Core Viewpoint - The company, as a supplier of semiconductor electroplating solutions and photoresists, is positioned to benefit from the expansion of storage chip production capacity, which will increase material procurement volumes [1] Group 1 - The company's products are directly used in the electroplating and lithography processes of storage chip manufacturing [1] - The acceleration of domestic storage chip localization will further enhance the company's integration within the supply chain of domestic storage chip manufacturers through a dual-process collaboration of "electroplating + lithography" [1]

1. Report Industry Investment Rating - No relevant content found 2. Core View of the Report - The market opportunity window is open, and the company's performance elasticity is expected to be realized due to the rapid development of Chinese local memory chip manufacturers, the urgent demand for supply - chain security, and the technology and capacity restrictions from certain countries [25][26] - The company's performance shows "growth" characteristics, with the gross margin of the main business remaining stable, the proportion of the growing silicon component business in total revenue exceeding that of large - diameter silicon materials, and the integration advantage of "from silicon materials to silicon components" gradually emerging [27] 3. Summary According to the Directory 3.1 Research Basic Situation - The research object is Shenggong Co., Ltd., belonging to the semiconductor industry. The reception time was September 26, 2025, and the listed company's reception personnel were the board secretary and the chief financial officer, Chang Liang [16] 3.2 Detailed Research Institutions - The research institutions include fund management companies such as HSBC Jintrust Fund, E Fund Management Co., Ltd., etc.; other financial companies like Nanyin Wealth Management; investment companies such as Fenghuo Investment and Chongyang Investment; securities companies like Guotai Haitong Securities and Guoxin Securities; and asset management companies such as Guotai Haitong Asset Management and Origin Asset [17][18] 3.3 Research Institutions Proportion - No relevant content found 3.4 Main Content Information - **Relationship between Company Performance and Memory Chip Industry**: The company's silicon component products are made from large - diameter silicon materials and are core consumables in the plasma etching process of memory chip manufacturers. The replacement frequency is related to the production line's operating rate and etching intensity. With the rapid development of Chinese local memory chip manufacturers, the progress of domestic chip manufacturing, and the restrictions from certain countries, the company's performance elasticity is expected to be realized [25][26] - **Trend Changes in Company Performance**: In the first half of 2025, the gross margin of the company's main business, large - diameter silicon materials, remained stable. The silicon component business, a growing business, accounted for more than large - diameter silicon materials in total revenue, with a stable and rising gross margin. The integration advantage of "from silicon materials to silicon components" is emerging, highlighting the company's "growth" characteristics [27] - **Industry Changes**: Japanese manufacturers with global competitive advantages in the 8 - inch lightly doped polished silicon wafer field are shifting more production capacity to 12 - inch lightly doped polished silicon wafers. Considering the potential market demand for 8 - inch lightly doped silicon wafers in China, the company, with relevant technology and production capacity, is expected to optimize variable costs and improve its competitive position [28][29] - **Expansion Progress of Silicon Component Business**: The company will expand production based on downstream customer orders, maintain the yield rate and gross margin, and keep a high - end product sales structure. In the first half of the year, the expansion policy of "stability" achieved good results [31][32][33]

Investment Rating - The report assigns a rating of "Accumulate" to the company, indicating a positive outlook for the stock price in the near term [4]. Core Insights - The company has shown continuous improvement in profitability, with Q2 revenue reaching a record high for a single quarter, achieving 154 million yuan, a year-on-year increase of 35.29% [1][2]. - The overall gross margin for the first half of 2025 was 25.02%, reflecting a slight year-on-year increase, while the net margin was -2.02%, also showing improvement [2]. - The company is focusing on high-end integrated circuit testing capacity to meet the demands of existing and potential customers, with a strong emphasis on R&D to maintain its competitive edge [2][8]. Financial Performance Summary - For the first half of 2025, the company reported revenue of 284 million yuan, a year-on-year increase of 23.09%, and a net profit attributable to shareholders of -0.07 million yuan, an increase of 16.38% year-on-year [1]. - The projected revenue for 2025 is estimated at 604 million yuan, with a growth rate of 23.8% year-on-year [1]. - The company is expected to achieve a net profit of 22 million yuan by 2027, with a significant increase in EPS from -0.09 yuan in 2025 to 0.11 yuan in 2027 [1][9]. Business Strategy and Market Position - The company is implementing a "one body, two wings" strategy, focusing on wafer processing and intelligent sensing technology to enhance its core competitiveness in the integrated circuit field [3][9]. - The revenue from the wafer thinning business increased by 111.61% year-on-year, indicating a significant improvement in production efficiency and product yield [3]. - The company is actively developing testing solutions for various applications, including industrial control, high-performance computing, automotive electronics, and AI, positioning itself to benefit from trends in AI computing and automotive intelligence [8][9].

Investment Rating - The industry investment rating is "Overweight" [1] Core Views - The domestic storage giants, CXMT and YMTC, have both achieved quarterly revenues exceeding 1 billion USD in Q1 2025, marking a significant milestone in breaking the long-standing international monopoly in the storage market [3][12] - The global storage market is expected to reach a scale of 167 billion USD in 2024, with a projected growth of 12% for NAND Flash and 15% for DRAM Bit capacity in 2025, driven by the acceleration of AI server deployments and growth in consumer electronics [18][27] - CXMT is expected to increase its DRAM production capacity by nearly 50% this year, with market share projected to rise from 6% to 8% by year-end [4][20] Summary by Sections Market Performance Review - During the week of June 16 to June 20, 2025, the Shanghai Composite Index fell by 0.57%, while the Shenzhen Component Index and the ChiNext Index decreased by 0.46% and 0.88%, respectively. The semiconductor sector, represented by the Shenwan Electronics Index, saw a decline of 2.17% [3][29] - The best-performing sector was LED with a decline of 0.46%, while integrated circuit packaging and testing showed a weaker performance with a drop of 3.5% [29] Key Developments in the Industry - CXMT is transitioning its production from DDR4/LPDDR4 to DDR5/LPDDR5, with market shares for DDR5/LPDDR5 expected to rise from approximately 1% to 7% and 9%, respectively [20] - YMTC has successfully achieved mass production of 294-layer 3D NAND and is advancing towards 300-layer NAND development, enhancing its competitive edge in the global market [5][13] Company-Specific Insights - CXMT has become a leader in the domestic DRAM industry, with its production base in Hefei continuously increasing capacity and improving technology to align with international standards [12][19] - The successful emergence of CXMT and YMTC is expected to inspire other domestic storage companies, leading to technological upgrades and development across the entire industry [4][19]