultrasonic has a strong R&D team, primarily composed of graduates from Shanghai Jiao Tong University, providing a solid foundation for continuous innovation [8]. Market Trends and Future Outlook - The solid-state battery and 3D packaging technologies are identified as key growth drivers. The value of solid-state batteries has increased by over tenfold, and the market for 3D packaging ultrasonic scanning microscopes could reach 3-5 billion yuan [5][22]. - The semiconductor sector is expected to see a significant increase in orders, with new orders in 2025 reaching 200 million yuan, and potential for doubling growth in the coming years [5][32]. Competitive Advantages - Jiao Cheng Ultrasonic maintains a competitive edge over foreign companies in various segments, achieving gross margins of 48% in lithium battery equipment, 60% in automotive wiring harnesses, and 57% in semiconductors. This is attributed to in-house production of core components and a robust R&D team [16][34]. Emerging Business Areas - The company is expanding into new markets such as solid-state batteries and medical devices, with significant potential for growth. The medical device market is expected to exceed 10 billion yuan in scale by 2026 [6][33]. - The automotive wiring harness business is projected to grow significantly, with revenues expected to increase by 50% to 300% in 2025 compared to 2024 [20]. Overall Valuation and Growth Potential - The company is expected to achieve a total profit of over 200 million yuan in 2025, with projections for 300-400 million yuan in 2026. Given its unique business model and profitability, the company's valuation is expected to exceed that of its peers, potentially reaching a market cap of around 10 billion yuan [21][34].