Huitong Energy(SH:600605) Jing Ji Guan Cha Wang·2025-08-13 08:03Core Viewpoint - Huitong Energy plans to acquire a 7.43% stake in Xinghua Chip through equity transfer and capital increase, marking its first direct investment in the semiconductor sector, reflecting its strategic shift towards hard technology [1][2] Group 1: Company Overview - Huitong Energy, originally a state-owned enterprise, has shifted its focus from wind power to real estate and now aims to invest in the semiconductor industry [2] - The company reported a revenue of 137 million yuan and a net profit of 95.1 million yuan for the year 2024, with cash reserves of 1.46 billion yuan at year-end [2] Group 2: Investment Details - The investment in Xinghua Chip is part of a two-step transaction, with Huitong Energy acquiring shares at a low valuation of 1.5 yuan per share, and plans to further invest at a maximum price of 2 yuan per share once production targets are met [6] - Xinghua Chip, established in November 2022, specializes in semiconductor photomask manufacturing and has achieved a monthly production capacity of 1,350 masks as of April 2024, with a projected annual capacity of 36,000 masks [2] Group 3: Industry Context - The domestic semiconductor photomask market is heavily reliant on imports, with only 10% of photomasks being produced locally as of the end of 2023, and only 3% for high-end photomasks [3] - The photomask is a critical component in semiconductor manufacturing, accounting for approximately 13% of the total material cost of chips, second only to silicon wafers [2][3] Group 4: Key Personnel - Zhang Rujing, the founder of Xinghua Chip and a prominent figure in the semiconductor industry, has previously established in-house photomask production facilities for major companies like SMIC [4][5] - His insights highlight the challenges faced by domestic companies in the semiconductor supply chain, particularly in the upstream segments [4] Group 5: Market Dynamics - The advanced photomask market is dominated by foreign companies, with significant technological barriers, while domestic firms are gradually advancing from mature to advanced processes [5] - The financial performance of leading photomask manufacturers, such as Photronics, indicates the lucrative nature of the advanced photomask segment, with revenues reaching $665 million in the first three quarters of fiscal year 2023 [4]