Suzhou HYC Technology Co., Ltd. (HYC Technology) (688001)

Equity Research Report | Industry: Industrial Automation Test Equipment and Specialized Equipment | Report Date: September 13, 2026 | Data Cut-off: Closing price on September 11, 2026; next trading day: September 14, 2026. Market data was primarily cross-checked against the Investing, ET Net and Sina Finance pages cited in the research notes.

This report was automatically compiled by AI based on publicly available information and is for reference only; it does not constitute investment advice.

1. Executive Summary

HYC Technology's latest operating performance indicates a recovery trend: in the first half of 2026, the company generated revenue of RMB 1.134 billion, up 23.91% year on year, attributable net profit of RMB 94.8896 million, up 20.85%, and non-GAAP attributable net profit growth of 13.11%. However, profits were concentrated mainly in the second quarter, with significant quarterly earnings volatility. The company's current valuation is also high, and short-term share-price volatility risk is prominent. As of September 11, 2026, the share price was RMB 62.31, with a trailing P/E ratio of approximately 346x. After a rapid earlier rise, the stock had begun to retreat from its highs.

The company primarily develops industrial automation test equipment and complete-line systems, covering flat-panel displays, smart wearables, semiconductors and automotive electronics. Its products are highly customized. In the first half of 2026, revenue from test equipment and fixtures and accessories together accounted for approximately 95.25% of core business revenue, indicating that current growth remains primarily reliant on the core testing-equipment business. R&D investment was approximately RMB 158 million, representing approximately 13.93% of revenue, while net cash flow from operating activities was approximately RMB 78.4196 million, a significant improvement from the same period last year.

Medium- to long-term growth drivers include a recovery in display and consumer-electronics testing demand, expansion into semiconductor and automotive-electronics testing, and business extension into optoelectronic and power-semiconductor testing following the acquisition of control of Wuhan Pusaisi. The company has completed the acquisition of a 39% stake in Pusaisi and brought it under its control, but integration remains ongoing. Synergies, revenue and profit contributions, and integration costs still require further validation.

The company also faces relatively significant capital-occupation and customer-concentration issues. At the end of 2025, net accounts receivable were approximately RMB 1.596 billion and inventories approximately RMB 884 million, together equivalent to approximately 110.8% of 2025 revenue. The top five customers accounted for 49.17% of sales, significantly higher than the 13.28% share represented by the top five suppliers. Technically, the share price remained above the MA10 and MA20 but was slightly below the MA5; the RSI was close to 70, while net institutional-fund outflows were approximately RMB 126 million on September 11. The stock was therefore in a phase of high-level consolidation with increasing pullback pressure.

2. Company Overview

2.1 Basic Information

2.2 Core Businesses and Product Portfolio

• Flat-Panel Display (FPD) business: Provides display, touch, signal, optical, reliability, aging, defect-detection and repair equipment for LCD, OLED, Micro OLED, Micro LED, Mini LED and automotive display panels.
• Smart Wearable Devices (SWD) business: Provides screen and sensor inspection, acoustic testing, air-tightness testing, functional testing, process inspection and automated assembly equipment for smartwatches, wireless earphones, AR/VR and other consumer-electronics products.
• Semiconductor (SEMI) business: Provides testers, handlers, AOI equipment, wafer-defect inspection equipment, BMS inspection equipment and related consumables for SoC, CIS, BMS, RF and SiP advanced-packaging products.
• Automotive (EVE) business: Focuses on new-energy vehicles and automotive electronics, covering electric-drive systems, automotive electronic components, BMS and related testing fixtures, thermal management, advanced driver assistance, intelligent cockpits and controllers.
• Other and incubating businesses: Includes technical services, operations and maintenance commissioning, equipment repairs, inspections, maintenance and new-business incubation.
• According to the accounting revenue classification in the 2025 annual report, core products include inspection equipment, fixtures and accessories, assembly equipment and other businesses. This classification does not fully correspond to the product structure on the company's website, which is organized by business unit and application scenario.

2.3 Position in the Value Chain and Cost-Profit Structure

HYC Technology operates in the middle of the industrial automation and electronics manufacturing equipment value chain, acting as a specialized test-equipment, automation-equipment and complete-line systems integrator. The company's value is primarily derived from test-solution design, optical and image-processing algorithms, electronic testing platforms and boards, precision machinery and automation controls, software systems, customer certification, volume-production delivery, equipment upgrades and after-sales services.

• Major procurement items include mechanical components, electrical and electronic components, automotive-electronics materials, electronic components and assemblies, processed parts, and materials related to fixtures and accessories. Specific products also involve precision-machined parts, motion-control components, industrial cameras, optical components, sensors, controllers, test boards and high-precision connectors.
• The 2025 product-level cost structure shows that raw-material costs for inspection equipment were RMB 486 million, representing approximately 40.47% of the company's total operating costs; raw-material costs for fixtures and accessories were RMB 412 million, or approximately 34.26%; raw-material costs for assembly equipment were RMB 34.84 million, or approximately 2.90%; and raw-material costs for other businesses were RMB 20.73 million, or approximately 1.73%. Raw materials remain the primary cost item.
• As of December 31, 2025, purchases from the top five suppliers totaled RMB 161 million, representing 13.28% of annual purchases. No single supplier accounted for more than 50% of purchases. Supplier-concentration data is sourced from the company's 2025 annual report.
• Among the top five suppliers in 2025, purchases from Guangzhou Silin Jieda Technology Co., Ltd. totaled RMB 23.9408 million, representing 1.98%; purchases from Intron Technology (China) Limited totaled RMB 21.5087 million, representing 1.78%; and purchases from Suzhou Xinjiete Precision Machinery Co., Ltd. totaled RMB 18.4468 million, representing 1.52%. Two other suppliers were disclosed anonymously, with the largest and second-largest suppliers accounting for 5.94% and 2.06%, respectively.
• For standardized or semi-standardized components such as mechanical parts and electrical and electronic components, the company is generally closer to a price taker. Some components and processed parts can be sourced from multiple suppliers, and the company can reduce costs through advance procurement, supplier management and design optimization. However, once project quotations have been determined, increases in raw-material prices may not be passed on to customers promptly.
• Imported raw materials are primarily settled in Japanese yen, while exported products are mainly settled in U.S. dollars. Exchange-rate movements may affect profits through procurement costs and revenue translation.
• Downstream customers primarily include flat-panel display and module manufacturers, IC design companies, wafer manufacturers and packaging and testing providers, consumer-electronics brands and their supply-chain companies, and new-energy vehicle and automotive-electronics companies.
• The company has long served Apple's supply chain and has disclosed that it has been an Apple-designated supplier of mobile-phone screen inspection equipment since 2013. It has also disclosed that its flat-panel display inspection products have been recognized by well-known overseas customers including Apple, Samsung and LG. However, customer names were anonymized in the 2025 annual report, so anonymous customers cannot be individually matched to specific end brands on this basis.
• As of December 31, 2025, sales to the top five customers totaled RMB 1.101 billion, accounting for 49.17% of annual sales. Sales to the largest customer were RMB 334 million, or 14.91%; sales to the second-largest customer were RMB 255 million, or 11.39%; and the third- to fifth-largest customers accounted for 7.75%, 7.70% and 7.44%, respectively. These figures are sourced from the company's 2025 annual report. Customer names were anonymized, and the research notes did not externally map anonymous customers individually. The latest annual report should be taken as authoritative.
• Downstream customers are mostly large display, consumer-electronics, semiconductor and automotive companies. They have large procurement volumes, lengthy certification processes and stringent requirements for equipment stability and delivery schedules, giving them relatively strong purchasing bargaining power.
• The company's products are primarily customized projects, with prices generally determined at the initial project stage. During product introduction, process upgrades and mass production, customers may require equipment optimization, price reductions or additional services, creating pressure on project pricing and service costs.
• Once equipment enters a customer's production line and passes validation, model changes, upgrades, fixture replacements and maintenance may generate recurring revenue. However, order timing remains materially affected by capital expenditure by display and semiconductor manufacturers, new-product cycles in consumer electronics and capacity investment in new-energy vehicles.
• The company has some bargaining power based on customer relationships, technical certification, product understanding and delivery capabilities. However, when dealing with Apple's supply chain, leading display manufacturers and large semiconductor manufacturers, it remains in a relatively weak supplier bargaining position overall.
• As of December 31, 2025, the carrying amount of net accounts receivable was RMB 1.596 billion, equivalent to approximately 71.3% of 2025 revenue of RMB 2.240 billion. The carrying value of inventories was RMB 884 million, equivalent to approximately 39.5% of revenue. Accounts receivable and inventories together were equivalent to approximately 110.8% of revenue. The company's operating model is primarily “make-to-order and stock-to-production,” although it may procure or stock materials in advance based on customer order plans. These figures indicate that capital occupation in the value chain is mainly on the downstream customer side, while the company bears significant accounts-receivable and inventory pressure. The research notes did not provide specific data on accounts-receivable turnover days, accounts payable or prepayments.
• In 2025, the top five customers accounted for 49.17% of sales, materially above the 13.28% share represented by the top five suppliers, indicating greater reliance on a small number of large customers on the sales side. Customer names were disclosed anonymously, and their corresponding end brands cannot be individually confirmed from the 2025 annual report. The concentration data comes from a single source and should be verified against the latest annual report.

HYC Technology operates in a midstream but relatively high-value-added specialized-equipment segment. It is neither an upstream resource company nor a downstream enterprise with end-brand pricing power. Its profitability is higher than that of ordinary machinery-processing companies, but it lacks sufficient pricing power for standard and semi-standard components and has relatively high downstream customer concentration. Future profit improvement will mainly depend on increasing the contribution of semiconductor, automotive-electronics and high-end display-testing businesses; raising the proportion of revenue from software, algorithms, testing platforms and core modules; improving the reuse of standardized platforms and fixtures; controlling project costs; improving fixed-asset utilization; and increasing accounts-receivable and inventory turnover efficiency.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest periodic financial report is the 2026 Semiannual Report, covering the period ended June 30, 2026, and disclosed on August 29, 2026. The 2025 figures are unaudited preliminary results; final figures should be based on the audited 2025 annual report. Second-quarter 2026 figures are estimated by subtracting first-quarter figures from first-half figures.

In the first half of 2026, both revenue and attributable net profit increased by more than 20% year on year. Inspection-equipment revenue was approximately RMB 620.18 million and fixture and accessory revenue approximately RMB 460.02 million, together accounting for approximately 95.25% of core business revenue. Domestic revenue was approximately RMB 684.17 million and overseas revenue approximately RMB 449.63 million. R&D investment was approximately RMB 158 million, or approximately 13.93% of revenue. Net cash flow from operating activities was approximately RMB 78.4196 million, a significant improvement from the same period last year. Non-GAAP attributable net profit was RMB 84.2830 million, up 13.11%, below the growth rate of attributable net profit. Profits were also concentrated mainly in the second quarter, with significant quarter-to-quarter earnings volatility; the impact of non-recurring items, investment income and revenue-recognition timing requires attention.

3.2 Earnings Forecasts

The above forecasts come from an equity research event commentary report published by Huaxin Securities on September 11, 2026. They represent a single-broker forecast rather than a multi-broker consensus. The report did not disclose corresponding annual net-profit forecasts. Based on the report, revenue is expected to increase from RMB 2.990 billion in 2026 to RMB 4.464 billion in 2028, representing cumulative growth of approximately 49% over three years. Delivery of these forecasts depends on order ramp-up in semiconductor testing, optoelectronic testing and consumer-electronics customers.

3.3 Valuation and Institutional Ratings

As of September 11, 2026, the share price was approximately RMB 62.31 and total shares outstanding were approximately 472 million, implying a rough market capitalization of approximately RMB 29.38 billion. Caizhongshe recorded a P/E ratio of approximately 308.30x and a non-GAAP P/E ratio of approximately 512.41x. As of September 7, 2026, Lixinger recorded a PE-TTM of 284.83x, while other pages showed a dynamic P/E ratio of approximately 315.83x as of September 10. Differences among platforms reflect differences in share price, TTM earnings, whether non-GAAP figures are used and data-update timing. Nevertheless, all indicate a high current valuation. Lixinger data showed a P/B ratio of approximately 6.42x to 7.11x. Using net assets per share of RMB 9.13 from the 2026 Semiannual Report and a share price of RMB 62.31, the rough P/B ratio is approximately 6.82x. Based on Huaxin Securities' forecasts, forward P/E ratios for 2026–2028 are approximately 136.2x, 89.0x and 60.9x, respectively. Even using the 2028 EPS forecast of RMB 1.09, forward P/E remains approximately 60x, indicating that the market has already priced in relatively substantial growth over the next several years. Key valuation risks include weaker-than-expected order ramp-up in semiconductor and optoelectronic testing, volatility in consumer-electronics capital expenditure, customer concentration, accounts-receivable collection, quarterly earnings volatility and downward revisions to earnings forecasts.

4. Recent News and Announcements

4.1 Abnormal Share-Price Volatility: Company Denies Undisclosed Material Matters and Warns of High Valuation Risk

HYC Technology disclosed an announcement regarding abnormal share-price volatility on September 10, 2026. The cumulative deviation in the closing price over the three consecutive trading days from September 7 to September 9 reached 30%. The company stated that its ordinary operations were normal, with no material changes in the market environment or industry policies, and that product R&D and commercialization preparations were progressing normally. The controlling shareholder and actual controller had no undisclosed material matters such as mergers and acquisitions, share issuance, debt restructuring, business restructuring, asset disposals or asset injections. Relevant directors, senior executives, the controlling shareholder and the actual controller did not trade the company's shares during the period of abnormal volatility. The company warned that, as of September 8, 2026, its rolling P/E ratio was 298.52x, compared with a 45.03x average rolling P/E ratio for the specialized equipment manufacturing industry over the past month, indicating relatively high valuation and short-term share-price volatility risk. The acquisition of Pusaisi had completed its industrial and commercial registration changes but remained under ongoing integration. Source: Sina Finance announcement, link: https://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?id=12592318&stockid=688001

4.2 First-Half 2026 Profit Distribution: Cash Dividend of RMB 0.21 per 10 Shares

The company disclosed an implementation announcement for its first-half 2026 equity distribution on September 12, 2026. The company will pay a cash dividend of RMB 0.21 per 10 shares, equivalent to RMB 0.021 per share. No capitalization of capital reserves or bonus shares will be issued. The record date is September 17, 2026, and both the ex-dividend date and cash-dividend payment date are September 18, 2026. As of the announcement date, the company had total share capital of 471,565,619 shares. After deducting the 649,801 shares held in the repurchase-specific securities account, the share capital eligible for distribution was 470,915,818 shares. Total cash dividends are expected to be RMB 9.8892 million, including tax. Shares held in the repurchase-specific securities account will not participate in this profit distribution. Source: Sina Finance announcement, link: https://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?id=12597675&stockid=688001

4.3 Completed Acquisition of 39% of Wuhan Pusaisi, Raising Ownership to 51%

HYC Technology disclosed an announcement on July 22, 2026, regarding progress under the equity acquisition agreement and completion of the industrial and commercial registration changes. The company previously held a 12% stake in Wuhan Pusaisi Electronics Co., Ltd. In April 2026, it signed an agreement to acquire an additional 39% stake in Pusaisi for cash consideration of RMB 206.16 million. Upon completion, the company held 51% of Pusaisi, making Pusaisi a controlled subsidiary of HYC Technology and bringing it into the consolidated financial statements. As of July 22, 2026, the company had paid the acquisition consideration in two installments: RMB 54.376 million in the first installment and RMB 110.552 million in the second. Pusaisi had completed the industrial and commercial registration changes, and the company had completed changes to its board appointments and filings relating to the legal representative and articles of association. Pusaisi is primarily engaged in the production and sale of testing instruments and equipment for optoelectronic and power semiconductors. Source: CNINFO, link: https://static.cninfo.com.cn/finalpage/2026-07-22/1225434650.PDF

4.4 Pusaisi Acquisition Remains Under Ongoing Integration, with Synergy Uncertainty

In its September 10, 2026 announcement on abnormal share-price volatility, the company stated that although the Pusaisi acquisition had completed the industrial and commercial registration changes, it remained under ongoing integration. Attention should be paid to Pusaisi's revenue, profit and cash-flow contribution after consolidation; synergies in customers, R&D, supply chains and sales channels; post-acquisition management and business-integration costs; and intensifying competition in optoelectronic and power-semiconductor testing equipment. The company's 2026 Semiannual Report disclosed that, as of the reporting date, it had invested RMB 124.6866 million in Pusaisi. As of the disclosure date of the semiannual report, the company's registered ownership percentage had changed to 51%, bringing Pusaisi under its control.

4.5 First-Half 2026 Results Continued to Grow, with No New Full-Year Guidance

The company disclosed its 2026 Semiannual Report on August 29, 2026. Revenue in the first half of 2026 was approximately RMB 1.134 billion, up 23.91% year on year; net profit attributable to shareholders of the listed company was approximately RMB 94.8896 million, up 20.85%; and non-GAAP net profit attributable to shareholders of the listed company was approximately RMB 84.00 million, up 13.11%. The proposed first-half 2026 cash dividend of approximately RMB 9.8892 million represented approximately 10.42% of first-half attributable net profit. As of September 13, 2026, no new earnings forecast, earnings-forecast revision or clear full-year earnings guidance for the third quarter or full year of 2026 had been identified. The above semiannual figures are disclosed actual operating results, not forward earnings forecasts. Source: Sina Finance announcement, link: https://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?id=12566810&stockid=688001; announcement search link: https://www.lixinger.com/equity/company/detail/sh/688001/688001/announcement?type=all

4.6 Share-Reduction Plan for Repurchased Shares Expired Without Implementation; Repurchase Account Still Holds 649,801 Shares

The company disclosed an announcement on July 23, 2026, regarding the outcome of the expiration of the period for reducing shares held in its repurchase account. Previously, the company planned to reduce no more than 434,946 repurchased shares through centralized bidding between January 23 and July 22, 2026, equivalent to approximately 0.0922% of its then-total share capital. As of July 22, the reduction period had expired, and the company had not reduced or transferred any of the relevant shares, primarily to protect investor interests and strengthen market confidence. The repurchase-specific securities account held 649,801 shares, and the reduction plan did not specify a minimum reduction quantity. Source: CNINFO, link: https://static.cninfo.com.cn/finalpage/2026-07-23/1225437369.PDF

4.7 No Trading by Core Shareholders or Management During the Abnormal-Volatility Period

In its September 10, 2026 announcement on abnormal share-price volatility, the company disclosed that its directors, senior executives, controlling shareholder and actual controller had not traded the company's shares during the period of abnormal volatility. As of the disclosure date, no announcements had been identified indicating that core management or the actual controller had used the short-term share-price movement to increase or reduce their holdings. Source: Sina Finance announcement, link: https://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?id=12592318&stockid=688001

4.8 No New Regulatory Penalties, Material Inquiries or Acquisition Plans Identified as of September 13, 2026

As of September 13, 2026, no new regulatory penalties, disciplinary actions, regulatory measures or exchange inquiry announcements involving HYC Technology in September 2026 had been identified. The announcement on abnormal share-price volatility disclosed on September 10 was a risk-warning announcement required under exchange rules and did not indicate that the company had been penalized or had engaged in violations. The company had also not announced any new material merger and acquisition, asset-injection or business-restructuring plan. The main recently announced material acquisition remains the acquisition of 39% of Pusaisi in April 2026, with the industrial and commercial registration changes completed in July 2026. These conclusions are based on publicly available announcements searchable as of the cut-off date and do not exclude subsequent announcements or matters not yet publicly disclosed.

5. Share-Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, HYC Technology's share price had retreated for two consecutive days following a rapid rise from September 4 to 9, showing high short-term volatility and pressure from profit-taking. The latest closing price was slightly below the MA5 but remained well above the MA10 and MA20. RSI(14) was close to 70, and the share price was above the Bollinger middle band and close to the upper band. The technical setup remained relatively strong, although signs of cooling short-term momentum had emerged. Net institutional-fund outflow was approximately RMB 126 million on September 11, and the margin balance represented approximately 2.25% of circulating market capitalization, warranting attention to volatility potentially amplified by leveraged funds. The complete MACD value as of that date could not be verified, so no directional judgment is made.

5.3 Short-Term Outlook (Next Week; Scenario Analysis for Reference Only)

⚠️ Risk warning: The following is a subjective scenario analysis based on closing data as of September 11, 2026. It does not constitute investment advice or a single-point price forecast. Scenario weights are subjective heuristic judgments based on the current technical setup and fund flows, not statistical probabilities.

① Key Technical Levels

② Scenarios for the Coming Week (Subjective Weights, Not Statistical Probabilities)

• High-level consolidation (relatively higher weighting, approximately 50%–60%; subjective heuristic weighting, not a statistical probability): Observation range of approximately RMB 58–66. Trigger conditions include holding around RMB 60 without an effective break below the RMB 55–58 support zone, turnover remaining approximately RMB 800 million–1.2 billion without sustained high-volume declines, and repeated pressure around RMB 65–68 while the abnormal-volatility announcement and earlier rapid rise are digested.
• Weak downward move (medium weighting, approximately 30%; subjective heuristic weighting, not a statistical probability): Observation range of approximately RMB 48–56. Trigger conditions include an effective break below RMB 60 followed by a break below the RMB 55–58 support zone, continued net institutional-fund outflows, daily turnover on declines expanding consistently to more than RMB 1.2–1.5 billion, simultaneous weakness in the STAR Market or semiconductor test-equipment sectors, and clear deleveraging pressure from margin-financing investors. If the stock breaks below the MA20 at approximately RMB 55.15, the RMB 48–52 area and the Bollinger lower band near RMB 45.1 may be monitored.
• Rebound and strengthening (relatively lower weighting, approximately 20%; subjective heuristic weighting, not a statistical probability): Observation range of approximately RMB 66–72. Trigger conditions include regaining RMB 65–66 and effectively breaking above the September 9 high of RMB 67.88, daily turnover expanding again to above RMB 1.5 billion, rising-day volume materially exceeding the recent average, institutional funds shifting from net outflows to consecutive net inflows, sector-wide resonance in the STAR Market and semiconductor-testing and optoelectronic-testing themes, and no new risk warnings in subsequent company announcements or industry catalysts. As RSI(14) is already close to 70 and the stock had risen sharply in the short term, any breakout would still require monitoring for a retreat from the highs and price-volume divergence.

③ Fund-Flow and Liquidity Background

As of September 11, 2026, the turnover rate was approximately 3.67%, above 2.44% on September 10 but below 5.31% on September 8 and 4.10% on September 7. Turnover value over the latest five trading days was approximately RMB 751 million–1.530 billion, and volume on September 11 was approximately 17.32 million shares, above the three-month daily average of approximately 10.96 million shares. The top-ten tradable-shareholder and institutional-ownership data are based on the interim-report date of June 30, 2026. The top ten tradable shareholders collectively held approximately 78.11%, although the actual ownership structure may have changed. Public funds and QFII accounted for relatively limited proportions, while other institutions represented a large share. The margin balance represented approximately 2.25% of circulating market capitalization, indicating relatively high participation by leveraged funds that could amplify short-term volatility. These figures indicate relatively active recent trading but cautious fund flows. The key point to monitor is whether a breakout of resistance receives confirmation from both turnover and institutional fund flows.

If daily turnover subsequently remains above RMB 1.5 billion, the closing price regains the RMB 65.2–67.9 resistance zone, and institutional funds no longer show significant net outflows, this could be viewed as a signal that short-term fund strength is returning. If turnover expands while the share price continues to break below RMB 60 or even RMB 55, the setup would be closer to a high-volume distribution or high-level turnover-risk signal.

④ Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Observe whether the RMB 60.3–62.5 area provides short-term support and whether the share price can regain the MA5.
• Observe whether the RMB 55.1–58.3 area holds the MA20 and recent breakout platform; if it fails, continue monitoring RMB 48–52 and the Bollinger lower band near RMB 45.1.
• Observe whether the RMB 65.2–67.9 resistance zone can be effectively broken with turnover above RMB 1.5 billion and no significant institutional net outflows.
• Observe whether the approximately RMB 126 million net institutional outflow on September 11, 2026 turns into consecutive net inflows, and monitor changes in price-volume behavior and margin pressure against the backdrop of the relatively high margin balance. All of the above are observation frameworks, not trading instructions.

The above scenario analysis is based on closing data as of September 11, 2026, and calculations using historical prices and technical indicators. Short-term share prices may also be affected by news, fund flows, the broader market and other factors. Technical indicators have inherent lags and limitations. This does not guarantee future actual performance or constitute a buy or sell recommendation. Investors should independently assess the latest market information and bear investment risks themselves.

6. Industry Landscape and Competitor Analysis

6.1 Industry Overview

HYC Technology spans industrial automation test equipment, flat-panel display inspection, consumer-electronics assembly and testing, semiconductor test equipment, automotive-electronics and new-energy vehicle testing, machine vision and intelligent industrial equipment. It cannot be simply classified as either a semiconductor-equipment company or a panel-equipment company. The industry is characterized by high technological intensity, extensive customization, high customer-certification barriers, pronounced capital-expenditure cycles, and the coexistence of scale and customization.

6.2 Competitive Landscape

• The technology base covers optics, image-processing algorithms, electronic testing, mechanical structures, motion control, automation software and industrial data systems.
• Customer product models, testing items, process flows, production-line layouts and takt-time requirements vary significantly. Equipment generally requires project-based development, on-site commissioning and delivery.
• Equipment must be validated on customers' production lines. In addition to meeting precision and stability requirements, suppliers must provide rapid response, on-site commissioning and after-sales support.
• Demand is affected by capital expenditure by panel and semiconductor manufacturers, new-product cycles in consumer electronics, capacity investment in new-energy vehicles and customers' equipment-renovation needs. The industry is therefore clearly cyclical.
• International manufacturers retain technological and customer-accumulation advantages in certain high-end semiconductor-testing, machine-vision and industrial-automation fields. Domestic companies are gradually expanding market share through localized services, cost advantages and import substitution.
• Although individual equipment is highly customized, some testing platforms, software modules, boards, fixtures and automation units can be reused. The industry therefore combines customization with scalability.

6.3 Major Competitors

Because HYC Technology covers flat-panel displays, consumer electronics, semiconductors and automotive electronics, no single listed company fully covers all of its businesses. Jingsce Electronics is a relatively direct comprehensive comparable company; Luster LightTech and Mstar Technologies overlap mainly in machine vision, display and intelligent process equipment; Changchuan Technology and AccoTEST overlap mainly in semiconductor test equipment. These companies are comparable by business segment rather than on a fully like-for-like basis.

7. Risk Factors

• Valuation and earnings-growth mismatch: As of September 11, 2026, the share price was approximately RMB 62.31 and the dynamic P/E ratio approximately 346x. P/E ratios disclosed by relevant platforms ranged from approximately 285x to 346x. Even using the single-broker 2028 EPS forecast of RMB 1.09, forward P/E remains approximately 60x. If actual results fall below expectations, valuation volatility may be amplified.
• Pusaisi integration risk: The company has completed the acquisition of 39% of Wuhan Pusaisi and raised its ownership to 51%, but the announcement explicitly stated that integration remains ongoing. Synergies in customers, R&D, supply chains and sales channels, integration costs, and Pusaisi's actual contribution to revenue, profit and cash flow remain uncertain.
• Customer concentration and bargaining-power risk: The top five customers accounted for 49.17% of 2025 sales, with the largest customer accounting for 14.91%. Customer names are anonymous, and large display, consumer-electronics, semiconductor and automotive companies have strong purchasing bargaining power. Delayed customer orders, lower capital expenditure, project price reductions or further concentration could affect revenue and gross margin.
• Accounts-receivable and inventory-occupation risk: At the end of 2025, net accounts receivable were RMB 1.596 billion and inventories RMB 884 million, together equivalent to approximately 110.8% of 2025 revenue. Changes in customer acceptance, collections or project-delivery schedules could pressure operating cash flow and increase inventory impairment or credit losses on accounts receivable.
• Project customization and gross-margin volatility risk: Equipment is generally customized according to customers' product structures, process flows, testing specifications and production-line takt times. Project quotations are determined at an early stage, and increases in raw-material, labor, manufacturing and subsequent commissioning-service costs may not be passed through promptly. The company's gross margin fell to 42.12% in 2024 and recovered to 46.32% in 2025; profitability may continue to fluctuate with product mix and project delivery.
• Downstream capital-expenditure cycle risk: Equipment procurement by flat-panel display, consumer-electronics, semiconductor and new-energy vehicle customers is respectively affected by panel and semiconductor capital expenditure, new-product cycles and automotive capacity investment. If relevant customers slow investment, orders for inspection equipment, assembly equipment and fixtures and accessories may fluctuate periodically.
• Short-term share-price and margin-trading risk: The company's share price rose approximately 36.6% cumulatively from September 4 to September 9, 2026, and then retreated for two consecutive days. On September 11, the stock declined on increased volume, with net institutional-fund outflow of approximately RMB 126 million and a margin balance of approximately RMB 660 million, or approximately 2.25% of circulating market capitalization. If the stock continues to decline, margin financing may amplify short-term volatility and forced deleveraging pressure.
• Quarterly earnings and results-delivery risk: First-half 2026 profits were concentrated mainly in the second quarter, and non-GAAP attributable net-profit growth was lower than attributable net-profit growth. The company has not issued new third-quarter or full-year 2026 earnings guidance. Revenue-recognition timing, non-recurring items, investment income and order ramp-up in new businesses may cause actual results to deviate from market expectations.
• Foreign-exchange and procurement-cost risk: Imported raw materials are primarily settled in Japanese yen, while exported products are mainly settled in U.S. dollars. Exchange-rate movements may affect both procurement costs and the translation of overseas revenue. In addition, raw materials remain the main cost item for inspection equipment and fixtures and accessories, and cost increases after project quotations have been determined may compress margins.

8. Conclusion and Outlook

HYC Technology's fundamentals are recovering from the trough in 2024. Revenue grew and the company returned to profitability in 2025, while revenue and profit continued to grow in the first half of 2026. The company has built integrated capabilities in test-solution design, optical and image-processing algorithms, electronic testing platforms, automation controls, and customer certification and delivery. Its diversified business footprint helps mitigate the impact of any single display or consumer-electronics cycle. Whether growth can continue will depend mainly on the sustainability of orders in the core inspection-equipment business, volume growth in semiconductor and automotive-electronics businesses, synergies from the Pusaisi acquisition, and the company's ability to reuse product platforms and control costs.

Earnings quality still requires further observation. In the first half of 2026, non-GAAP net-profit growth was below attributable net-profit growth, while profits were concentrated in the second quarter, suggesting that revenue-recognition timing, non-recurring items and investment income may affect quarterly performance. At the same time, the relatively high levels of accounts receivable and inventories tie up cash, while customer concentration and the strong bargaining power of large customers may also constrain project gross margins.

From a market-pricing and technical perspective, the share price has risen significantly recently, and valuation already reflects relatively substantial growth expectations for the next several years. If orders and profit contributions from new businesses such as semiconductor and optoelectronic testing fall short of expectations, or if acquisition integration and cash-flow improvement progress more slowly than expected, valuation digestion pressure could increase. If the company can sustain revenue growth while improving earnings quality and working-capital efficiency, the logic of its multi-business platform development still has room for further validation.

Data Sources

• Snapshot | Shanghai Stock Exchange
• Flat-Panel Display Business (FPD) - Suzhou HYC Technology Co., Ltd.
• Suzhou HYC Technology Co., Ltd. 2025 Annual Report
• Suzhou HYC Technology Co., Ltd. 2025 Annual Report
• HYC Technology
• About Us - Luster LightTech Technology Co., Ltd.
• Co., Ltd.
• Changchuan Technology Co., Ltd.
• AccoTEST (688200)_Company Announcements_AccoTEST: 2025 Annual Report Summary - Sina Finance_Sina.com
• HYC Technology (688001)_Company Announcements_HYC Technology: 2026 Semiannual Report - Sina Finance_Sina.com
• Company Event Commentary: Core Testing Business Profit Recovery, Entry into Optoelectronic Testing to Create a Second Growth Curve - Macro Research Report _ Data Center _ Eastmoney
• HYC Technology (688001) 2026 Interim Report Analysis: Revenue and Net Profit Both Grow Year on Year, with Relatively Large Accounts Receivable _ Stock Channel _ Securities Star
• HYC Technology (688001)_Company Announcements_HYC Technology: 2025 Preliminary Results Announcement - Sina Finance_Sina.com
• HYC Technology (688001): Company Event Commentary: Core Testing Business Profit Recovery, Entry into Optoelectronic Testing to Create a Second Growth Curve - Research Report Radar
• HYC Technology (688001) Stock Analysis_ NiuCha Diagnosis_ Tonghuashun Finance
• Research Report Indicator Express - Research Reports - Stock Channel - Securities Star
• The Past and Present of HYC Technology: 2025 Revenue of RMB 2.24 Billion, Ranked Seventh in the Industry; Net Profit of RMB 80.0844 Million, Ranked 26th | HYC Technology_Sina Finance_Sina.com
• Suzhou HYC Technology (688001) Latest Stock Price, Real-Time Chart, Stock Analysis and Forecast_Investing.com
• HYC Technology (688001)_Historical Trading Data
• HYC Technology (688001) P/E Ratio | Valuation | Fundamentals - Lixinger
• HYC Technology (688001) P/B Ratio | Valuation | Fundamentals - Lixinger
• HYC Technology (688001)_Company Announcements_HYC Technology: Announcement on Abnormal Share-Price Volatility - Sina Finance_Sina.com
• HYC Technology (688001)_Company Announcements_HYC Technology: Implementation Announcement for 2026 Semiannual Equity Distribution - Sina Finance_Sina.com
• https://static.cninfo.com.cn/finalpage/2026-07-22/1225434650.PDF
• HYC Technology (688001)_Company Announcements_HYC Technology: 2026 Semiannual Report Summary - Sina Finance_Sina.com
• HYC Technology (688001) Announcements (All) - Lixinger
• Securities Code: 688001　　Securities Abbreviation: HYC Technology　　Announcement No.: 2026-045
• HYC Technology (688001)_Company Announcements_HYC Technology: Announcement on Abnormal Share-Price Volatility - Sina Finance_Sina.com
• HYC Technology (688001) - Historical Trading Data | Daban Ke
• Suzhou HYC Technology (688001) Stock Trend Technical Analysis_Future Forecast_Buy/Sell Recommendations_Investing.com
• HYC Technology (688001) Stock News_Sina Finance_Sina.com
• HYC Technology (688001) Latest Updates_F10_Tonghuashun Financial Services

This report was automatically researched, compiled and generated by AI based on publicly available information. Information is current as of the data cut-off: closing price on September 11, 2026; next trading day: September 14, 2026. Market data was primarily cross-checked against the Investing, ET Net and Sina Finance pages cited in the research notes. Timing differences may exist. Specific data should be based on the company's official announcements and authoritative data terminals. This report is for information compilation and research reference only and does not constitute investment advice. Investors should make independent judgments and bear investment risks themselves.