Core Viewpoint - Shenghe Jingwei Semiconductor Co., Ltd. has passed the IPO application review by the Shanghai Stock Exchange, marking it as the first approved Sci-Tech Innovation Board IPO of the year. The company is a leading provider of advanced packaging and testing services in the integrated circuit industry, with impressive revenue growth and profitability [1][10]. Financial Performance - Shenghe Jingwei's revenue growth rates for 2023 to 2025 are projected at 86.10%, 54.87%, and 38.59% respectively. The company is expected to turn a profit in 2023, with net profit reaching 923 million yuan by 2025 [1][10]. - The company plans to raise 4.8 billion yuan through the IPO, focusing on funding for three-dimensional multi-chip integration packaging projects and enhancing bumping capacity [1][10]. Customer Dependency - Over 70% of Shenghe Jingwei's revenue comes from a single major customer, with sales percentages increasing from 40.56% in 2022 to 74.40% in the first half of 2025 [2][11]. - The company acknowledges risks associated with its reliance on this major customer, including potential adverse changes in the customer's business conditions or geopolitical factors [3][12]. Capacity Utilization and Expansion - Despite plans for capacity expansion, Shenghe Jingwei's capacity utilization rates have not reached saturation, with Bumping capacity utilization at 79.09% and multi-chip integration packaging utilization fluctuating around 63.42% [4][13]. - The company has indicated risks related to the inability to absorb new capacity due to intensified market competition [13]. Research and Development - Shenghe Jingwei's R&D expense ratio has declined from 15.72% to 11.53% over the reporting period, although it remains above the industry average of approximately 8% [4][14]. - The number of R&D personnel has also decreased, raising concerns about the company's future competitiveness in a rapidly evolving industry dominated by major players like TSMC, Intel, and Samsung [6][14]. Corporate Governance - The company's ownership structure is fragmented, with no actual controlling shareholder, which may lead to inefficiencies and decision-making challenges [7][15]. - Shenghe Jingwei is registered in the Cayman Islands, raising concerns about investor protection due to differences in legal frameworks compared to domestic regulations [8][16].

Core Viewpoint - Shenghe Jingwei has received approval for its IPO on the Sci-Tech Innovation Board, aiming to raise 4.8 billion yuan to invest in advanced packaging projects and enhance its production capacity in the semiconductor industry [1]. Group 1: Company Overview - Shenghe Jingwei is a leading advanced packaging and testing enterprise in the integrated circuit industry, focusing on 12-inch wafer processing and providing a full range of advanced packaging services [1][2]. - The company was established in 2014 as a joint venture between SMIC and JCET, addressing the gap in 12-inch wafer processing capabilities in China [1][3]. Group 2: Market Position and Achievements - Shenghe Jingwei is recognized as one of the earliest companies in mainland China to achieve mass production of 12-inch Bumping technology and is the first to offer 14nm advanced process Bumping services [2][3]. - As of 2024, the company holds the largest market share in mainland China for 12-inch WLCSP, with approximately 31% of the revenue in this segment [2]. - The company has also established itself as the leading provider of 2.5D integration technology in mainland China, with an 85% market share in revenue for this segment in 2024 [3]. Group 3: Financial Performance - In 2024, the multi-chip integration packaging segment became the largest revenue contributor for Shenghe Jingwei, accounting for 44.39% of total revenue, and is projected to increase to 56.24% in the first half of 2025 [4].

Company News - Ningbo Fubang expects a net profit attributable to shareholders of 50 million to 70 million yuan in 2025, representing a year-on-year growth of 3099.59% to 4379.43%. The increase is driven by a focus on core business and rising silver prices, leading to improved revenue and profitability [5][6]. - Huatu Shanding anticipates a net profit attributable to shareholders of 280 million to 420 million yuan in 2025, reflecting a year-on-year increase of 428.38% to 692.57% [5]. - Zhenlei Technology forecasts a net profit attributable to shareholders of 123 million to 145 million yuan in 2025, indicating a year-on-year growth of 529.64% to 642.26% [5]. - Shijia Photon expects a net profit of approximately 342 million yuan in 2025, representing a year-on-year increase of around 425.95% [6]. - Nanya New Materials projects a net profit attributable to shareholders of 220 million to 260 million yuan in 2025, with a year-on-year growth of 337.20% to 416.69% [6]. - Yihua Co. anticipates a net profit of 310 million to 390 million yuan in 2025, reflecting a year-on-year increase of 149.66% to 214.09% [6]. - Jiayuan Group expects a net profit attributable to shareholders of 600 million to 680 million yuan in 2025, indicating a year-on-year growth of 133.36% to 164.47% [6]. - Guotai Haitong forecasts a net profit attributable to shareholders of 27.533 billion to 28.006 billion yuan in 2025, representing a year-on-year increase of 111% to 115% [6]. - Shenwan Hongyuan anticipates a net profit attributable to shareholders of 9.1 billion to 10.1 billion yuan in 2025, reflecting a year-on-year growth of 74.64% to 93.83% [6]. - Muxi Co. expects a revenue of 1.6 billion to 1.7 billion yuan in 2025, with a year-on-year increase of 115.32% to 128.78%, but anticipates a net loss of 650 million to 798 million yuan, narrowing losses by 43.36% to 53.86% compared to the previous year [6]. Market Developments - Jia Shitang announced that its shareholder, China Everbright Industrial Group, is planning a change in company control, leading to a suspension of trading starting January 28, with an expected duration of no more than two trading days [7]. - Vanke A announced that its largest shareholder, Shenzhen Metro Group, will provide a loan of up to 2.36 billion yuan to repay bond principal and interest, with a term of 36 months [7]. - Pianzaihuang's controlling shareholder plans to increase its stake in the company through a centralized bidding process, with a total investment of no less than 300 million yuan and no more than 500 million yuan [8]. - Zhongwei Semiconductor announced a price adjustment for MCU and Norflash products, with an increase of 15% to 50% due to rising costs and supply chain pressures [8][9]. - Yingxin Development plans to acquire 60% of Guangdong Changxing Semiconductor for 520 million yuan, which will enhance its revenue and profitability in the storage chip business [8].

1. Report Industry Investment Rating - No industry investment rating is provided in the report. 2. Core Viewpoints of the Report - The target price of Yongxi Convertible Bonds on the first - day of listing is expected to be between 128 - 133 yuan, and it is recommended to actively subscribe. The expected first - day conversion premium rate is in the range of 23% - 28%. The expected first - day new bond lottery winning rate is around 0.0074% - 0.0103% [3][20][21]. 3. Summary According to the Directory 3.1 Yongxi Convertible Bonds New Issue Analysis and Investment Recommendations 3.1.1 Convertible Bond Basic Terms Analysis - The issuance methods of Yongxi Convertible Bonds are priority placement and online issuance, with a bond and issuer rating of A+. The issuance scale is 1.165 billion yuan, the initial conversion price is 28.39 yuan, and the conversion parity on June 25, 2025, is 103.77 yuan. The calculated pure bond value is 83.7 yuan. The game terms are normal. Overall, the bond issuance scale is relatively high, the liquidity is acceptable, the rating is weak, and the bond floor protection is acceptable. It is difficult for institutions to include it in their portfolios, but there is no objection to primary participation [2][16]. 3.1.2 New Bond Initial Listing Price Analysis - The company's main business is integrated circuit packaging and testing. The main products and services include five major categories with over 2,100 mass - produced varieties. The funds raised from this issuance are mainly used for the "Multi - dimensional Heterogeneous Advanced Packaging Technology R & D and Industrialization Project", which can optimize the company's capital structure and enhance its competitiveness [3][19]. - The target price of Yongxi Convertible Bonds on the first - day of listing is 128 - 133 yuan, and it is recommended to actively subscribe. The expected first - day conversion premium rate is in the range of 23% - 28% [3][20]. 3.1.3 Convertible Bond New Issue Lottery Winning Rate Analysis - The expected first - day new bond lottery winning rate is around 0.0074% - 0.0103%. Assuming the old shareholders' placement ratio is 30% - 50%, the scale available for the market is 583 million - 816 million yuan. Referring to recent similar bond issues, the online effective subscription number is assumed to be 7.92 million households [21]. 3.2 Underlying Stock Fundamental Analysis 3.2.1 Company's Main Business and Industry Upstream and Downstream Situations - The company's main business is integrated circuit packaging and testing, with five major product categories and over 2,100 mass - produced varieties [22]. - The main upstream industries are packaging and testing raw materials and equipment industries, and the company has established good long - term cooperative relationships with many suppliers. The main downstream industry is the IC design industry, and the market scale and development speed of the downstream industry directly affect the company's sales revenue [22][23]. 3.2.2 Company's Operating Conditions - The company's recent operating income has shown an overall upward trend. From 2022 to Q1 2025, the operating income was 2.177 billion yuan, 2.391 billion yuan, 3.609 billion yuan, and 945 million yuan respectively, with year - on - year growth rates of 5.96%, 9.82%, 50.96%, and 30.12% respectively [26]. - The company's comprehensive gross profit margin has shown a fluctuating trend. From 2022 to Q1 2025, the comprehensive gross profit margin was 21.91%, 13.9%, 17.33%, and 14.19% respectively, and the net profit margins were 6.3%, - 5.65%, 1.09%, and 0.96% respectively [27]. - The company's recent period expenses have shown an upward trend, and the R & D expenses have gradually increased. The accounts receivable have shown a slight fluctuation, and the accounts receivable turnover rate has shown a slight downward trend but is at a medium level compared with the industry [31][33][36]. - The company's recent attributable net profit has shown a fluctuating trend. In 2023, the company suffered a loss, and in 2024, it turned losses into profits [40]. 3.2.3 Company's Equity Structure and Major Controlling Subsidiaries - The company's equity structure is relatively concentrated. As of June 10, 2025, the top two major shareholders hold 25.69% of the shares in total, and the top ten major shareholders hold 52.92% of the shares in total. The company's direct controlling shareholder is Yongshunxin Electronics, and the actual controller is Wang Shunbo, who holds 31.70% of the total shares. The company has 2 wholly - owned subsidiaries, 1 controlling subsidiary, and 2 affiliated companies [42][44]. 3.2.4 Company's Business Characteristics and Advantages - The company has advantages in technological innovation, talent reserve, customer cooperation, and quality assurance. It focuses on the advanced packaging field, has a large number of patents, a complete R & D system, and good cooperation with well - known design companies, and has established a quality control system [47][48][49]. 3.2.5 Allocation of Funds Raised in This Issuance - The company plans to issue convertible bonds to raise a total of no more than 1.165 billion yuan. 900 million yuan is planned to be invested in the "Multi - dimensional Heterogeneous Advanced Packaging Technology R & D and Industrialization Project", with a total investment of 1.464 billion yuan. After the project is completed, it will form an annual production capacity of 90,000 pieces of multi - dimensional heterogeneous advanced packaging products, and the project has good economic benefits [50].