Core Viewpoint - Hengkun New Materials has successfully listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board, with a significant stock price increase of 280.32% post-IPO, indicating strong market interest and potential growth in the semiconductor materials sector [1]. Company Overview - Established in December 2004, Hengkun New Materials focuses on the research, production, and sales of key materials for 12-inch integrated circuits, including photoresist and precursor materials, addressing domestic gaps and providing solutions for advanced semiconductor manufacturing [4][6]. - The company has achieved mass production of its products, including SOC, BARC, KrF photoresist, and i-Line photoresist, with ArF immersion photoresist undergoing validation for small-scale sales [4]. Market Position and Financial Performance - According to Frost & Sullivan, Hengkun New Materials ranks among the top domestic manufacturers in the 12-inch integrated circuit sector, with its SOC and BARC sales leading the domestic market in 2023 [6]. - The company's revenue figures for 2022, 2023, 2024, and the first half of 2025 are projected at 322 million yuan, 368 million yuan, 548 million yuan, and 294 million yuan, respectively, with self-produced product sales increasing significantly [6]. - The revenue share of self-produced products is expected to grow from 38.94% in 2022 to 86.68% by mid-2025, reflecting a strong upward trend in market penetration [6]. Product Growth and Market Trends - SOC product revenue has more than doubled over three years, with projected sales of 232 million yuan in 2024 and a domestic market share exceeding 10%, indicating successful competition against international giants [6]. - BARC products have maintained over 140% year-on-year growth since their market introduction in 2021, showcasing robust market penetration capabilities [6]. - The growth of i-Line and KrF photoresists, which began sales in 2022, is notable, with projected sales reaching 7.15 million yuan and 13.52 million yuan in 2024, respectively, highlighting the acceleration of domestic substitution [7]. Future Prospects and Industry Integration - Hengkun New Materials plans to raise 1.007 billion yuan through its IPO to invest in projects aimed at enhancing production capacity for high-purity precursors and advanced materials, marking a strategic move towards deeper domestic integration [7]. - The domestic integrated circuit key materials market is projected to reach 258.96 billion yuan by 2028, with manufacturing materials accounting for over 70%, providing a substantial growth opportunity for Hengkun New Materials [7]. - The company's development is closely tied to the broader Chinese semiconductor industry's efforts to overcome challenges, with several major domestic wafer manufacturers already among its clients, ensuring stable orders and fostering a collaborative ecosystem [8].

Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. is focused on the research and industrial application of key materials for integrated circuits, aiming to break the foreign monopoly in the 12-inch integrated circuit wafer manufacturing sector and enhance domestic supply chain security [6][18]. Company Overview - The company specializes in the research, production, and sales of photolithography materials and precursor materials, being one of the few domestic firms capable of developing and mass-producing key materials for 12-inch integrated circuit wafers [6][7]. - Its products are essential for the manufacturing processes of advanced NAND, DRAM storage chips, and logic chips at 90nm technology nodes and below [7]. Product Development - The company has successfully mass-produced products including SOC, BARC, i-Line photoresists, KrF photoresists, and TEOS precursor materials, with ongoing development of new products like ArF photoresists and SiARC [7][13]. - As of the reporting period, the company has over a hundred products in various stages of research, validation, and mass supply [7]. Financial Performance - The company's main business revenue has shown steady growth, with self-produced product sales revenue increasing from 123.58 million yuan in 2022 to 344.19 million yuan in 2024, reflecting a compound annual growth rate of 66.89% [13][15]. - The gross profit from the main business has also increased, with self-produced products contributing significantly to the overall gross profit [14][15]. R&D Investment - R&D expenses have been consistently increasing, amounting to 42.74 million yuan in 2022 and 88.61 million yuan in 2024, representing 16.17% of the revenue [16]. - The company emphasizes continuous innovation and product development to enhance its market position [21]. Market Position and Strategy - The company aims to fill the gap in high-end materials currently dominated by foreign manufacturers, with a focus on expanding its product line and improving product quality [19][20]. - It plans to leverage its capital market entry to enhance technological development and industrial layout, aiming to become a leading domestic and internationally competitive enterprise in the integrated circuit key materials sector [24][20]. Listing and Fundraising - The company is set to raise funds through its IPO to invest in projects related to advanced materials and precursor materials for integrated circuits, which will enhance its product offerings and competitive edge [29][30]. - The expected market capitalization post-IPO is projected to be no less than 1 billion yuan, meeting the listing standards [26].

Core Viewpoint - Hengkun New Materials has successfully registered for an IPO on the Sci-Tech Innovation Board, marking a significant milestone in its transformation from traditional optoelectronic film business to key materials for integrated circuits [1][4]. Transformation Development Process - Established in 2004, Hengkun New Materials initially focused on the R&D, production, and sales of optoelectronic film devices and window lens products [1]. - Since 2014, the company has been planning its business transformation towards key materials in the integrated circuit field [1][3]. Technical Innovation Achievements - Hengkun New Materials has achieved significant milestones in technology innovation and R&D investment, focusing on the development and industrial application of key materials for integrated circuits [3]. - The company has successfully introduced imported photoresist materials and precursor materials, which have been validated by leading 12-inch integrated circuit wafer manufacturers in China since 2017 [3]. - Since 2020, Hengkun has begun selling self-produced photoresist and precursor materials, with sales revenue surpassing 100 million yuan in 2022 [3]. - The company’s products are essential for the production processes of advanced NAND, DRAM memory chips, and logic chips at 90nm technology nodes and below [3]. Market Position and Future Prospects - Hengkun New Materials has achieved domestic substitution of similar foreign products, breaking the foreign monopoly on key materials for 12-inch integrated circuits [4]. - The successful IPO is expected to provide new momentum for the company's development and enhance the self-controllable capabilities of China's integrated circuit industry chain [5].

Group 1 - The core viewpoint is that Xiamen Hengkang New Materials Technology Co., Ltd. has received approval for its IPO on the Sci-Tech Innovation Board, indicating that its application has passed regulatory scrutiny and is set to issue shares on the stock exchange [1] Group 2 - Hengkang New Materials was established in 2004 and specializes in the R&D, production, and sales of photoresist materials and precursor materials, being one of the few companies in China capable of developing and mass-producing key materials for 12-inch integrated circuit wafer manufacturing [2] - The company's products are essential for the production processes of advanced NAND, DRAM storage chips, and logic chips below the 90nm technology node, thus playing a critical role in integrated circuit wafer manufacturing [2] - Hengkang New Materials has successfully replaced similar foreign products in the domestic market, breaking the foreign monopoly on key materials for 12-inch integrated circuits [2] Group 3 - According to the prospectus, Hengkang New Materials' revenue is projected to be 322 million yuan, 368 million yuan, and 548 million yuan for the years 2022, 2023, and 2024 respectively, with net profit attributable to the parent company expected to be 101 million yuan, 90 million yuan, and 97 million yuan for the same years [3] - For the first nine months of 2025, the company anticipates revenue between 440 million yuan and 500 million yuan, representing a year-on-year growth of 12.48% to 27.82% [3] Group 4 - Hengkang New Materials plans to publicly issue no more than 67.3979 million shares of ordinary shares [4] Group 5 - The company aims to raise 1.007 billion yuan, with approximately 400 million yuan allocated for the second phase of the integrated circuit precursor project and about 607 million yuan for advanced materials for integrated circuits [5] Group 6 - Through this IPO, Hengkang New Materials intends to enhance its technological development and industrial layout, expand its product line, improve its core competitiveness and brand influence, and continuously enhance profitability to create value for shareholders and the industry [6]

Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. is set to undergo a review on July 25, showcasing its "hard technology strength" in the semiconductor materials sector [1] Group 1: Business Focus - The company focuses on key materials for integrated circuits, essential for technology upgrades and industry development [2] - Hengkang New Materials is dedicated to the R&D and industrial application of critical materials for the integrated circuit field, serving 12-inch wafer manufacturing [2] - Main products include SOC, BARC, KrF, i-Line, and ArF photoresists, as well as TEOS (purity 9N), primarily used in advanced NAND, DRAM storage chips, and logic chips below the 90nm technology node [2] Group 2: Market Position - In 2024, the company's revenue is projected to approach 540 million yuan, with a year-on-year growth exceeding 49% [3] - SOC revenue is expected to exceed 230 million yuan, and BARC revenue over 45 million yuan, together accounting for more than 50% of total revenue [3] - The domestic market size for SOC is approximately 1.7 billion yuan, and for BARC, about 3.7 billion yuan, indicating a strong market position among domestic manufacturers [3] Group 3: R&D Capabilities - The company has invested over 180 million yuan in R&D over the past three years, with a compound annual growth rate of 43.98% [4] - Hengkang New Materials has developed over 100 products in research, verification, and supply stages, demonstrating its commitment to meeting the needs of wafer manufacturers [4] - The company has been recognized as a "single champion enterprise" in manufacturing and a "national specialized and innovative 'little giant'" enterprise, highlighting its core competitiveness in advanced manufacturing [4] Group 4: Industry Context - The current capital market is increasingly focusing on technology innovation, with Hengkang New Materials' review reflecting the Sci-Tech Innovation Board's support for technological advancements [5] - The Sci-Tech Innovation Board serves as a new support point for "hard technology" enterprises, enabling breakthroughs in key core technologies within new industries and business models [5]