Group 1 - Tianyue Advanced's stock closed at 60.00 yuan, down 3.07%, currently below its issuance price of 82.79 yuan per share [1] - The company was listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board on January 12, 2022, with a total of 42.9711 million shares issued [1] - The total funds raised from the initial public offering amounted to 3.558 billion yuan, with a net amount of 3.203 billion yuan after deducting issuance costs, exceeding the original plan by 1.203 billion yuan [1] Group 2 - On March 4, 2025, Tianyue Advanced disclosed that its application for issuing overseas listed shares (H-shares) was accepted by the China Securities Regulatory Commission [2] - The company submitted its application for H-share listing on February 24, 2025, to the Hong Kong Stock Exchange [2] - The issuance is subject to approval from various regulatory bodies, including the China Securities Regulatory Commission and the Hong Kong Stock Exchange, indicating uncertainty in the process [2]

Investment Rating - The report assigns a "Buy" rating to SICC (688234.SS) with a 12-month price target of Rmb75.50, indicating an upside potential of 24.7% from the current price of Rmb60.55 [10]. Core Insights - The management of SICC is optimistic about market demand driven by the increasing launch of 800V electric vehicles (EVs) and the growing need for EV fast charging. Additionally, the demand for SiC substrates in augmented reality (AR) glasses is expected to rise significantly [1][3]. - SICC is positioned well within the AD/ADAS trend, enhancing SiC's penetration in the EV market. The company is a local leader in SiC substrates, benefiting from local car OEMs diversifying their supply chains amid geopolitical tensions [1][3]. Summary by Sections Capacity Expansion - SICC's production facilities are located in Shanghai and Jinan, China. The Shanghai plant has a capacity of 300k units per year for phase 1 (6-inch or 8-inch SiC substrate) and an additional 300k units per year in phase 2, primarily for 8-inch SiC substrate. The Jinan site has a capacity of 100-150k units per year for 6-inch SiC substrate. The company plans to expand its 8-inch capacity to non-China markets to increase its market share among global SiC device manufacturers [2]. SiC Penetration in EVs - Management anticipates that the penetration rate of SiC in mainstream EV models will continue to rise as more 800V EV models are introduced in the coming years. The localization trend of SiC substrates is expected to support the company's growth, as local suppliers offer more cost-effective products, allowing customers to diversify their supply chains [3]. SiC Application in AR Glasses - SiC is identified as the optimal solution for AR glasses due to its superior reflection control and lightweight properties. Management projects that the demand for SiC substrates from AR glasses may eventually surpass that from EVs in the long term, presenting significant upside potential for SICC [7].

Market Performance - The main board led the gains with notable increases in stocks such as Geer Software (+10.01%), Xuguang Electronics (+8.33%), and Baoming Technology (+8.03) [1] - The ChiNext board saw significant growth with Dongtu Technology (+13.22%) and Fulede (+10.67%) leading the charge [1] - The Sci-Tech Innovation board also performed well, with Yinghantong (+8.09%) and Pinggao Co. (+7.26%) showing strong increases [1] - Active sub-industries included SW Other Communication Equipment (+2.71%) and SW Electronic Chemicals III (+0.06%) [1] Domestic News - Zhuzhou CRRC announced the construction of its third phase project, expected to start in November 2024, with production line operations anticipated by the end of 2025, focusing on 8-inch SiC wafers [1] - Guokemicro is planning to acquire a company engaged in specialty semiconductor wafer foundry and customized chip manufacturing through a share issuance and cash payment [1] - Lenovo reported a 23% increase in sales for Q4 FY2025, reaching approximately $17 billion, but net profit plummeted 64% to about $9 million, reflecting losses in derivative business and pricing pressures in the PC market [1] - Tianyue Advanced is advancing its expansion plan for 8-inch silicon carbide substrates at its Shanghai Lingang factory, with a phased approach to reach planned capacity [1] Company Announcements - Shengshi Technology announced the acquisition of three invention patents focused on security and customs clearance, applicable in airports, ports, and train stations [2] - Fujida declared a cash dividend of 1 yuan per 10 shares, totaling 18.77 million yuan based on a total share capital of 187,728,000 shares [2] - Luwei Optoelectronics announced a cash dividend of 3.00 yuan per 10 shares for the 2024 fiscal year [2] - Shiji Hengtong disclosed a pre-announcement of share reduction by a major shareholder, with a maximum of 1,953,966 shares (2.00% of total shares) to be reduced [2] Industry Developments - Meta is developing a new generation of smart glasses, expected to commercialize by 2026, enhancing the Live AI system's capabilities, particularly in facial recognition [3] - The South Korean government expressed concerns over potential U.S. tariffs on imported chips, warning of negative impacts on Korean investments in the U.S. and the complementary relationship between the two countries in the semiconductor industry [3] - ADI reported better-than-expected performance for Q2 FY2025, benefiting from a rebound in automotive and industrial demand, and raised its operational outlook [3] - In the flash memory market, some original manufacturers are facing delays in fulfilling DDR4 orders, with demand remaining strong as customers seek to secure supply [3]

Group 1 - The core viewpoint of the articles highlights the increasing trend of A-share companies, particularly in the semiconductor sector, pursuing dual listings in Hong Kong, driven by favorable regulatory policies and the need for global expansion [1][6][8] - The "A+H model" allows companies to access both domestic and international capital markets, enhancing their financial strength and market recognition [6][8] - Several semiconductor companies, including Zhaoyi Innovation, Unisoc, and others, have announced plans for Hong Kong listings, indicating a significant shift towards internationalization [2][4][5] Group 2 - The semiconductor companies aim to strengthen their global presence, with many explicitly stating that their Hong Kong listings are part of a strategy to enhance their international business operations and competitiveness [6][7] - The funds raised from these listings are primarily targeted at improving core technology capabilities, expanding product lines, and enhancing overseas sales networks [6][7] - Recent regulatory changes, such as the "Five Measures to Benefit Hong Kong" policy and adjustments to listing requirements, have made it easier for A-share companies to pursue dual listings in Hong Kong [7][8]

Investment Rating - The industry investment rating is "Outperform" (maintained) [2] Core Insights - The profitability of the power semiconductor industry is steadily improving, with the automotive sector and data centers being the main growth drivers. The domestic production of medium and low voltage devices for automobiles is continuously advancing [4][7] - The penetration of SiC MOSFETs in new energy vehicles is increasing, with a notable rise in the market share of domestic suppliers in the IGBT module sector [38][39] - The overall industry is entering a stable phase, with demand from consumption and industrial control maintaining steady growth, while the new energy vehicle market continues to expand [6][21] Summary by Sections Power Semiconductor Performance - The industry is experiencing a recovery in profitability as revenues improve, with automotive and data center applications being the primary growth areas [4] - The sales volume of new energy vehicles in March reached 1.24 million units, a year-on-year increase of 40.1%, with a penetration rate of 42.4% [32][34] New Energy Vehicles - The market share of new energy vehicles with a peak power of over 200kW has increased from 9% in 2022 to 25% in the first quarter of 2025 [35] - The penetration rate of SiC MOSFETs in new energy vehicles reached 18.9% in the first quarter of 2025, indicating a shift towards higher power modules [38] Charging Infrastructure - The number of charging stations in March 2025 increased by 634,000 units, with public charging stations showing a year-on-year decrease of 18.35% [5] Market Dynamics - The competition among leading companies in the IGBT module market is stabilizing, with domestic suppliers gaining market share as overseas competitors decline [38][39] - The industry is expected to continue its growth trend in 2024, driven by the demand for automotive power devices and the ongoing transition to electric vehicles [6][21]

Investment Rating - The industry investment rating is "Recommended," indicating a positive outlook for the industry fundamentals and expected outperformance against the benchmark index [29]. Core Insights - Wolfspeed, a leading global supplier of SiC substrates, is reportedly preparing to file for bankruptcy, which has led to a significant drop in its stock price by over 50% [3][4]. - In contrast, Tianyue Advanced, a domestic SiC substrate company, is projected to achieve approximately $240 million in revenue for 2024, representing a 41% year-on-year growth, and has reported a net profit of 179 million RMB, marking its first annual profit from core operations [8][9]. - The report highlights that domestic companies have gained a significant cost advantage over Wolfspeed, with Tianyue Advanced's gross margin improving from -5.8% to 24% from 2022 to 2025, while Wolfspeed's gross margin has declined from 34.1% to -17.1% during the same period [9][19]. Summary by Sections Section 1: Wolfspeed's Financial Struggles - Wolfspeed's revenue for the first three quarters of fiscal 2025 was $560 million, down approximately 8% year-on-year, with a net loss of about $950 million, marking a 37.7% increase in losses compared to the previous year [3][4]. - The company's total assets were reported at $7.57 billion, with net assets dwindling to approximately $210 million and cumulative losses reaching about $3.87 billion [5][6]. Section 2: Domestic Competitors' Advancements - Domestic companies have made significant strides in SiC substrate production, with Tianyue Advanced achieving mass production of 8-inch substrates and planning to launch 12-inch substrates in 2024 [14][17]. - Other domestic firms, such as ShuoKe Crystal and TianKe HeDa, are also showcasing advancements in 12-inch SiC substrates, indicating that domestic players are catching up with international competitors [14][17]. Section 3: Market Dynamics and Price Competition - The global market for N-type/conductive SiC substrates is projected to reach $1.04 billion in 2024, with a year-on-year decline of about 9%. Wolfspeed holds a market share of approximately 33.7%, while TianKe HeDa and Tianyue Advanced hold shares of 17.4% and 17.1%, respectively [18][19]. - If Wolfspeed files for bankruptcy, it is expected to alleviate current price competition pressures in the SiC substrate market, benefiting domestic manufacturers significantly [18][19]. Section 4: Long-term Demand Outlook - The report expresses optimism regarding the long-term growth of SiC chip demand, primarily driven by the electric vehicle sector, which accounts for about 70% of the demand, and the renewable energy sector, which exceeds 10% [23][25].

Core Insights - The financing balance of the Sci-Tech Innovation Board increased by 279 million yuan compared to the previous day, with 41 stocks seeing financing balances rise by over 10 million yuan, including companies like Chipone Technology and Tianyue Advanced [1][2] Financing Overview - As of May 21, the total margin financing balance on the Sci-Tech Innovation Board reached 152.737 billion yuan, marking an increase of 287 million yuan from the previous trading day, continuing a trend of increases for three consecutive trading days [1] - Among the stocks, 391 had a financing balance exceeding 100 million yuan, with 15 stocks having balances over 1 billion yuan, and 130 stocks between 50 million and 100 million yuan [1] Stock Performance - Chipone Technology led in net financing purchases with a balance of 949 million yuan, increasing by 44.839 million yuan, and its stock rose by 1.98% [2] - Other notable stocks with significant net purchases included Tianyue Advanced and Ninebot, with net purchases of 39.119 million yuan and 33.628 million yuan, respectively [2] - The average increase for stocks with net purchases exceeding 10 million yuan was 0.82%, with top gainers including Jingwei Hengrun and Haichuang Pharmaceutical, which rose by 11.51% and 8.04% respectively [2] Industry Focus - The most favored sectors by margin traders included electronics, power equipment, and biopharmaceuticals, with 20, 5, and 4 stocks respectively [2] - Stocks with high financing balances relative to their market capitalization included Rongbai Technology, with a financing balance of 1.159 billion yuan, accounting for 12.69% of its market value [2]

Group 1: Opportunities for Domestic Substitution - Domestic companies are making significant technological breakthroughs in the silicon carbide (SiC) sector, narrowing the gap with international leaders, particularly in the electric vehicle (EV) market [2] - In 2023, China's market share of SiC epitaxial wafers reached 38.8%, ranking first globally, driven by increased production capacity [3] - National policies are increasingly supportive of key semiconductor materials, with the "14th Five-Year Plan for Integrated Circuit Industry" emphasizing the need to overcome technological bottlenecks in third-generation semiconductor materials [4] Group 2: Restructuring Industry Landscape - The core competitiveness of the SiC industry chain lies in the self-sufficiency of upstream materials and equipment, with companies mastering key equipment and high-end materials poised for rapid growth [5] - Domestic companies are accelerating their catch-up in device manufacturing, especially in automotive-grade SiC power devices, benefiting from the continuous growth of the EV market [6] - The application scenarios for SiC are expanding beyond EVs to include photovoltaic power generation, rail transportation, and industrial power supplies, positioning domestic companies for significant global market presence [7] Group 3: Dual-Driven Growth of Domestic Breakthroughs - Chinese companies have established a significant cost advantage through continuous R&D and process innovation, with 6-inch substrate prices at only 30% of international levels [8] - The acceleration of equipment localization is exemplified by Northern Huachuang's new generation SiC crystal growth furnace, which reduces equipment prices by 50% and surpasses key performance indicators [9] Group 4: Market Opportunities for Domestic SiC - The EV market is the largest application for SiC, with projected production and sales of 12.888 million and 12.866 million units in China for 2024, reflecting year-on-year growth of 34.4% and 35.5% [12] - In the photovoltaic and energy storage sectors, SiC is a key technology for improving system efficiency, with China's new photovoltaic installations expected to reach 277.2 GW in 2024, a 27.8% increase [13] - Emerging technologies such as AI data centers and AR glasses present new growth opportunities for the SiC industry, with AI data centers requiring high-efficiency power modules [14] Group 5: Benefiting Companies - Tianyue Advanced is one of the few global participants capable of mass-producing 8-inch SiC substrates, with a projected global market share ranking second in conductive SiC substrate materials by 2024 [16] - Tianshuo He Da is the largest domestic supplier of power electronics SiC substrates, holding a 17.3% share in the global market, and is positioned to capture orders following Wolfspeed's bankruptcy [16] - Sinda Semiconductor is making progress in the SiC sector, with its SiC MOSFET modules for passenger vehicle motor controllers seeing increased volume [16] - Mind Electronics, through its subsidiary Guangxin Microelectronics, is expected to achieve an annual production capacity of 36,000 6-inch SiC wafers, with costs significantly lower than competitors [17]

Market Overview - The main funds in the Shanghai and Shenzhen markets experienced a net outflow of 23.932 billion yuan, with the Sci-Tech Innovation Board seeing a net outflow of 1.845 billion yuan [1] - A total of 244 stocks saw net inflows, while 342 stocks experienced net outflows [1] Sci-Tech Innovation Board Performance - On the Sci-Tech Innovation Board, 157 stocks rose, with one stock, Sangfor Technologies, hitting the daily limit, while 422 stocks declined [1] - C Hanbang, listed for five days, had the highest decline at 4.82% [1] Fund Flow Analysis - Among the stocks with net inflows, Tianyue Advanced led with a net inflow of 76.592 million yuan, followed by Ninebot and Rongbai Technology with inflows of 65.280 million yuan and 54.701 million yuan, respectively [2] - The stocks with the highest net outflows included SMIC, which saw a net outflow of 455 million yuan and a decline of 1.14%, followed by Liyang Chip and Shijia Photon with outflows of 160 million yuan and 141 million yuan, respectively [1][2] Continuous Fund Flow - There are 59 stocks that have seen continuous net inflows for more than three trading days, with BGI Genomics and Te Bao Bio leading at 10 consecutive days of inflow [2] - Conversely, 102 stocks have experienced continuous outflows, with Pioneer Technology seeing the longest streak at 25 days [2] Top Stocks by Net Inflow - The top stocks by net inflow include: - Tianyue Advanced: 76.592 million yuan, 8.01% inflow rate, 6.58% increase [2] - Ninebot: 65.280 million yuan, 15.53% inflow rate, 2.85% increase [2] - Rongbai Technology: 54.701 million yuan, 13.22% inflow rate, 1.13% increase [2] Stocks with Significant Outflows - The stocks with the most significant outflows include: - SMIC: 455 million yuan outflow, 1.14% decline [1][2] - Liyang Chip: 160 million yuan outflow [1] - Shijia Photon: 141 million yuan outflow [1]

Group 1 - The global N-type SiC substrate industry revenue is projected to decline by 9% in 2024, reaching $1.04 billion, primarily due to weakened demand in the automotive and industrial sectors, along with intensified market competition leading to significant price drops [2][3] - SiC, as a representative third-generation compound semiconductor material, is crucial in power electronic devices and is widely used in electric vehicles, photovoltaics, energy storage, industrial power supplies, and rail transportation [2] - The price of 6-inch SiC substrates has fallen below $500, approaching the manufacturers' cost line, due to the entry of Chinese companies into the market [2] Group 2 - Wolfspeed remains the most significant supplier in the SiC materials market with a 33.7% market share in 2024, while Chinese companies TanKeBlue and SICC hold the second and third positions with 17.3% and 17.1% market shares, respectively [5] - The aggressive pricing strategies of Chinese companies are disrupting the existing market structure, leading to concerns about increased internal competition and potential impacts on product quality [6][7] - The entire SiC device-related ecosystem is experiencing continuous capacity growth, raising concerns about the sustainability of the market dynamics [7] Group 3 - Silan Microelectronics has achieved a monthly production capacity of 9,000 pieces of 6-inch SiC MOS chips, with 50,000 units shipped to four domestic automotive manufacturers [9] - As the ecosystem improves, domestic companies are focusing on quality enhancement alongside competitive pricing, with Silan's 8-inch mini line achieving higher yield rates compared to the 6-inch line [9]