Key takeaway

In 1H26, the company's revenue and net profit attributable to shareholders of the parent company increased by 82.33% and 91.92% YoY, respectively, while revenue and profit maintained rapid growth in 2Q26. Demand grew across key downstream sectors such as PCBs, new displays, and new energy. The company continued to expand its customer base and extend its coverage across inspection processes, while high-value-added technology products made a greater profit contribution. Revenue from new displays increased by 143.66% YoY, making it the fastest-growing downstream segment. The company continued to launch products including a 16K color TDI line-scan camera with an optical interface, a smart image acquisition card, a line spectral confocal sensor, and a color 2.5D imaging solution. It also advanced customer onboarding and validation among semiconductor inspection equipment manufacturers. As domestic substitution deepens, new products gradually ramp up, and application areas continue to expand, the company's growth momentum is expected to strengthen further.

Event

The company released its 2026 interim report. In 1H26, it recorded revenue of RMB378mn, up 82.33% YoY, and net profit attributable to shareholders of the parent company of RMB69mn, up 91.92% YoY. In 2Q26, the company recorded revenue of RMB231mn, up 74.72% YoY, and net profit attributable to shareholders of the parent company of RMB46mn, up 67.65% YoY.

Quick Take

Broad-based downstream demand drives rapid growth in the new display segment In 1H26, the company's electronic manufacturing, new display, new energy, and other industry segments generated revenue of RMB115mn, RMB109mn, RMB85mn, and RMB69mn, respectively, up 60.03%, 143.66%, 79.85%, and 58.60% YoY. They accounted for 30.45%, 28.90%, 22.45%, and 18.20% of total revenue, respectively. In electronic manufacturing, growing demand for high-end PCBs, capacity expansion by domestic manufacturers, and product upgrades drove rapid growth in TDI line-scan camera shipments. In new displays, faster commissioning of new generation 8.6 OLED and Micro LED capacity and the continued introduction of new products supported growth. In particular, the smart autofocus system fully achieved domestic substitution in front-end inspection processes. In new energy, the successful adoption of the 2.5D imaging system by a leading lithium battery customer boosted business revenue. Optimized product mix lifts gross margin, while share-based payments affect reported profit In 1H26, the company’s overall gross margin was 43.01%, up 1.85 pcts YoY, mainly driven by broader process coverage and higher profit contributions from products with high technological added value; the net margin attributable to shareholders of the parent company was 18.32%, up 0.92 pct YoY. The selling expense ratio, administrative expense ratio, and R&D expense ratio were 8.98%, 4.73%, and 10.74%, respectively, down 1.11 pcts, 1.69 pcts, and 1.10 pcts YoY. However, the corresponding expense amounts increased by 62.28%, 34.24%, and 65.41% YoY, respectively, mainly due to share-based payments and increased investment in R&D projects. In 1H26, net profit excluding the impact of share-based payments was RMB91mn, up 148.38% YoY. The actual improvement in the profitability of the company’s principal business exceeded the reported profit growth. Continued new product launches broaden application scope in semiconductors and industrial sensors The company launched a 16K color TDI line-scan camera with an optical interface to meet PCB inspection requirements for high speed, high resolution, and high color fidelity. It also released the CXP12-UD intelligent image acquisition card, which is suitable for complex inspection scenarios involving semiconductors, display panels, and lithium batteries. Its line spectral confocal sensor provides a 3D inspection solution for front-end lithium battery manufacturing. Its color 2.5D imaging solution has demonstrated application advantages in PCB, 3C electronics, and other scenarios. In the semiconductor sector, the company has established an inspection product portfolio comprising high-speed area-scan cameras, line-scan cameras, and intelligent autofocus systems. It has established partnerships with several leading domestic equipment manufacturers and continues to advance product qualification and adoption. In the biomedical sector, its high-resolution, high-order linescan cameras have been used in customers’ gene sequencers in volume production.

Higher inventory stocking and investment in fundraising projects continue to strengthen delivery assurance

To ensure the fulfillment of subsequent orders, the company increased purchases of core materials. In 1H26, net cash flow from operating activities was RMB-29mn, down RMB33mn YoY. Ending inventory was RMB167mn, up 50.18% from the beginning of the year, mainly due to reasonable inventory stocking to support sales growth.

The company continued to strengthen technical collaboration and capacity coordination with core suppliers and advance the domestic substitution of key materials. Construction in progress reached RMB302mn at the end of the period, up 37.37% from the beginning of the year, mainly due to increased investment in fundraising projects.

Investment recommendation : The company continues to deepen its presence in core components for highend machine vision and has established a comprehensive product portfolio comprising industrial cameras, image acquisition cards, and intelligent optical units. Driven by growing demand from the PCB, advanced display, and new energy sectors, along with gradual adoption in high-barrier fields such as semiconductors and biomedicine, the company is expected to further optimize its product mix and downstream applications. The company is expected to generate revenue of RMB707mn, RMB1,035mn, and RMB1,419mn in 2026–2028, up 60.60%, 46.36%, and 37.11% YoY, respectively. Net profit attributable to shareholders of the parent company is expected to reach RMB134mn, RMB222mn, and RMB324mn, up 109.83% , 65.69%, and 45.66% YoY, respectively,implying PE multiples of 93.72x, 56.56x, and 38.83x. We assign a “Buy” rating.

Risks

(1) Downstream capacity expansion and equipment demand may fall short of expectations: Slower-thanexpected capacity expansion and equipment demand in downstream industries such as PCBs, advanced displays, and new energy may affect the company’s product shipments and revenue growth.

(2) Expansion into new products and fields may fall short of expectations: The company’s new products and businesses in emerging fields such as semiconductors must undergo product validation, customer certification, and volume adoption. Slower-than-expected validation or market promotion may affect the company’s business expansion.

(3) Risk of intensifying market competition: The machine vision industry has many market participants. If the company’s product iteration, customer service, or market expansion falls short of expectations, its product pricing, market share, and profitability may be adversely affected.