Core Viewpoint - Tianyu Semiconductor, a manufacturer of silicon carbide (SiC) epitaxial wafers, successfully completed its IPO with a subscription amount of at least HKD 77.1 billion, resulting in an oversubscription of 43.2 times the public offering amount of HKD 1.74 billion [1] Group 1: Company Overview - Tianyu Semiconductor was established in 2009 and focuses primarily on the production of self-manufactured silicon carbide epitaxial wafers [2] - The company is the third-largest manufacturer of self-manufactured silicon carbide epitaxial wafers in the global market, holding a market share of 6.7% by revenue and 7.8% by volume for 2024 [2] - In the Chinese market, Tianyu Semiconductor is the largest manufacturer of self-manufactured silicon carbide epitaxial wafers, with a market share of 30.6% by revenue and 32.5% by volume for 2024 [2] Group 2: Financial Performance - The company's revenue increased from RMB 437 million in 2022 to RMB 1.171 billion in 2023, but is projected to decline to RMB 519.6 million in 2024 [3] - Net profit surged from RMB 2.8 million in 2022 to RMB 95.9 million in 2023 [3] Group 3: Use of Proceeds - Tianyu Semiconductor plans to allocate 62.5% of the net proceeds from the global offering to expand overall production capacity, 15.1% to enhance independent research and innovation capabilities, 10.8% for strategic investments or acquisitions, 2.1% to expand the global sales and marketing network, and 9.5% for working capital and general corporate purposes [3] Group 4: Production Capacity and Services - The company is upgrading its manufacturing processes and research capabilities to meet the evolving demands for larger and more cost-effective semiconductor materials [2] - A new ecological park in Dongguan has been completed and is expected to be used for mass production of 6-inch and 8-inch silicon carbide epitaxial wafers, with operations commencing by the end of 2025 [2] - Tianyu Semiconductor offers value-added services related to silicon carbide epitaxial wafers, including epitaxial wafer foundry services, wafer cleaning services, and related testing services [2]

Core Insights - The global semiconductor industry is undergoing a technological iteration centered around silicon carbide (SiC) and gallium nitride (GaN), which are crucial for enhancing energy efficiency in the renewable energy sector [1] - Tianyu Semiconductor is set to enter the capital market, marking a significant milestone in its development and providing a high-quality investment opportunity in the hard technology sector [1] Industry Overview - The market for silicon carbide power semiconductor devices is projected to grow from $3.2 billion in 2024 to $15.8 billion by 2029, with a compound annual growth rate (CAGR) of 37.3%. The Chinese market is expected to grow even faster, with a CAGR of 41.7% during the same period [2] - Silicon carbide plays an irreplaceable role in the AI sector due to its superior physical properties, especially as demand for AI computing power surges [2] Company Positioning - Tianyu Semiconductor ranks first in both revenue and sales in the Chinese silicon carbide epitaxial wafer market, with market shares of 30.6% and 32.5%, respectively. Globally, it holds 6.7% and 7.8% market shares, placing it among the top three [2] - The company has gained recognition from leading international clients such as Infineon and ON Semiconductor, successfully integrating its products into the supply chains of top global integrated device manufacturers [2] Valuation Analysis - Tianyu Semiconductor's expected market capitalization upon issuance is approximately HKD 22 billion. Compared to peers, this valuation appears significantly attractive, especially when considering the high valuations of other companies in the sector [3] - For instance, the market capitalization of GaN concept company Innoscience is around HKD 62.9 billion, while Tianyu's estimated valuation is lower despite its leading position in the market [3] - The valuation of Tianyu Semiconductor is also favorable when compared to pre-IPO valuations of similar companies, indicating a clear discount [3] Investment Mechanism and Support - Tianyu Semiconductor employs a public offering strategy with a 10% B mechanism, which historically provides unique support for company performance post-listing in the Hong Kong market [4] - The company has implemented a 15% green shoe mechanism to stabilize stock prices, allowing underwriters to buy shares if the stock price falls below the offering price, thus providing an additional safety margin for investors [4] - The company's production capacity utilization is expected to approach 60% by May 30, 2025, reflecting a tight supply-demand balance, with IPO proceeds primarily allocated for capacity expansion [4] Strategic Outlook - Driven by national strategies for semiconductor self-sufficiency and a global energy revolution, Tianyu Semiconductor is poised for a value reassessment post-listing, representing a historic investment opportunity in China's third-generation semiconductor industry [5]

Investment Rating - The report assigns an IPO-specific rating of 5.1 out of 10 for the company, based on operational performance, industry outlook, valuation, and market sentiment [7]. Core Insights - The company is a leading manufacturer of self-produced silicon carbide (SiC) epitaxial wafers, with a significant market share in China and globally. It has achieved mass production of 4-inch, 6-inch, and 8-inch wafers, with the 6-inch wafers being the core product [1][3]. - The company is positioned as the largest self-produced SiC epitaxial wafer manufacturer in China and the third largest globally, with a revenue market share of 30.6% in China and 6.7% globally for 2024 [1][3]. - The demand for SiC wafers is driven by high-growth sectors such as electric vehicles and power supply, indicating a clear long-term demand support [1][4]. Company Overview - The company has a production capacity of 420,000 wafers per year as of May 2025, with a new production base expected to be operational by the end of 2025, further consolidating its scale advantage [1][4]. - Financial performance shows revenue growth from 437 million yuan in 2022 to 1.171 billion yuan in 2023, but a projected loss of 500 million yuan in 2024. However, in the first five months of 2025, revenue was 257 million yuan, showing a 13.6% year-on-year decline, but net profit turned positive at 9.515 million yuan [2][11]. Industry Status and Outlook - The global market for self-produced SiC epitaxial wafers is expected to grow, with the company capturing a significant share. The industry is characterized by high demand due to the properties of SiC, which are suitable for high-temperature and high-voltage applications [3][4]. - The company benefits from the "new infrastructure" policy in China, which supports semiconductor localization, positioning it favorably for future growth [4]. Strengths and Opportunities - The company has a strong market position as the largest domestic manufacturer of SiC epitaxial wafers, with a significant production capacity and ongoing expansion plans [4]. - It has a robust R&D capability with 84 patents, including 33 invention patents, and is involved in multiple national and international standard-setting projects [4]. - The increasing demand from sectors like electric vehicles and power equipment is expected to drive growth, particularly for 8-inch products, which are becoming mainstream due to their efficiency advantages [4]. Weaknesses and Risks - The average selling price of the 6-inch wafers has decreased significantly from 9,631 yuan per piece in 2022 to 3,138 yuan in the first five months of 2025, which poses a challenge to revenue [5]. - The company faces ongoing capital expenditure pressures, with a cumulative investment of 2.45 billion yuan from 2022 to 2024, and plans for further significant investments in capacity expansion [5].

Core Viewpoint - Tianyu Semiconductor, a manufacturer of silicon carbide (SiC) epitaxial wafers, is experiencing strong demand in its IPO, with a subscription amount of at least HKD 2.16 billion, indicating an oversubscription of 11.4 times against the public offering amount of HKD 174 million [1] Group 1: Company Overview - Tianyu Semiconductor was established in 2009 and focuses on the production of self-manufactured silicon carbide epitaxial wafers [1][2] - The company is the third-largest manufacturer of self-manufactured silicon carbide epitaxial wafers in the global market, holding a market share of 6.7% by revenue and 7.8% by volume for 2024 [1] - In the Chinese market, Tianyu is the largest manufacturer of self-manufactured silicon carbide epitaxial wafers, with a market share of 30.6% by revenue and 32.5% by volume for 2024 [1] Group 2: Product and Technology Development - The company provides 4-inch, 6-inch, and 8-inch silicon carbide epitaxial wafers and is upgrading its manufacturing processes and R&D capabilities to meet evolving customer demands [2] - A new Dongguan Ecological Park base has been completed, expected to be operational by the end of 2025, primarily for mass production of 6-inch and 8-inch silicon carbide epitaxial wafers [2] - Tianyu Semiconductor offers value-added services related to silicon carbide epitaxial wafers, including epitaxial wafer foundry services, wafer cleaning services, and related testing services [2] Group 3: Financial Performance - The company's revenue increased from RMB 437 million in 2022 to RMB 1.171 billion in 2023, but is projected to decline to RMB 519.6 million in 2024 [2] - Net profit surged from RMB 2.8 million in 2022 to RMB 95.9 million in 2023 [2] Group 4: Use of IPO Proceeds - Tianyu Semiconductor plans to allocate 62.5% of the net proceeds from the global offering to expand overall production capacity [3] - 15.1% of the proceeds will be used to enhance R&D and innovation capabilities [3] - 10.8% will be directed towards strategic investments or acquisitions, while 2.1% will be for expanding global sales and marketing networks [3]

Core Viewpoint - Tianyu Semiconductor, a manufacturer of silicon carbide (SiC) epitaxial wafers, is conducting an IPO with significant oversubscription, indicating strong market interest and confidence in its growth potential [1][2]. Group 1: Company Overview - Tianyu Semiconductor was established in 2009 and specializes in the production of self-manufactured silicon carbide epitaxial wafers [1][2]. - The company is the third-largest manufacturer of self-made silicon carbide epitaxial wafers in China, holding a market share of 30.6% by revenue and 32.5% by volume in the domestic market for 2024 [2]. Group 2: Financial Performance - The company's revenue increased from RMB 437 million in 2022 to RMB 1.171 billion in 2023, but is projected to decline to RMB 519.6 million in 2024 [3]. - Net profit surged from RMB 2.8 million in 2022 to RMB 95.9 million in 2023 [3]. Group 3: IPO Details - Tianyu Semiconductor is offering 30.0705 million H-shares at a price of HKD 58 per share, with a public offering accounting for 10% of the total shares [1]. - The company has secured cornerstone investors, including private equity funds, with a total subscription amount of approximately RMB 120 million and HKD 30 million [1]. Group 4: Future Plans - The company plans to use 62.5% of the net proceeds from the global offering to expand overall production capacity, 15.1% for enhancing R&D capabilities, and 10.8% for strategic investments or acquisitions [3]. - A new manufacturing base in Dongguan is expected to be operational by the end of 2025, focusing on the mass production of 6-inch and 8-inch silicon carbide epitaxial wafers [2].

Investment Rating - The report suggests a cautious subscription for Tianyu Semiconductor (2658.HK) [4] Core Insights - The company focuses on the manufacturing of self-produced silicon carbide (SiC) wafers, which are essential raw materials for power semiconductor devices. Compared to traditional semiconductor materials like silicon, SiC offers significant performance advantages, making it suitable for high-voltage, high-temperature, and high-frequency environments [2] - According to Frost & Sullivan, the company ranks as the third-largest SiC wafer manufacturer in China, with a market share of 6.7% by revenue and 7.8% by volume as of 2024 [2] - The global market for SiC power semiconductor devices is projected to grow significantly, from USD 600 million in 2020 to USD 3.2 billion in 2024, representing a compound annual growth rate (CAGR) of 49.8%. The market is expected to reach USD 15.8 billion by 2029, with a CAGR of 40.5% from 2025 to 2029 [3] Summary by Sections IPO Details - The IPO price is set at HKD 58 per share, with a total fundraising amount of HKD 1.6711 billion. The total number of shares offered is approximately 3,007,050 shares, with 90% allocated for international placement and 10% for public offering [1] Financial Performance - The company's revenues for 2022, 2023, and 2024 were RMB 436.86 million, RMB 1,171.21 million, and RMB 519.62 million, respectively. The net profits for the same years were RMB 6.95 million, RMB 101.44 million, and RMB -492.45 million, indicating a decline in 2024 primarily due to reduced market prices and overseas sales of SiC wafers [3] Market Position - The company has an annual production capacity of approximately 420,000 6-inch and 8-inch wafers, making it one of the largest producers in China for these sizes [2] - The presence of Huawei's Hubble Technology as an investor is expected to provide significant growth opportunities for the company in the medium to long term [4]

Core Viewpoint - The IPO of Tianyu Semiconductor is set against a backdrop of high demand and significant market interest, with a notable increase in application rates and a competitive market environment for silicon carbide epitaxial wafers [1][2][9]. Company Overview - Tianyu Semiconductor, established in 2009 and headquartered in Dongguan, Guangdong, has become a leading player in the domestic silicon carbide epitaxial wafer sector, focusing on design, R&D, and manufacturing [3]. - The company holds the largest market share in China for silicon carbide epitaxial wafers, with shares of 30.6% and 32.5% in revenue and sales volume respectively for 2024 [3]. Financial Performance - Revenue projections for Tianyu Semiconductor show significant growth from 436.9 million RMB in 2022 to an estimated 1.171 billion RMB in 2023, marking a 168.1% increase, primarily driven by demand in the new energy sector [4]. - However, a sharp decline in revenue is expected in 2024, with a forecasted drop of 55.6% to 519.6 million RMB, alongside a net loss of 500 million RMB [4]. - In the first five months of 2025, the company reported a net profit of 9.5 million RMB, indicating a recovery from the previous year's losses due to product optimization and cost control [5]. Market Dynamics - The global silicon carbide epitaxial wafer market is experiencing rapid growth, with a projected increase from 400 million USD in 2020 to 1 billion USD by 2024, reflecting a compound annual growth rate (CAGR) of 27.6% [9]. - The trend of domestic substitution is crucial, as Tianyu Semiconductor is positioned to replace foreign suppliers, enhancing its market share [9]. Competitive Landscape - The Chinese silicon carbide epitaxial wafer market is characterized by high concentration, with the top five suppliers accounting for 87.6% of the market share in 2024 [9]. - Despite being a market leader, Tianyu Semiconductor faces challenges from increasing production capacities and rapid technological advancements among domestic and international competitors, leading to declining prices for epitaxial wafers [9]. Product and Customer Insights - The company’s main revenue source is the sale of self-manufactured silicon carbide epitaxial wafers, which accounted for over 90% of total revenue from 2022 to 2024 [7]. - The 8-inch product line is emerging as a strategic growth driver, with sales increasing over 75 times in the first five months of 2025 [8]. - Customer concentration remains a concern, with the top five clients contributing 61.5% to 75.2% of revenue from 2022 to 2024 [8].

Core Viewpoint - Tianyu Semiconductor, a manufacturer of silicon carbide epitaxial wafers based in Dongguan, Guangdong, is set to launch its IPO from November 27 to December 2, 2025, with plans to list on the Hong Kong Stock Exchange on December 5, 2025, under the sponsorship of CITIC Securities [3][4]. Group 1: IPO Details - The total number of shares offered is 30,070,500 H-shares, with 3,007,050 shares available for public sale and 27,063,450 shares for international placement [4][5]. - The offer price is set at HKD 58.00 per share, with an estimated total fundraising amount of approximately HKD 1.744 billion [4][5]. - The IPO will adopt Mechanism B, with an initial public offering allocation ratio of 10% and no reallocation mechanism [5][4]. Group 2: Use of Proceeds - The net proceeds from the IPO are expected to be around HKD 1.671 billion, with approximately 62.5% allocated for capacity expansion, 15.1% for R&D and innovation, 10.8% for strategic investments or acquisitions, 2.1% for global sales and marketing, and 9.5% for working capital and general corporate purposes [8]. Group 3: Shareholder Structure - Post-IPO, the controlling shareholders will include Mr. Li Xiguang and Ms. Su Qin, holding approximately 53.8954% of the shares, with other notable investors including Huawei's Hubble Technology and BYD [9][8]. - The shareholder structure indicates a diverse range of investors, with public shareholders holding 7.6463% of the shares [9][10]. Group 4: Company Background - Established in 2009, Tianyu Semiconductor is a leading supplier of third-generation silicon carbide semiconductor materials and ranks first in China's silicon carbide epitaxial wafer industry by revenue and sales volume, with market shares of 30.6% and 32.5% respectively [10]. - The company is one of the first in China to achieve mass production of 4-inch, 6-inch, and 8-inch silicon carbide epitaxial wafers, with an annual capacity of approximately 420,000 wafers as of May 31, 2025 [10].

Group 1 - The semiconductor sector in the Hong Kong stock market has shown strong performance, with notable increases in stock prices for companies like Huahong Semiconductor, which has risen approximately 250% [2] - Tianyu Semiconductor has initiated its IPO process in the Hong Kong market, aiming to add another semiconductor stock to the market [3] - Tianyu Semiconductor plans to issue approximately 30.07 million H-shares, with 10% allocated for public offering in Hong Kong and 90% for international offering, expecting to raise around HKD 1.671 billion [3] Group 2 - Tianyu Semiconductor specializes in the manufacturing of self-produced silicon carbide (SiC) epitaxial wafers, which are critical materials for power semiconductor devices [4] - In the global market for self-produced SiC epitaxial wafers in 2024, Tianyu Semiconductor is the third-largest manufacturer in China, holding a market share of 6.7% by revenue and 7.8% by volume [4] - The company's revenue figures from 2022 to the first five months of 2025 show significant fluctuations, with revenues of RMB 437 million, RMB 1.171 billion, RMB 520 million, and RMB 257 million respectively [4][5]

Group 1 - Tianyu Semiconductor, a Chinese silicon carbide epitaxial wafer manufacturer, is launching an IPO from today until next Tuesday (December 2), offering 30.0705 million H-shares [1] - The IPO price is set at HKD 58 per share, aiming to raise approximately HKD 1.744 billion [1] - The share allocation consists of 10% for public offering in Hong Kong and 90% for international placement [1] Group 2 - The company plans to allocate about 62.5% of the net proceeds over the next five years for overall capacity expansion to enhance market share and product competitiveness [1] - Approximately 15.1% of the funds will be used to improve independent research and innovation capabilities to enhance product quality and shorten new product development cycles [1] - About 10.8% is earmarked for strategic investments or acquisitions to expand the customer base, enrich the product portfolio, and supplement technology for long-term development strategies [1] - Around 2.1% will be used to expand global sales and marketing networks [1] - Approximately 9.5% will be allocated for working capital and general corporate purposes [1]