Group 1 - The core viewpoint of the article highlights the strong performance of stocks related to Moer Thread, with significant price increases observed in several companies following the news of Moer Thread's IPO approval [1] - Moer Thread's IPO application was approved by the Shanghai Stock Exchange's Science and Technology Innovation Board, with the review process taking only 88 days from acceptance to approval [1] - The company plans to raise 8 billion yuan through the IPO, which will be allocated to the development of new generation self-controlled AI training and inference integrated chips, graphics chips, and AI SoC chips [1] Group 2 - Moer Thread has already mass-produced five types of chips, establishing a product matrix that covers AI computing, high-performance computing, and graphics rendering [1] - The company has completed the layout of a full-stack AI product line, encompassing "cloud-edge-end" solutions [1]

Group 1 - As of September 28, 154 public fund institutions participated in A-share market research activities, covering 28 industries and involving 605 listed companies with a total of 4,275 research instances [1] - From September 1 to 28, 70 listed companies saw stock price increases exceeding 20%, with 19 companies experiencing gains over 40%. The mechanical equipment sector stood out, with World achieving a remarkable increase of 113.77%, attracting attention from 30 public fund institutions [3] - During the same period, 44 listed companies were researched by public fund institutions at least 20 times, with Crystal Machine Electric leading with 81 instances of research [3] Group 2 - The research activities of public fund institutions were primarily concentrated in 18 industries, with the mechanical equipment sector being the most focused, involving 90 listed companies. Key companies included Huichuan Technology, Zoomlion, and Jepter [4] - The electronics sector ranked second, with 83 listed companies and a total of 702 research instances, highlighting companies like Shenzhen South Circuit, Jingchen Co., and Juguang Technology as focal points [4] - Other industries with high research activity included electric power equipment, pharmaceuticals, and basic chemicals [4]

Group 1 - The semiconductor revenue share is continuously increasing, with rapid growth in orders. The first 12-inch silicon carbide (SiC) substrate pilot line has been successfully commissioned, marking a significant advancement in domestic technology and production capabilities [1] - SiC's high thermal conductivity and processing window are expected to significantly enhance the cooling of CoWoS structures while reducing package size. SiC serves as an ideal material for high-performance CoWoS interlayers due to its thermal conductivity of 490 W/m·K, which is 2-3 times higher than that of silicon [2] - SiC's high refractive index and thermal conductivity make it an ideal substrate material for AR glasses. A single-layer SiC lens can achieve a field of view (FOV) of over 80 degrees, providing a thinner design and clearer visual effects [3] Group 2 - SiC's high hardness and thermal stability support the introduction of etching processes, effectively improving production capacity and yield. The company is actively expanding its 6 and 8-inch substrate capacity and has achieved breakthroughs in 12-inch SiC crystal growth technology [4] - The company maintains its profit forecast for 2025-2027, estimating net profits of 1 billion, 1.2 billion, and 1.5 billion yuan, corresponding to current P/E ratios of 58, 47, and 38 times, respectively, and maintains a "buy" rating [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The first 12-inch silicon carbide (SiC) substrate processing pilot line has officially commenced, opening up growth opportunities for the company [7] - The company has achieved a significant technological breakthrough in 12-inch SiC crystal growth, marking a transition from a follower to a leader in global SiC substrate technology [7] - SiC's high thermal conductivity and processing window are expected to enhance the cooling of CoWoS structures and reduce packaging dimensions, making it an ideal material for high-performance applications [7] - The company is actively expanding its production capacity for 6 and 8-inch substrates and has already developed the capability for 12-inch substrates [7] - The forecasted net profit for the company is projected to be 1 billion, 1.2 billion, and 1.5 billion yuan for 2025, 2026, and 2027 respectively, corresponding to a P/E ratio of 58, 47, and 38 times [7] Financial Summary - Total revenue for 2023 is projected at 17,983 million yuan, with a year-on-year growth of 69.04% [1] - The net profit attributable to the parent company for 2023 is expected to be 4,558 million yuan, reflecting a year-on-year increase of 55.85% [1] - The latest diluted EPS for 2023 is estimated at 3.48 yuan per share [1] - The company’s total assets are projected to reach 31,550 million yuan in 2024, with a total liability of 13,616 million yuan [8] - The company's cash flow from operating activities is expected to be 1,773 million yuan in 2024 [8]

Summary of Key Points from the Conference Call Company and Industry Overview - The conference call discusses **Jingsheng Electromechanical** and its advancements in the **silicon carbide (SiC) substrate** industry, particularly focusing on the **12-inch SiC substrate** technology and its applications in various sectors including **power devices** and **AR glasses** [2][3][5]. Core Insights and Arguments - **12-inch SiC Substrate Development**: Jingsheng has successfully completed the trial production line for 12-inch SiC substrates, achieving 100% domestic equipment development, which significantly reduces downstream application costs and enhances production efficiency by approximately **125 times** compared to 8-inch substrates [2][5]. - **Market Positioning**: The company is actively validating its SiC substrates with global customers and has secured bulk orders from international clients, indicating strong market demand and positioning [2][5]. - **Production Capacity**: The company has a domestic capacity of **900,000 pieces** for power devices, with plans to ramp up production of 8-inch substrates significantly by the end of **2026 to early 2027** [2][6]. - **Strategic Partnerships**: Jingsheng has signed strategic agreements with companies like **Xreal** to provide semi-insulating SiC substrates for AR glasses, with positive progress in product validation [2][6]. - **Pricing Dynamics**: Current prices for 6-inch SiC substrates are around **1,500 RMB**, while 8-inch substrates are priced at approximately **4,000 RMB**. The company plans to increase 8-inch production while maintaining the current scale for 6-inch substrates [2][13]. Additional Important Insights - **Technological Leadership**: Jingsheng's integration of **alkaline nitrogen technology** with existing large-size silicon wafer processes positions it competitively in the market, allowing rapid response to market demands [2][9]. - **Chinese Manufacturers' Dominance**: Chinese manufacturers, including Jingsheng, hold a dominant position in the SiC substrate market, surpassing foreign competitors in both technology and cost [10][21]. - **Future Capacity Expansion**: The company plans to achieve **300,000 pieces** of 8-inch capacity in **Shangyu** by the end of **2025**, and **240,000 pieces** in **Malaysia** by **2027** [15][6]. - **Market Trends in Photovoltaics**: Despite the current downturn in the photovoltaic equipment sector, Jingsheng anticipates potential growth as new technologies are introduced and market conditions improve [17][18]. - **Cost Efficiency and Profitability**: The company is focused on improving efficiency and reducing costs in its photovoltaic equipment, with significant advancements in technologies that enhance battery performance [18][29]. Conclusion - Jingsheng Electromechanical is positioned for significant growth in the SiC substrate market, with strong technological capabilities, strategic partnerships, and a clear plan for capacity expansion. The company is also navigating challenges in the photovoltaic sector while maintaining a focus on innovation and cost efficiency.

Core Viewpoint - The article emphasizes the critical importance of domestic semiconductor equipment manufacturing in China, particularly in the thin film deposition sector, as a response to U.S. export restrictions and the need for technological independence [2][40]. Group 1: Industry Overview - The thin film deposition equipment market in China reached approximately 47.9 billion yuan in 2023, with a domestic production rate of less than 25%, indicating significant potential for domestic substitution [6][41]. - The semiconductor manufacturing process requires a growing number of thin film layers, with the number of deposition steps increasing from about 40 for 90nm processes to over 100 for 3nm processes [3][63]. - The global semiconductor capital expenditure (Capex) is expected to enter a new growth phase, driven by advanced products and increasing production capacity [48]. Group 2: Technological Developments - The transition from 2D to 3D chip structures has fundamentally changed the technology focus and market structure for thin film deposition equipment [9]. - ALD (Atomic Layer Deposition) technology is becoming essential for advanced nodes and 3D structures due to its atomic-level thickness control and 100% step coverage [19][20]. - PECVD (Plasma-Enhanced Chemical Vapor Deposition) holds the largest market share (33%) among thin film deposition technologies, particularly suited for 28nm and below nodes [13][41]. Group 3: Domestic Manufacturers - Key domestic manufacturers in the thin film deposition equipment sector include North Huachuang, Tuo Jing Technology, and Micro Company, each focusing on different aspects of the market [7][41]. - Domestic manufacturers are adopting a multi-dimensional strategy to break through the monopolistic barriers set by international giants, focusing on specialized equipment like HDPCVD and SACVD [25][70]. Group 4: Investment Insights - Investment focus should be on companies that can achieve a closed loop in specific advanced process windows rather than merely replacing single machines [28]. - Companies with dual capabilities in PEALD and Thermal ALD, particularly those that have validated their technology in specific applications, are expected to hold the highest value [29]. - The importance of core components and subsystems, such as plasma sources and vacuum systems, is highlighted as critical for the success of semiconductor equipment [34][36]. Group 5: Conclusion - The U.S. technology blockade has catalyzed a more resilient and innovative semiconductor equipment industry in China, moving from mere substitution to defining next-generation processes [38]. - The journey of domestic equipment manufacturers reflects a broader trend of understanding and meeting the specific needs of Chinese manufacturing, paving the way for long-term value discovery in the semiconductor sector [38].

Core Insights - The official announcement from Jing Sheng Mechanical Electric indicates the successful commissioning of the first 12-inch silicon carbide (SiC) substrate processing pilot line, marking a significant advancement in the company's capabilities and positioning in the global SiC substrate technology landscape [1][2] Company Developments - The establishment of the 12-inch SiC pilot line represents a major achievement in the company's dual-engine development strategy of "advanced materials and advanced equipment," showcasing China's high-end semiconductor equipment manufacturing capabilities [2] - The company has successfully developed a 12-inch conductive silicon carbide crystal through innovative designs in crystal growth temperature fields and gas-phase raw material distribution processes, overcoming critical challenges such as uneven temperature fields and crystal cracking [2] - The company is actively expanding its silicon carbide production capacity, with a project in Shangyu aimed at producing 300,000 pieces of silicon carbide substrates annually, and another project in Penang, Malaysia, for 8-inch silicon carbide substrate industrialization [2][3] Industry Context - SiC is recognized as a core representative of third-generation semiconductor materials, with applications in key industries such as electric vehicles, smart grids, and 5G communications, as well as emerging fields like AR devices and advanced packaging [1] - The production of 12-inch substrates is expected to significantly reduce unit costs in downstream applications, with a 2.5 times increase in chip output compared to 8-inch products, thus providing a new benchmark for cost and efficiency in the industry [1] - The Chinese silicon carbide power module market is projected to reach $4.08 billion by 2031, with a compound annual growth rate (CAGR) of 20.0% in the coming years, indicating strong growth potential for the industry [3]

Core Insights - Jing Sheng Mechanical's subsidiary, Zhejiang Jing Rui SuperSiC, has successfully launched its first 12-inch silicon carbide (SiC) substrate pilot line, achieving full self-research and 100% localization of equipment from crystal growth to processing and testing [1][3] - This development marks a significant advancement for the company, transitioning from a "follower" to a "leader" in global SiC substrate technology, entering a new phase of efficient intelligent manufacturing [1][3] Industry Overview - SiC is recognized as a core representative of third-generation semiconductor materials, characterized by high voltage resistance, high frequency, and high efficiency, with applications in new energy vehicles, smart grids, and 5G communications, as well as emerging applications in AR devices and advanced packaging [3] - The production capacity of 12-inch SiC substrates is approximately 2.5 times greater than that of 8-inch products, significantly reducing unit costs in crystal growth, processing, and polishing, which is seen as a crucial pathway for cost reduction and efficiency improvement in downstream applications [3] Company Developments - The newly established pilot line encompasses the entire process from crystal processing, cutting, thinning, chamfering, grinding, polishing, cleaning, to testing, utilizing domestically produced equipment and self-developed technology [3] - Key equipment such as high-precision thinning machines, chamfering machines, and double-sided precision grinding machines have been developed by the company over many years, achieving industry-leading performance metrics [3] - With this development, the company has established a complete closed loop for 12-inch SiC substrates, effectively addressing the critical equipment bottleneck risk and providing new cost and efficiency benchmarks for the downstream industry [3]

Group 1: Copper Industry - The China Nonferrous Metals Industry Association's Copper Branch opposes "involution" competition in the copper smelting industry [4] - The Grasberg copper mine in Indonesia, the second-largest in the world, has declared "force majeure" due to a landslide, leading to production stoppage [4][5] - The Grasberg Block Cave copper mine is expected to account for 4% of global supply in 2024, and the incident may widen the global copper supply-demand gap to 725,000 tons by 2026, representing 2.6% of total supply [5] Group 2: Semiconductor Industry - CITIC Securities projects that domestic wafer fabs' global market share could increase from 10% to 30%, indicating a potential threefold expansion [9] - The domestic equipment localization rate could rise from 20% to between 60% and 100%, suggesting a growth potential of three to five times [9] - TSMC plans to raise prices for its 2nm process by at least 50%, which may benefit the domestic analog sector, with companies like Saiwei Microelectronics seeing a maximum increase of 14.19% as of September 26 [9] Group 3: Wind Power Industry - After nearly three years of decline, the Chinese wind power value chain has successfully achieved a turnaround through industry self-discipline, with a positive price and profitability environment expected to last through 2025 and beyond [17] - Companies such as Weili Transmission, Mingyang Smart Energy, and Riyue Shares are highlighted as beneficiaries of the wind power industry's recovery [17][18] - Weili Transmission's wind turbine bid average increased by 15.79%, while Mingyang Smart Energy saw a 17.21% increase compared to last year's low [18]

Core Insights - Jing Sheng Electromechanical (300316) experienced a significant stock surge, rising over 15% and reaching a nearly two-year high on September 26, following the announcement of its first 12-inch silicon carbide (SiC) substrate processing pilot line becoming operational at Zhejiang Jing Rui SuperSiC [1][2] Group 1: Company Developments - The newly operational pilot line at Zhejiang Jing Rui SuperSiC marks the achievement of full domestic research and development capabilities across the entire process from crystal growth to processing and testing, indicating a shift from parallel development to leading in global SiC substrate technology [1][2] - The 12-inch SiC products can produce approximately 2.5 times the output of 8-inch products, significantly reducing unit costs in crystal growth, processing, and polishing during large-scale production, which is crucial for lowering downstream application costs [1] Group 2: Industry Context - SiC is recognized as a core representative of third-generation semiconductor materials, widely used in key industries such as new energy vehicles, smart grids, and 5G communications due to its high voltage, high frequency, and high efficiency characteristics [1] - The complete pilot line encompasses all processes including crystal processing, cutting, thinning, chamfering, grinding, polishing, cleaning, and testing, all utilizing domestic equipment and proprietary technology, thus establishing a complete closed loop from equipment to materials for 12-inch SiC substrates [2]