Guosen International·2025-08-12 07:25Investment Rating - The report assigns an IPO-specific rating of 5.9 out of 10 for the company, based on operational performance, industry outlook, valuation, and market sentiment [7]. Core Insights - The company specializes in the research and production of silicon carbide substrates, being one of the first in China to industrialize semi-insulating silicon carbide substrates and further achieve the industrialization of conductive silicon carbide substrates [9]. - The company has established partnerships with over half of the top ten global power semiconductor manufacturers, with applications in electric vehicles, AI data centers, and other fields [9]. - The global silicon carbide substrate market is highly competitive, with the company holding a market share of 16.7%, ranking among the top three manufacturers globally [9]. - The report highlights the significant growth potential in the power semiconductor market, projected to reach USD 19.7 billion by 2030, with a compound annual growth rate of 35.8% from 2024 to 2030 [9]. Financial Overview - The company’s revenue is expected to grow from approximately CNY 417 million in 2022 to CNY 1.768 billion in 2024, with a net profit of CNY 179 million anticipated in the fiscal year 2024 [9]. - The IPO price is set at a maximum of HKD 42.80, with a projected market capitalization of approximately HKD 20.435 billion post-IPO [12][13]. - The report indicates a significant discount of approximately 35.7% compared to the A-share closing price, suggesting a reasonable valuation in the context of the semiconductor sector [13]. Use of Proceeds - The company plans to allocate approximately 70% of the net proceeds from the IPO to expand its production capacity for 8-inch and larger silicon carbide substrates, 20% for enhancing R&D capabilities, and 10% for working capital and general corporate purposes [12].