USC(SH:688403) Xin Lang Cai Jing·2025-10-30 15:28Core Viewpoint - Huicheng Co., Ltd. is a leading player in the display driver chip packaging and testing industry, with significant growth potential in the DRAM storage packaging sector due to strategic investments and partnerships [1][5][6]. Group 1: Company Overview - Huicheng Co., Ltd. was established on December 18, 2015, and went public on August 18, 2022, on the Shanghai Stock Exchange, with its headquarters in Hefei, Anhui Province [1]. - The company specializes in the manufacturing of gold bump packaging for display driver chips and offers comprehensive packaging and testing services across the entire process [1]. Group 2: Financial Performance - For Q3 2025, Huicheng reported a revenue of 1.295 billion yuan, ranking 6th in the industry, while the industry leader, Changdian Technology, achieved 28.669 billion yuan [2]. - The net profit for the same period was 124 million yuan, placing the company 7th in the industry, with the top performer, Tongfu Microelectronics, reporting 999 million yuan [2]. Group 3: Financial Ratios - As of Q3 2025, Huicheng's debt-to-asset ratio was 28.25%, lower than the industry average of 40.98% and down from 30.96% the previous year [3]. - The gross profit margin for Q3 2025 was 22.62%, higher than the industry average of 20.20% and an increase from 21.10% in the previous year [3]. Group 4: Shareholder Information - As of September 30, 2025, the number of A-share shareholders increased by 15.93% to 23,500, with an average holding of 36,400 circulating A-shares, up 27.82% [5]. - Hong Kong Central Clearing Limited is the second-largest shareholder, holding 40.3715 million shares, an increase of 21.9443 million shares from the previous period [5]. Group 5: Strategic Initiatives - The company is expanding into the DRAM storage packaging business through strategic investments in Xinfeng Technology and partnerships with East China Technology [5]. - The collaboration with East China Technology aims to cover the entire LPDDR series packaging, while Xinfeng Technology plans to increase its DRAM packaging capacity from 20,000 wafers per month to 60,000 by the end of 2027 [5]. Group 6: Market Outlook - Analysts expect Huicheng's revenue to reach 1.78 billion yuan, 2.05 billion yuan, and 2.4 billion yuan for the years 2025, 2026, and 2027, respectively, with net profits projected at 190 million yuan, 250 million yuan, and 320 million yuan [5]. - The company is anticipated to benefit from the recovery in consumer electronics demand and an increase in domestic market share for DDIC packaging [6].