Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [1][21]. Core Insights - The company achieved a revenue of 1.187 billion yuan in H1 2025, representing a year-on-year increase of 58.20%. The gross margin was 28.16%, with a slight increase of 0.37 percentage points year-on-year. However, the net profit attributable to the parent company was a loss of 295 million yuan [5]. - The report highlights a recovery in demand, driven by the gradual completion of inventory destocking in the downstream market and the ramp-up of new products in computing and automotive sectors, which is expected to lead to performance recovery [5]. - The semiconductor industry is entering an upturn, with accelerated domestic substitution, particularly in the analog chip market, where domestic manufacturers are expected to experience a new growth phase [5]. - The company is focusing on high-growth areas such as computing, automotive electronics, and renewable energy, with a diverse product portfolio that includes over 3,200 analog product models [5]. - The company is transitioning towards a comprehensive semiconductor solution provider through both organic growth and strategic acquisitions, enhancing operational efficiency and scale [5]. Financial Summary - For H1 2025, the company reported a revenue of 1.187 billion yuan, with a year-on-year growth of 58.20%. The net profit attributable to the parent company was a loss of 295 million yuan [5]. - The forecast for 2025-2027 indicates a gradual recovery in net profit, with projections of -379 million yuan in 2025, 19 million yuan in 2026, and 213 million yuan in 2027 [6]. - The company’s gross margin is expected to improve from 27.3% in 2024 to 37.3% in 2027, reflecting a positive trend in profitability [6].

Core Viewpoint - Jiewater Microelectronics Co., Ltd. (stock code 688141.SZ) is planning to list on the Hong Kong Stock Exchange, despite facing a situation of increasing revenue but decreasing profits, with a total loss of 1.1 billion yuan over the past two years [1][9]. Company Overview - Founded in 2013, Jiewater operates as a virtual IDM (Integrated Device Manufacturer) specializing in analog integrated circuit design, providing a wide range of products for various applications [3][4]. - The company was listed on the Shanghai Stock Exchange on December 23, 2022, with an initial share price of 38.26 yuan, reaching a market capitalization of 22.675 billion yuan on the first day [3][4]. Financial Performance - Jiewater's revenue from 2022 to 2024 was 1.448 billion, 1.297 billion, and 1.679 billion yuan, respectively, with a compound annual growth rate of 7.69%. However, the net profit for the same period was -136 million, -533 million, and -611 million yuan, leading to a total loss of 1.1 billion yuan [9]. - The company experienced a significant decline in market capitalization, dropping by 40.7% from its peak of over 25 billion yuan in April 2024 to approximately 13.447 billion yuan by June 2025 [4][9]. Market Position - In 2024, Jiewater ranked eighth globally and fourth among Chinese companies in terms of revenue from power management integrated circuits [5]. - The company also ranked sixth globally and second in China for DC-DC integrated circuits, indicating a strong market presence despite recent financial struggles [6]. R&D and Investment - Jiewater has significantly increased its R&D expenditures, which were 305 million, 499 million, and 619 million yuan over the past three years, representing a high proportion of its revenue [9]. - The funds raised from the upcoming IPO will primarily be used for enhancing technology research and development, expanding product offerings, and strategic investments [15]. Shareholder Structure - Major shareholders include Zhou Xun Wei and Huang Bi Liang, who collectively hold approximately 40.94% of the company. Hubble Investment remains the largest institutional investor with a 3.03% stake, having not reduced its holdings since the company's listing [11][14]. - Intel's subsidiary has been reducing its stake in Jiewater, having decreased its holdings by 1.76% throughout 2024 [12].

Core Viewpoint - Jiewa Microelectronics Co., Ltd. has submitted its listing application to the Hong Kong Stock Exchange, marking the official launch of its A+H dual listing plan, aiming to enhance its global presence and attract international investors [1][6]. Group 1: Company Overview - Jiewa was established in 2013 and is one of the first domestic companies to implement a virtual IDM model in the analog integrated circuit design sector [2]. - The company focuses on power management and signal chain chips, utilizing its proprietary BCD process technology platform for chip design and manufacturing [2][4]. - As of December 31, 2024, Jiewa has nearly 2,200 product models available, widely used in various applications including automotive electronics, communication devices, and renewable energy [2]. Group 2: Market Position - In the Chinese analog integrated circuit market, Jiewa ranks eighth globally and fourth among Chinese manufacturers in terms of power management revenue for 2024 [2]. - In the communications market, Jiewa ranks fifth globally and second domestically based on power management revenue for 2024 [3]. - In the computing and storage market, Jiewa holds the sixth position globally and second position domestically for power management revenue in 2024 [3]. Group 3: Research and Development - Jiewa has significantly increased its R&D investment, reaching 619 million yuan in 2024, a year-on-year increase of 24.02% [4]. - In the first quarter of 2025, R&D investment totaled 191 million yuan, reflecting a 36.18% year-on-year growth [4]. - The company has successfully launched products in emerging application areas, including high-voltage PMIC chips for solar applications and various PoE Ethernet power supply chips [4][5]. Group 4: Strategic Moves - Jiewa's recent acquisition of Tianyi Hexin for 319 million yuan is expected to enhance its signal chain technology and penetrate the consumer electronics market [5]. - The company's IPO in Hong Kong is part of a broader trend, with at least 24 A-share companies applying for listings on the Hong Kong Stock Exchange, indicating a growing interest in dual listings [6]. - The current market environment favors semiconductor assets, providing Jiewa with an opportunity to enhance its valuation and secure long-term funding [6].

Group 1 - The company reported a total operating revenue of 1,678.75 million yuan, representing a year-on-year increase of 29.46% [53] - The company experienced a net loss attributable to shareholders of 603.37 million yuan, with a net profit excluding non-recurring gains and losses of 643.75 million yuan [53] - The company will not distribute profits for the fiscal year 2024 due to negative retained earnings [3] Group 2 - The company operates primarily in the analog integrated circuit design sector, utilizing a virtual IDM model for chip design and manufacturing [5][19] - The company focuses on power management and signal chain products, providing innovative and efficient analog semiconductor solutions [5][6] - The company has developed a comprehensive product supply system in the power management analog chip sector, covering various applications including new energy, automotive electronics, and consumer electronics [5][42] Group 3 - The global semiconductor chip market is projected to grow from 2.49 trillion yuan in 2020 to 3.61 trillion yuan in 2024, with a compound annual growth rate (CAGR) of 9.7% [34] - The Chinese semiconductor chip market is expected to grow from 0.88 trillion yuan in 2020 to 1.45 trillion yuan in 2024, with a CAGR of 13.3% [35] - The analog chip market in China is forecasted to increase from 124.9 billion yuan in 2020 to 195.3 billion yuan in 2024, with a CAGR of 11.8% [36] Group 4 - The company has established a stable supply chain and customer base, collaborating with leading wafer manufacturers and entering the supply chains of major industry players [44] - The company is positioned to benefit from the growing demand for analog chips in various sectors, including AI, automotive electronics, and communication technologies [45][48][49] - The company aims to enhance its competitive edge through continuous technological innovation and market expansion, responding to the increasing demand for high-performance analog chips [51]