CETC Instruments and Jingyi Equipment: How are AI testing and memory expansion driving equipment demand?

Why could AI create more testing opportunities for CETC Instruments?

Soochow Securities believes that AI development is raising requirements for testing precision and performance, while testing equipment is also penetrating mass production more rapidly from the R&D stage, creating incremental demand for electronic measurement instruments.
CETC Instruments covers microwave and millimeter-wave, optoelectronic, communications and basic measurement instruments. It can develop its own chips and RF components and integrate complete instruments, and can provide coordinated testing solutions using multiple instruments through its software platform. Its products have a long record of endorsement from universities and units affiliated with China Electronics Technology Group.

Product upgrades and portfolio optimization drove profit growth: from 2020 to 2025, net profit attributable to the parent rose from 120 million yuan to 440 million yuan, a compound annual growth rate of 30%.
In its initiation of coverage, Soochow Securities forecast net profit attributable to the parent of 500 million, 690 million and 890 million yuan respectively for 2026 through 2028, and expects the company to gain market share on the strength of its technology and product base. According to the forecast table, revenue growth in 2026 is 8.8%, below 16.89% in 2025, before an expected recovery to 28.21% in 2027.

Jingyi Equipment reported revenue of 1.49 billion yuan for the first three quarters, up 35.04% year over year; third-quarter revenue alone was 549 million yuan, up 48.95% year over year. Huaxi Securities believes the company has high market shares for relevant products in memory and advanced logic, and could benefit from downstream capacity expansion.
Chiller cooling equipment remains the main component of the company’s revenue. Huaxi Securities says the company is almost the sole supplier of chillers to leading domestic advanced logic and memory customers. At the end of the third quarter, inventory and contract liabilities stood at 2.951 billion yuan and 1.649 billion yuan respectively, up 25.61% and 73.38% year over year; analysts expect new orders received in the first three quarters to have grown strongly year over year.

The company has independently developed two series of dry vacuum pumps, and certain models have been sent to domestic integrated-circuit manufacturing lines for validation. Huaxi Securities views them as a potential second growth curve.
Taking into account a quarter-on-quarter improvement in gross margin and economies of scale, Huaxi Securities forecasts net profit attributable to the parent of 231 million, 409 million and 640 million yuan respectively for 2026 through 2028. By comparison, the company’s net profit attributable to the parent in 2025 was 148 million yuan, down 3.3% year over year; the brokerage forecasts gross margin to rise from 31.3% in 2026 to 33.3% in 2028.