Investment Rating - The report suggests a cautious subscription for the company’s IPO [3]. Core Insights - The company is a global leader in the silicon carbide (SiC) epitaxy industry, primarily engaged in the R&D, mass production, and sales of SiC epitaxial chips and components used in manufacturing SiC semiconductor devices [2]. - The company’s SiC epitaxial chips are utilized in power devices, which have widespread applications in electric vehicles, charging infrastructure, renewable energy, and energy storage systems [2]. - According to a report by ZhiShi Consulting, the company is the largest supplier of SiC epitaxy by sales volume globally since 2023, with a market share exceeding 30% in 2024 [2]. - The global market for SiC power semiconductor devices is projected to grow significantly from USD 600 million in 2020 to USD 2.6 billion in 2024, representing a compound annual growth rate (CAGR) of 45.4% [2]. - By 2029, the sales of SiC power semiconductor devices are expected to reach USD 13.6 billion, with a CAGR of 39.9% from 2024 to 2029 [2]. - The penetration rate of SiC power semiconductor devices in the global power semiconductor market is anticipated to increase from 1.3% in 2020 to 4.9% in 2024, and further to 17.1% by 2029 [2]. Financial Performance - The company's revenue for the years 2022, 2023, and 2024, as well as for the nine months ending September 30, 2024, are projected to be RMB 440.7 million, RMB 1,142.5 million, RMB 974.3 million, RMB 808.3 million, and RMB 535.1 million respectively [3]. - The net profit for the same periods is expected to be RMB 127.5 million, RMB 107.5 million, RMB 165.1 million, RMB 118.4 million, and RMB 21.1 million respectively [3]. - Starting in 2024, the company's financial performance may be adversely affected by competitive pressure leading to price declines and weakened demand due to a sluggish downstream market [3]. - The company's Hong Kong stock issuance price is set at HKD 76.26 per share, corresponding to a price-to-sales (PS) ratio of 29.3 times for 2024, which is in the mid-range of the industry [3].

Investment Rating - The report suggests a cautious subscription for the company’s IPO [3]. Core Insights - The company is a global leader in the silicon carbide (SiC) epitaxy industry, focusing on the research, production, and sales of SiC epitaxial chips and components used in semiconductor devices [2]. - The company’s SiC epitaxial chips are utilized in power devices, which have widespread applications in electric vehicles, charging infrastructure, renewable energy, and energy storage systems [2]. - According to a report by ZhiShi Consulting, the company is the largest supplier of SiC epitaxy by sales volume since 2023, with a market share exceeding 30% in 2024 [2]. - The global market for SiC power semiconductor devices is projected to grow significantly, with sales increasing from USD 600 million in 2020 to USD 2.6 billion in 2024, representing a compound annual growth rate (CAGR) of 45.4% [2]. - By 2029, the sales of SiC power semiconductor devices are expected to reach USD 13.6 billion, with a CAGR of 39.9% from 2024 to 2029 [2]. - The penetration rate of SiC power semiconductor devices in the global power semiconductor market is anticipated to rise from 1.3% in 2020 to 4.9% in 2024, and further to 17.1% by 2029 [2]. Financial Performance - The company's revenue for the years 2022, 2023, and 2024, as well as for the nine months ending September 30, 2024, are projected to be RMB 440.7 million, RMB 1,142.5 million, RMB 974.3 million, RMB 808.3 million, and RMB 535.1 million respectively [3]. - The net profit for the same periods is expected to be RMB 127.5 million, RMB 107.5 million, RMB 165.1 million, RMB 118.4 million, and RMB 21.1 million respectively [3]. - Starting in 2024, the company's financial performance is anticipated to be negatively impacted by competitive market pressures leading to price declines and weakened demand in downstream markets [3]. - The company's Hong Kong IPO price is set at HKD 76.26 per share, corresponding to a price-to-sales (PS) ratio of 29.3 times for 2024, which is considered to be in the middle range within the industry [3].