China Securities Co., Ltd.: The growth space of electronic testing and measuring instruments is vast. Independent controllability resonates with going global.

China Securities Co., Ltd. released a research report stating that the global electronic testing and measurement instrument market space is close to a trillion, and since 2025, the industry demand turning point has appeared, laying the foundation for accelerated performance growth. Under the catalysis of tariffs, the sector is expected to benefit from autonomous controllable and overseas resonance. After the tariff war in April 2025, the market reignited confidence in the autonomy and controllability of instruments. With the imposition of equal tariffs, coupled with breakthroughs in high-end products by domestic manufacturers, domestic alternatives are now economically and feasible. In addition, tariffs are pushing domestic electronic testing instrument manufacturers to accelerate their pace of going global, and overseas base construction can better radiate the global market while avoiding tariff risks. Looking ahead, since 2025, the global leading companies' revenue growth has rebounded, and domestic manufacturers are expected to return to a higher growth range under the support of domestic alternatives. The main points of China Securities Co., Ltd. are as follows: The global trillion-level market for electronic testing instruments provides huge growth space for domestic manufacturers. The global electronic testing and measurement instrument market space is close to a trillion, with digital oscilloscopes, RF instruments, and other five categories of general instruments accounting for over 40%, which are the main focus markets for domestic listed companies of electronic testing instruments. With the development of downstream fields such as communications, electronics, transportation, energy, education, and research, the general electronic measurement instrument market is expected to steadily expand until 2022. Overseas leading companies consider ASIC chips as their core competitive advantage and build high-end product barriers; Rigol Technologies' self-developed chips have achieved significant results; technological advances by domestic ADC manufacturers provide the possibility of cooperation in developing oscilloscope chips. At the competitive level, overseas giants have a long history and lead in technology and scale, while domestic manufacturers have huge growth potential. Industry changes: The demand turning point has emerged, and high-end products continue to iterate. 1) Demand turning point: Taking the global leader Keysight Technologies as an example, the growth rate of the electronic testing instrument industry experienced a temporary slowdown in 2023-2024, but a turning point has emerged since Q1 2025; under the support of domestic alternatives, domestic manufacturers are expected to return to a higher growth range. 2) High-end iteration: Domestic manufacturers continue to iterate their high-end products, with Prigesun's DS80000 series oscilloscopes achieving sales of 63 units in 2024, marking the first large-scale launch of high-end oscilloscopes that meet international standards. Non-listed companies such as Wanli Eye and Jiujin have surpassed others in the curve, and the level of domestic oscilloscopes has made rapid progress. In terms of RF instruments, Dingyang released the "Galaxy Series Three-piece Suit," with product indicators continuing to improve significantly. The continuous increase in the proportion of direct sales of instruments in China confirms the trend of product upscale. Analysis perspective under tariffs: Autonomous controllability & resonance with going global 1) Autonomous controllability: In the general electronic testing instrument market, the total domestic revenue of three listed companies is around 800 million yuan, with a total domestic market share of only about 5%, with over 80% estimated to be from American, European, and other foreign brands. Under the impact of tariffs, the economic advantages of domestic alternative products have been magnified, coupled with the feasibility brought by product high-endization, the company expects to replicate the situation of 2019 in 2025, and domestic alternatives are expected to enter an accelerated stage once again. 2) Going global: Domestic electronic testing instrument companies have had relatively large exposure in European and American markets in the past; tariffs have accelerated the pace of capacity going global. By forward-looking layout of overseas production bases and speeding up production, the short-term effective reduction of tariff risks can better radiate the global market in the medium to long term.