Investment Rating - The report initiates coverage with a "Buy" rating for the company, setting a target price of 27.9 RMB based on a 90x PE for 2026 [4]. Core Insights - The company is one of the few integrated manufacturers of semiconductor silicon epitaxial wafers in China, capable of the entire production process from crystal growth to substrate formation and epitaxial growth. In H1 2025, the company achieved revenue of 625 million RMB, a year-on-year increase of 15%, and a net profit attributable to shareholders of 59.71 million RMB, up 24% year-on-year, indicating a recovery in revenue and profit growth [2][20]. - The global semiconductor market is showing signs of recovery, with a market size of 346 billion USD in H1 2025, reflecting a year-on-year growth of 19%. The WSTS has revised its forecast for the entire year of 2025 to 728 billion USD, expecting a 15% year-on-year increase, which is 4 percentage points higher than previous expectations [2][39]. - The company focuses on power devices and analog chips, benefiting from the recovery in end-user demand in automotive electronics and industrial sectors. The global discrete device market is expected to reach 46.1 billion USD by 2028, with a CAGR of 8.5% from 2024 to 2028 [2][39]. Summary by Sections 1. Integrated Semiconductor Silicon Epitaxial Wafer Supplier - The company has established itself as a key supplier in the semiconductor industry, providing high-quality silicon epitaxial wafers used in various applications, including power devices and analog chips [14][18]. - The company's revenue and performance have been influenced by the cyclical nature of the semiconductor industry, with a notable recovery in H1 2025 [20][24]. 2. Demand Driven by Power Devices and Analog Chips - The semiconductor materials market is experiencing a mild recovery, with the global semiconductor materials market expected to reach 76 billion USD in 2025, growing by 8.4% year-on-year [30]. - The company has a strong overseas presence, with 86% of its revenue coming from international markets, indicating a robust global sales network [25][30]. 3. Strategic Focus on 8-inch and 12-inch Wafer Production - The company is expanding its production capacity, particularly in 12-inch wafers, to meet the growing demand driven by AI and HPC sectors. The IPO in 2024 raised 1.4 billion RMB to fund these initiatives [3][4]. - The company aims to enhance its product structure by focusing on advanced process logic chips and automotive-grade products, which are expected to improve its competitive position [2][3]. 4. Profit Forecast and Investment Recommendations - The company is projected to achieve revenues of 1.31 billion RMB, 1.62 billion RMB, and 1.97 billion RMB in 2025, 2026, and 2027, respectively, with corresponding net profits of 160 million RMB, 204 million RMB, and 260 million RMB, indicating strong growth potential [4][8]. - The report highlights the company's advantageous customer structure, which is expected to contribute to margin improvements as the 12-inch epitaxial wafer capacity comes online [4][8].
上海合晶（688584）：公司深度：一体化布局，差异化竞争的半导体硅外延片供应商