Advanced packaging and testing equipment demand recovery boosts Jinhai Tongye's performance to double, but why does the stock price unexpectedly hit the daily limit down?

The semiconductor testing and sorting equipment industry is experiencing significant growth, with Jinhaitong (603061.SH), a leading company in the sector, expected to see a substantial increase in performance by 2025. According to the latest financial disclosures, the company’s annual revenue reached 698 million yuan, a year-on-year increase of 71.68%; net profit attributable to shareholders of the parent company was 177 million yuan, up 124.93% year-on-year. To reward shareholders, the company plans to distribute a cash dividend of 3.8 yuan per 10 shares (tax included) and convert 4.5 shares per 10 shares from capital reserve.

The core driver of performance growth is the industry demand recovery. Jinhaitong’s main product, integrated circuit testing and sorting machines, is expected to see explosive demand in 2025. Among them, three-temperature testing and sorting machines and large platform multi-station equipment, which are suitable for large-scale complex testing scenarios, have become the main drivers of sales growth. The company’s total production of testing and sorting machines for the year reached 677 units, a year-on-year increase of 119.81%; sales volume was 539 units, up 61.86%. Although inventory levels rose to 307 units, operating cash flow net increased by 116.68% year-on-year to 128 million yuan, indicating steady improvement in operating quality.

Product structure optimization has significantly improved profitability. In 2025, Jinhaitong’s gross profit margin increased to 52.10%, up 4.94 percentage points from the previous year. Regionally, overseas markets contributed revenue of 85.93 million yuan, a year-on-year increase of 125.62%, but gross profit margin decreased by 5.34 percentage points. The company explained that the Malaysia production and operation center was put into use in the first half of 2025, aiming to strengthen global market responsiveness. The facility is still in the capacity ramp-up stage.

The industry’s continued prosperity is confirmed by multiple sources. Global testing equipment leader Advant predicts that driven by surging demand for AI/HPC chips and increased testing complexity, the global SoC testing machine market will expand to $8.5–9.5 billion in 2026, and the storage testing machine market will reach $2.2–2.7 billion. As supporting equipment for testing, the demand for sorting machines is expected to grow in tandem. Zhang Xiaorong, director of the Deep Technology Research Institute, pointed out that Jinhaitong’s high-end products precisely meet the incremental demand brought by the industry’s recovery.

Capacity expansion plans are progressing simultaneously. In February, Jinhaitong announced plans to invest up to 400 million yuan to build the Shanghai Lanbo Semiconductor Equipment Manufacturing Center. The project covers 30 acres, with a total construction area of no more than 55,000 square meters, integrating production, R&D, and office functions. According to the construction plan, 60% of the funds (about 240 million yuan) will be used in 2026 for land acquisition and main structure construction. Once operational, the project will significantly enhance comprehensive service capabilities in the Yangtze River Delta region.

In terms of capital operations, the company faces restrictions on share lock-up releases. On March 3, 18.17 million shares (accounting for 30.29% of total shares) held by controlling shareholder Cui Xuefeng, Long Bo, and Nantong Huahong Investment were unlocked. Shanghai Jinpuxin Emerging Industry Equity Investment Fund reduced its holdings by 598,900 shares through centralized bidding between October 2025 and January 2026, cashing out 105 million yuan. In the secondary market, the company’s stock price fell to the daily limit on the day after the earnings announcement (March 11), closing at 244.26 yuan per share, but the cumulative increase in 2026 still exceeds 70%, with the stock doubling over the past year.