Where did third-quarter growth come from?

  • Strong One reported revenue of 1.055 billion yuan for the first three quarters, up 63.07% year on year; net profit was 372 million yuan, up 49.12% year on year.
  • In the third quarter alone, revenue was 431 million yuan, up 58.08% year on year and 27.16% quarter on quarter; net profit was 150 million yuan, up 34.10% year on year and 35.9% quarter on quarter. Net profit grew more slowly than revenue year on year.
  • Soochow Securities links the growth to global demand for AI computing-chip testing: orders for the company's 2D MEMS probe cards continue to ramp up, and the company is strengthening collaboration with key major customers on new product validation, order delivery and capacity assurance.

How far are memory products from large-scale delivery?

  • The company's 2.5D MEMS products now cover memory applications including NAND, NOR Flash, DRAM and HBM, and have been validated by multiple manufacturers; some customers have entered the small-batch delivery stage.
  • Since the third quarter, related volume orders have increased compared with the first half, and the products are moving from validation toward mass production. Soochow Securities sees memory chips as a medium-term source of incremental growth for these products.
  • Advanced process nodes and advanced packaging have increased testing complexity, supporting higher technological value added for probe cards; the company is also deepening customer collaboration in testing high-end computing chips such as GPUs and ASICs.

How much is being invested in capacity expansion, and when will capacity come online?

  • In the first three quarters, the company paid 1.019 billion yuan in cash for the purchase and construction of fixed assets and other assets, up 218.91% year on year; construction in progress stood at 470 million yuan at the end of September, up 58.77% from the beginning of the year, indicating a marked acceleration in capacity-expansion investment.
  • The new Hefei project is expected to be completed and put into operation in May 2027. Soochow Securities believes that once operational, the project could ease capacity bottlenecks and deliver economies of scale.