Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company focuses on deepening design and process collaboration, enhancing its EDA+IP ecosystem through acquisitions [1] - The company has shown stable revenue growth with a CAGR of 32.13% from 2020 to 2024, and its R&D expenses are significant, with rates of 71.1% and 64.8% for 2023 and 2024 respectively [7][31] - The company is positioned as a leading domestic EDA enterprise, with successful acquisitions enhancing its product offerings and technical capabilities [10] Summary by Sections Company Overview - The company's main products include manufacturing EDA, design EDA, device testing systems, and one-stop technology development [17] - The company has completed three acquisitions from 2010 to 2023, indicating a strategy of innovation and acquisition [7][22] - As of Q3 2025, the top six shareholders hold 59.7% of the shares, indicating a concentrated ownership structure [23] Market Data - As of December 15, 2025, the company's current price is 33.79 yuan, with a total market capitalization of approximately 14.70 billion yuan [4] - The company has shown a 12.71% year-on-year revenue growth for the first three quarters of 2025 [30] Financial Performance - The company's revenue for the first three quarters of 2025 reached 3.15 billion yuan, with a net profit of 42 million yuan, reflecting a significant year-on-year increase of 173.46% [30] - The company’s gross margin remains high at 89.1%, with effective control over expenses [31] EDA Market Insights - The global EDA market is expected to grow steadily, with a projected size of approximately 14.55 billion USD in 2025, increasing to 32.15 billion USD by 2034, representing a CAGR of 9.21% [51] - The EDA industry is highly concentrated, with the top three companies holding 74% of the market share [58] Strategic Acquisitions - The company plans to acquire Ruicheng Chip Micro and Naneng Micro in 2025, aiming to become the first listed company in China to achieve deep collaboration between EDA and semiconductor IP [9][10] - The acquisitions are expected to expand the company's revenue scale and profitability [9]

Core Viewpoint - The major shareholders of Chip Origin Co., Ltd. (688521.SH) plan to reduce their holdings, which may impact the company's stock performance in the near term [1][2]. Shareholder Reduction Plans - The shareholders, collectively known as "Xingcheng Investment Parties," hold a total of 7.55% of the company's shares and plan to reduce their holdings by up to 5.2586 million shares, representing a maximum reduction of 1% [1]. - The "Guokai Fund" holds 0.4% of the shares and plans to reduce its holdings by up to 788,600 shares, representing a maximum reduction of 0.15% [1]. - In total, the shareholders plan to reduce up to 6.0472 million shares, which is a maximum reduction of 1.15% [1]. Stock Performance - As of December 1, the stock price of Chip Origin was 153.35 yuan per share, and the maximum cash that could be raised from the share reduction is estimated to be 9.27 billion yuan [1]. - The stock price has increased significantly, rising from 52.43 yuan per share at the beginning of 2025 to 153.35 yuan per share, marking a 192.49% increase [2]. Financial Performance - For the first three quarters of 2025, Chip Origin reported a revenue of 2.255 billion yuan, a year-on-year increase of 36.64% [2]. - The company continued to experience losses, with a net profit loss of 347 million yuan, although this represented a year-on-year reduction in losses of 12.42% [2]. Order Backlog and Growth Potential - In Q3 2025, the company achieved a record high revenue of 1.281 billion yuan, with a quarter-on-quarter increase of 119.26% and a year-on-year increase of 78.38% [3]. - The order backlog has remained high for eight consecutive quarters, reaching 3.286 billion yuan by the end of Q3 2025, with 83.52% of the orders coming from system manufacturers, large internet companies, cloud service providers, and automotive companies [3]. - Nearly 90% of the order backlog is from one-stop chip customization services, with an expected conversion rate of about 80% within a year, providing strong support for future revenue growth [3].

Core Viewpoint - The company, Heshun Petroleum, is experiencing significant stock price movement and is planning a strategic acquisition to enhance its business model and market position in the semiconductor industry [1][2][4][8]. Trading Information Summary - Heshun Petroleum's stock closed at 30.59 yuan on November 21, 2025, up 9.13% from the previous week, with a market cap of 5.259 billion yuan [1]. - The stock reached a peak of 35.88 yuan on November 20, 2025, marking a near one-year high, and recorded two instances of limit-up trading without any limit-down occurrences [1][2]. Shareholder Changes - The actual controllers, Yan Ximing and Zhao Zunming, along with their concerted actors, plan to transfer a total of 6% of the company's shares (10,314,360 shares) to Chen Wanyi at a price of 22.932 yuan per share, totaling approximately 236.53 million yuan [3][8]. - Following this transfer, the controlling shareholders' stake will decrease from 66.5817% to 60.5817%, without changing the company's control [3]. Institutional Research Highlights - The company intends to acquire at least 34% of Shanghai Kuixin Integrated Circuit Design Co., Ltd. and will control 51% of the voting rights through a voting rights entrustment [4][8]. - The valuation for 100% of Kuixin's equity is capped at 1.588 billion yuan, with the expected transaction amount not exceeding 540 million yuan [4][8]. Company Announcement Summary - The board of directors approved the acquisition of Kuixin Technology, which is expected to enhance Heshun Petroleum's capabilities in the semiconductor sector, particularly in high-speed interface IP products [8]. - The company plans to hold a shareholder meeting on December 5, 2025, to discuss changes in business scope and amendments to the articles of association [8][9]. Industry Context - Kuixin Technology operates in the semiconductor IP sector, focusing on high-speed interface IP products, with a strong customer base in SSD and AI chip markets [4][5][7]. - The company aims to become a leader in the domestic interconnect IP and Chiplet market, which is projected to be significantly larger than the IP market alone [7].

Core Viewpoint - Heshun Petroleum (603353) is gaining investor interest due to its plan to acquire control of semiconductor IP company Shanghai Kuixin Integrated Circuit Design Co., Ltd. (Kuixin Technology), despite facing performance pressures and the target company's projected losses in the near term [1][3][4]. Group 1: Acquisition Details - Heshun Petroleum plans to acquire at least 34% of Kuixin Technology's equity through cash and control 51% of the voting rights via a voting rights entrustment [3]. - The total valuation of Kuixin Technology is estimated at no more than 1.588 billion yuan, with the final transaction amount expected to be under 540 million yuan [3]. - The controlling shareholders of Heshun Petroleum will transfer 10.3144 million shares, representing 6% of the total share capital, to Kuixin Technology's controlling shareholder at a price of 22.932 yuan per share, totaling 237 million yuan [3]. Group 2: Financial Performance - Kuixin Technology is projected to report losses in net profit for the first half of 2025, with revenues of approximately 146 million yuan, 193 million yuan, and 110 million yuan for 2023, 2024, and the first half of 2025, respectively [5]. - Heshun Petroleum's revenue and net profit have been declining, with revenues of approximately 3.994 billion yuan, 3.273 billion yuan, and 2.812 billion yuan from 2022 to 2024, and corresponding net profits of approximately 104 million yuan, 52.23 million yuan, and 29.27 million yuan [6]. Group 3: Strategic Outlook - The acquisition represents a cross-industry merger, as Heshun Petroleum's main business is in refined oil retail and wholesale, while Kuixin Technology focuses on integrated circuit IP and Chiplet product development [4]. - Heshun Petroleum aims to leverage the semiconductor IP sector's growth potential to find new revenue streams and ensure sustainable development [6][7].

Core Viewpoint - Hunan Heshun Petroleum Co., Ltd. plans to acquire control of Shanghai Kuixin Integrated Circuit Design Co., Ltd. through cash purchase and capital increase, marking its entry into the semiconductor industry, specifically in the high-barrier semiconductor IP and Chiplet sector [2][3] Group 1: Acquisition Details - Heshun Petroleum intends to acquire no less than 34% of Kuixin Technology's equity and control 51% of its voting rights through a voting rights entrustment [3] - The post-transaction valuation of Kuixin Technology is set at no more than 1.588 billion yuan, with the total transaction amount not exceeding 540 million yuan, which is considered low compared to its potential technical value [3] - Kuixin Technology, established in 2021, specializes in high-speed interface IP and Chiplet solutions, with its technology covering process nodes from 5nm to 55nm [3] Group 2: Integration Mechanisms - Heshun Petroleum has established multiple mechanisms to ensure effective integration, including performance commitments, personnel dispatch, and equity binding [4] - From 2025 to 2028, Kuixin Technology is required to achieve specific revenue targets, with a minimum of 3 billion yuan in 2025 and increasing to 7.5 billion yuan by 2028 [4] - The controlling shareholder of Kuixin Technology will acquire 6% of Heshun Petroleum's shares, with conditions for unlocking shares tied to performance commitments [4] Group 3: Financial Position and Market Context - Heshun Petroleum reported a significant increase in operating cash flow, reaching 429 million yuan in the first three quarters of 2025, a year-on-year increase of 260.4% [5] - The company's revenue for the first three quarters of 2025 was 2.126 billion yuan, a slight decrease of 0.13%, with net profit down 49.44% to approximately 21.81 million yuan [5] - The domestic semiconductor IP market is growing at over 20% annually, with Chiplet technology gaining traction due to AI computing demands, positioning Kuixin Technology to benefit from industry growth [5]

Core Viewpoint - Heshun Petroleum (603353) is gaining investor interest due to its plan to acquire a controlling stake in semiconductor IP company Shanghai Kuixin Integrated Circuit Design Co., Ltd. (Kuixin Technology), leading to a significant increase in its stock price, despite the target company's projected losses in the near term [1][3][4]. Group 1: Acquisition Details - Heshun Petroleum plans to acquire at least 34% of Kuixin Technology's equity through cash and control 51% of the voting rights, with the total transaction amount not exceeding 540 million yuan [3]. - The valuation of Kuixin Technology is set at no more than 1.588 billion yuan, with the expected transfer price for shares held by Heshun's actual controllers at 2.37 billion yuan [3][4]. Group 2: Financial Performance of Kuixin Technology - Kuixin Technology is projected to report losses in net profit for the first half of 2025, with revenues of approximately 146 million yuan, 193 million yuan, and 110 million yuan for 2023, 2024, and the first half of 2025, respectively [5]. - The company has performance commitments for 2025 to 2028, with expected revenues of at least 300 million yuan, 450 million yuan, 600 million yuan, and 750 million yuan, alongside positive net profits for those years [5]. Group 3: Heshun Petroleum's Financial Situation - Heshun Petroleum's revenues have been declining, with figures of approximately 3.994 billion yuan, 3.273 billion yuan, and 2.812 billion yuan for 2022, 2023, and 2024, respectively, and a significant drop in net profit [6]. - In the first three quarters of the current year, the company reported revenues of about 2.126 billion yuan, a slight decrease of 0.13% year-on-year, and a net profit decline of 49.44% [6]. Group 4: Industry Outlook - The semiconductor IP sector is viewed as having strong growth potential, driven by technological innovation and market demand, which Heshun Petroleum aims to leverage for future growth [6].

Core Viewpoint - The company, Heshun Petroleum, plans to acquire at least 34% of the equity of Shanghai Kuixin Integrated Circuit Design Co., Ltd. (Kuixin Technology) through cash payment, aiming to gain control over 51% of the voting rights of the target company [1][2] Group 1: Company Overview - Heshun Petroleum is deeply engaged in the refined oil distribution sector, establishing a complete industrial chain ecosystem that includes retail gas stations, refined oil storage, logistics distribution, and wholesale [1] - The company is the first in Hunan Province to obtain national wholesale qualifications for refined oil, indicating its strategic focus on expanding business into surrounding provinces [1] Group 2: Target Company Overview - Kuixin Technology, established in 2021, specializes in high-speed interface IP and Chiplet solutions, filling a domestic gap and gradually breaking foreign monopolies [2] - The company has a complete product matrix for high-speed interface IP and has a technological edge over some peers, with its latest UCIe Chiplet interconnect IP already utilized in domestic high-performance chips [2] Group 3: Financial Commitments and Projections - The target company has committed to achieving audited revenue of no less than 300 million, 450 million, 600 million, and 750 million yuan from 2025 to 2028, with specific revenue targets for IP and high-speed interconnect products [2] - The net profit attributable to the parent company for the same period is expected to be positive each year [2] Group 4: Transaction Details - The valuation of 100% equity of the target company is capped at 1.588 billion yuan, with the final transaction amount expected to be no more than 540 million yuan [3] - Heshun Petroleum's management believes that the semiconductor IP industry has good development prospects and aims to strategically position itself in this field to seek new growth points for future sustainability [3]

Core Viewpoint - Heshun Petroleum plans to acquire at least 34% of Kuixin Technology's equity, aiming to gain control over the company through a combination of equity purchase and capital increase, with an estimated transaction value not exceeding 540 million yuan [1][2]. Group 1: Acquisition Details - Heshun Petroleum signed a control acquisition intention agreement with Kuixin Technology and its actual controller, Chen Wanyi, to ensure control over 51% of Kuixin Technology's voting shares [1]. - The transaction will allow Heshun Petroleum to appoint two-thirds of the board members at Kuixin Technology and control its operational, personnel, and financial decisions [1]. - The total equity value of Kuixin Technology is estimated to be no more than 1.588 billion yuan, with the final transaction amount expected to be under 540 million yuan [1]. Group 2: Kuixin Technology Overview - Kuixin Technology, established in 2021, focuses on high-speed interface IP and Chiplet solutions, filling a domestic gap and gradually breaking foreign monopolies [2]. - The company has developed a complete product matrix for high-speed interface IP, covering protocols such as UCIe, HBM, ONFI, LPDDR, PCIe, eDP, and USB, with performance metrics comparable to leading foreign companies [2]. - Kuixin Technology has established strategic partnerships with international foundries like TSMC and Samsung, developing interface IP applicable from 5nm to 55nm processes [2]. Group 3: Performance Commitments - The performance commitment period for Kuixin Technology spans from 2025 to 2028, with audited revenue targets set at no less than 300 million yuan, 450 million yuan, 600 million yuan, and 750 million yuan for each respective year [3]. - Specific revenue targets for IP and high-speed interconnect products are set at no less than 105 million yuan, 157.5 million yuan, 210 million yuan, and 262.5 million yuan for the same years [3]. - The net profit for Kuixin Technology is expected to be positive for each year from 2025 to 2028 [3]. Group 4: Heshun Petroleum's Strategic Position - Heshun Petroleum operates in the refined oil circulation sector, with a complete industry chain including retail, storage, logistics, and wholesale [4]. - The company is expanding its business beyond Hunan province and is accelerating its layout in the ultra-fast charging sector, leveraging existing gas station resources [4]. - Management believes that the semiconductor IP industry has significant growth potential, prompting the strategic acquisition of Kuixin Technology to seek new performance growth points [4].

Core Viewpoint - Heshun Petroleum plans to diversify into the semiconductor industry by acquiring a significant stake in Shanghai Kuixin Integrated Circuit Design Co., aiming to find new growth opportunities as its traditional gas station business slows down [1][2][3]. Group 1: Business Transition - Heshun Petroleum's main business includes gas station retail, oil storage, logistics, and wholesale, primarily dealing with diesel and gasoline [2]. - The company intends to acquire at least 34% of Kuixin Technology's equity and control 51% of its voting rights, allowing it to influence the company's operations and financial decisions [2][4]. - The acquisition is part of a strategic move to enter the high-barrier semiconductor IP and Chiplet market, which is expected to provide new profit growth points [3][4]. Group 2: Financial Performance of Target Company - Kuixin Technology, established in 2021, has incurred losses exceeding 80 million yuan over two and a half years, with projected revenues of 146 million yuan, 193 million yuan, and 110 million yuan for 2023, 2024, and the first half of 2025, respectively [4][5]. - The company has a high debt ratio of 65.29% as of June 2025, with total assets of 224 million yuan and equity of 77.89 million yuan [5][7]. - Despite its financial struggles, Kuixin Technology has developed a comprehensive product matrix for high-speed interface IP and Chiplet solutions, serving over 60 clients in various sectors, including AI and data centers [4][5]. Group 3: Performance Commitments - The acquisition agreement includes performance commitments, with Kuixin Technology promising cumulative revenues of at least 2.1 billion yuan over four years from 2025 to 2028 [8]. - The annual revenue targets are set at 300 million yuan, 450 million yuan, 600 million yuan, and 750 million yuan for the respective years, with net profits expected to be positive [8]. Group 4: Market Reaction - Following the announcement, Heshun Petroleum's stock price surged by 59%, closing at 28.03 yuan per share on November 13, up from 17.62 yuan on October 27 [10]. - Analysts caution that the significant leap from oil products to semiconductors may involve speculative elements, urging investors to monitor the transaction's evaluation report and performance commitments closely [10].

Core Viewpoint - The company, Hunan Heshun Petroleum Co., Ltd., plans to acquire at least 34% of the equity in Shanghai Kuixin Integrated Circuit Design Co., Ltd. to gain control over the company, aiming to diversify its business into the semiconductor industry, which is seen as having significant growth potential [2][3]. Group 1: Acquisition Details - The acquisition will allow the company to control 51% of the voting rights in Kuixin Technology, enabling it to influence operational, personnel, and financial decisions [2]. - The total valuation of Kuixin Technology is capped at 1.588 billion yuan, with the expected transaction amount not exceeding 540 million yuan [2]. - The final transaction price will be determined based on an assessment by a qualified asset evaluation agency as per the Securities Law of the People's Republic of China [2][9]. Group 2: Strategic Intent - The management believes that the semiconductor IP sector has promising development prospects and aims to find new growth points for the company's future sustainability [3]. - Kuixin Technology, established in 2021, focuses on high-speed interface IP and Chiplet solutions, filling a domestic gap and gradually breaking foreign monopolies [3][4]. Group 3: Kuixin Technology's Capabilities - Kuixin Technology is one of the few companies in China that can provide a complete Chiplet solution, enhancing computing performance and reducing latency through its UCIe protocol [4]. - The company has developed a strategic cooperation network with international foundries like TSMC and Samsung, covering process nodes from 5nm to 55nm, and its products are widely used in data centers, AI, automotive electronics, and consumer electronics [3][4]. Group 4: Product and Service Offerings - Kuixin Technology has delivered multiple IP products to over 60 clients, including major players in the AI and data center sectors, with a strong emphasis on high performance, low power consumption, and compatibility [5]. - The business model includes providing semiconductor IP to chip design companies and foundries, offering ASIC/Design services, and Chiplet solutions through various commercial arrangements [6].