New Stocks Preview | Jingshi Measurement and Control to list in Hong Kong: Positioned in high-growth track, with strong ability to withstand income fluctuations and profit.

China is transitioning from a "manufacturing country" to a "manufacturing power". In this context, more and more companies focusing on industrial manufacturing are becoming active in the capital market. According to the disclosure by the Hong Kong Stock Exchange on September 29th, Zhuhai Jingshi Measurement and Control Technology Co., Ltd. (hereinafter referred to as "Jingshi Measurement and Control") has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CICC and Pu Yin International as joint sponsors. The company is a provider of comprehensive solutions for flexible manufacturing technology and applications in the industrial and consumer fields, integrating measurement, control, and AI technologies. According to data from Zhiknowledge Consulting, based on 2024 revenue calculations, Jingshi Measurement and Control is the second largest provider of consumer electronics PCBA functional and performance testing equipment and services in China, and also one of the top ten intelligent measurement and control equipment and service comprehensive solution providers under the ODM model in China. So, with the strong promotion of intelligent manufacturing and Industry 4.0 by the country, what kind of development opportunities will Jingshi Measurement and Control's listing in Hong Kong bring? What is the company's investment value? Revenue fluctuation, strong profitability In the industrial field, Jingshi Measurement and Control has been focusing on measurement and control technology for over ten years, with research and development capabilities spanning from sensor data collection, algorithm analysis to equipment integration. At the same time, it has the capacity to deliver non-standard customized equipment and services on a large scale in fields such as consumer electronics, automobiles, and home appliances, providing customers with full-process measurement and control and process equipment, as well as value-added services for measurement and control data covering design, test verification, and mass production. Looking at the breakdown of revenue structure, GMTEight observes that the company has already formed a main growth curve with industrial-grade intelligent measurement and control equipment, and a business map with consumer-grade intelligent flexible manufacturing equipment and services as the "second growth curve". This business map clearly reflects the "depth" and "breadth" of Jingshi Measurement and Control's business layout. In terms of depth, it is rooted in the high-threshold field of semiconductor back-end testing; in terms of breadth, it has expanded from a technological platform to related electronic manufacturing scenarios, opening up the second growth curve. Through financial data, it seems that Jingshi Measurement and Control's strategic layout is not well reflected in the company's fundamentals at the moment. Specifically, the company's performance momentum came to a halt in the first half of 2025. According to the prospectus data, in the first half of 2025, the company achieved revenue of 203 million yuan, a year-on-year decrease of 29.9%; net profit also changed from profit to loss, -118 million yuan, compared to a net profit of 19 million yuan in the same period in 2024. Prior to this, the company's overall performance was in a fluctuating growth state - from 2022 to 2024, Jingshi Measurement and Control achieved revenues of 568 million yuan, 698 million yuan, and 863 million yuan, respectively, with year-on-year growth; net profits were 71 million yuan, 18 million yuan, and 60 million yuan respectively. From the contents disclosed in the prospectus, the decline in revenue in the first half of 2025 may be related to the decrease in revenue from online testing equipment, with this segment achieving revenue of 110 million yuan during the period, a significant decrease from 184 million yuan in the same period in 2024, and the revenue proportion also dropping from 63.4% in the same period in 2024 to 54.2%. Apart from the impact of the decline in revenue, the shift from profit to loss may also be related to the company's significant increase in research and development expenditures and the pains of product structure adjustments. In the first half of the year, the company's research and development expenditure accounted for 41.4% of revenue, much higher than the 16.8% for the entire year of 2024. The company introduced innovative solutions such as PRIME AI Agent and Smart Lab at CES 2025, with research and development investment mainly focusing on the integration of AI and measurement and control technology, which is beneficial for long-term competitive enhancement, but in the short term, it significantly erodes profits. At the same time, the company is transitioning from traditional testing equipment to industrial AI + flexible manufacturing, experiencing a mismatch between revenue and costs during the transition period for old and new businesses. Fluctuations in high-margin revenue from online testing equipment, and the fact that new solutions are still in the market cultivation stage, they have not yet contributed stable profits. Nevertheless, fortunately, Jingshi Measurement and Control's overall gross profit margin remains at a relatively high level, and its customer resources are relatively high-quality, which are bright spots in the company's fundamentals. According to the prospectus, from 2022 to 2024, Jingshi Measurement and Control recorded gross profit margins of 54.6%, 42.0%, and 43.2% respectively, remaining at a high level, which reflects its technological barriers and product competitiveness. In addition, the company's downstream customers include semiconductor packaging and testing companies, chip manufacturers, and electronics manufacturers, such as Unisoc, Amkor Technology, and others, which clearly demonstrates that its products have been recognized by industry-leading customers. Overall, while Jingshi Measurement and Control's performance in the first half of 2025 showed a downward trend, its profitability and customer resources still have some highlights. The industry is in a period of high-speed growth, and market competition is becoming increasingly fierce The core track of Jingshi Measurement and Control is in the field of industrial automation, with a focus on "machine vision" and "intelligent measurement and control", specifically applied to testing processes in high-end precision manufacturing such as lithium battery manufacturing and 3C electronics (consumer electronics). In terms of market potential, the track the company is in perfectly aligns with national strategies and core industry development trends, with clear and sustained market demand, and tremendous growth potential. Looking at it from a split perspective, under the wave of Industry 4.0, with the continuous progress of technologies such as the Internet of Things, big data, AI, and Siasun Robot&Automation, the increasing importance of improving manufacturing efficiency is becoming more crucial, and intelligent TMC equipment and services are rapidly moving towards a trillion-dollar market with rapid growth. Intelligent TMC equipment and services are defined as equipment and services that use advanced testing, measurement, and control technologies to carry out high-precision detection and dynamic control of physical quantities, parameters, and indicators in key stages of intelligent research and development and smart production in intelligent manufacturing. From 2020 to 2024, the global market size of intelligent TMC equipment and services grew from $52.3 billion to $136.2 billion, with a compound annual growth rate of 27.0%. The market is expected to grow at a compound annual growth rate of 17.7%, reaching $307.7 billion by 2029. As for the industry of intelligent consumer flexible manufacturing equipment and services, with technological upgrades and innovative production models, an increasing number of consumers are directly participating in product customization, and emotional value, personal expression, and niche cultures are driving consumption. The global industry of intelligent consumer flexible manufacturing equipment and services is rapidly developing. Intelligent consumer flexible manufacturing equipment and services are driven by an industrial model that meets the increasingly diverse and personalized consumer demands. From 2020 to 2024, the global market size of intelligent consumer flexible manufacturing equipment and services increased from $21.3 billion to $37.9 billion, with a compound annual growth rate of 15.5%, and the market is expected to grow at a compound annual growth rate of 20.2%, reaching $95 billion by 2029. Based on the above, it can be seen that Jingshi Measurement and Control is in two high-growth tracks, and this also means that the company has considerable growth potential in these two industries, presenting significant development opportunities for Jingshi Measurement and Control. However, it is important to note that high-profit and high-growth markets also tend to attract a large number of competitors. Jingshi Measurement and Control not only faces competition from international giants such as Hexacon, Keysight, but also from numerous domestic listed companies (such as Suzhou TZTEK Technology, Jutze Intelligence Technology) and startup companies in China. Market competition intensification may lead to price wars, squeezing profit margins, and even more fierce market competition. Additionally, downstream manufacturing technologies are constantly evolving (such as battery technology transitioning from winding to stacking, the emergence of CTC technology), posing higher and updated requirements on testing technology. Jingshi Measurement and Control undoubtedly faces significant technological iteration and research and development pressure, and the company must continuously invest substantial resources in research and development, keep up with, and even lead technological development, otherwise, there is a risk of being eliminated. In conclusion, Jingshi Measurement and Control is in a broad and high-speed development track, with its core advantages lying in deep technological barriers, precise focus on the golden track, and these advantages have led to rapid growth in the past few years. However, the company's future development also faces challenges such as industry cyclic fluctuations, intense market competition, etc. The key to its long-term development lies in its ability to sustain technological innovation, maintain technological leadership, withstand competitive pressure, and maintain or even enhance its profitability. Therefore, overall, Jingshi Measurement and Control can be seen as a typical "hidden champion" enterprise with core competitiveness in a segmented field, and its future development is highly related to the prosperity of the lithium battery industry, with opportunities and risks coexisting.