Core Viewpoint - Zhongjuxin Technology Co., Ltd. experienced a 5.1% decline in stock price, closing at 9.12 CNY per share, with a total market capitalization of 13.473 billion CNY as of September 23 [1] Company Overview - Zhongjuxin was established on December 25, 2017, and went public on September 8, 2023. The company is based in Quzhou, Zhejiang Province, and specializes in the research, production, and sales of electronic wet chemicals, electronic specialty gases, and precursor materials [1] - The revenue composition of Zhongjuxin is as follows: electronic wet chemicals account for 76.63%, electronic specialty gases and precursors for 21.25%, and other sources for 2.12% [1] Shareholder Information - Among the top ten circulating shareholders of Zhongjuxin, Bosera Fund's Bosera SSE STAR 100 ETF Linked A (019857) increased its holdings by 867,000 shares in Q2, bringing its total to 4.1924 million shares, which represents 0.73% of the circulating shares [2] - As of the latest data, the fund has incurred an estimated floating loss of approximately 2.0543 million CNY [2] Fund Performance - The Bosera SSE STAR 100 ETF Linked A (019857) was established on December 1, 2023, with a current size of 383 million CNY. Year-to-date, it has achieved a return of 48.25%, ranking 598 out of 4220 in its category. Over the past year, the return is 104.32%, ranking 469 out of 3814, and since inception, the return is 33.48% [2]

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] Group 1: Company Development History - Established in 2004, Hengkun New Materials initially focused on the research, production, and sales of optoelectronic film devices and window lens products [2] - Since 2014, the company has been planning a business transformation towards key materials in the integrated circuit field [2] Group 2: Technological Innovation Achievements - The company has achieved significant milestones in technology innovation and R&D investment, focusing on the development and industrial application of key materials for integrated circuits [5] - Hengkun New Materials has successfully introduced imported photoresist materials and precursor materials, which have been validated by leading 12-inch integrated circuit wafer fabs in China since 2017 [4] - The company has achieved over 100 million yuan in sales revenue from self-produced products by 2022, including various photoresist materials and precursor materials [4] - Current products are essential for advanced NAND, DRAM memory chips, and logic chips at 90nm technology nodes and below, addressing critical areas in the integrated circuit wafer manufacturing process [5] - Hengkun New Materials has successfully replaced foreign products in the 12-inch integrated circuit key materials market, breaking the foreign monopoly and moving towards innovation leadership [5]

Core Viewpoint - The IPO registration of Xiamen Hengkang New Materials Technology Co., Ltd. has been approved, marking a significant step towards its public offering in the context of the ongoing U.S.-China trade tensions and the strategic push for domestic integration of key materials in the integrated circuit industry [1][6]. Company Overview - Hengkang New Materials specializes in the research, production, and sales of photolithography materials and precursor materials, being one of the few domestic companies capable of developing and mass-producing key materials for 12-inch integrated circuit wafer manufacturing [6][9]. - The company has a history of nearly 20 years, evolving from initially importing technology to developing its own through a process of "introduction, digestion, absorption, and innovation" [9][11]. Financial Information - The company aims to raise approximately 1.007 billion yuan through its IPO, with funds allocated to the second phase of the integrated circuit precursor project and advanced materials project [8]. - Hengkang New Materials reported revenues of 322 million yuan, 368 million yuan, and 548 million yuan for the years 2022, 2023, and 2024 respectively, with net profits of approximately 99.73 million yuan, 89.76 million yuan, and 96.91 million yuan for the same years [15][16]. Product Development and Market Position - The company has achieved significant sales in the domestic market, ranking first among local manufacturers in the sales scale of SOC (carbon film coating) and BARC (anti-reflective coating) in 2023 [13][14]. - Hengkang New Materials has developed a strong patent portfolio with 89 patents, including 36 invention patents, and has been involved in national-level research projects [14][15]. Investment and Support - The company has received substantial investment from various local funds, with the Xiamen Industrial Investment Fund investing over 100 million yuan [8][23]. - Hengkang New Materials has established stable sales relationships with several of the top ten wafer foundries in China, ensuring a solid customer base for its products [20][27]. Future Outlook - The company plans to continue enhancing the localization of its products and expand into international markets, aiming to become a leading domestic and internationally competitive player in the integrated circuit key materials sector [27].

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 point of the article is that Xiamen Hengkang New Materials Technology Co., Ltd. has successfully registered its IPO on the Sci-Tech Innovation Board [1] - The company focuses on the research and industrial application of key materials in the integrated circuit field, specifically in the development, production, and sales of photoresist materials and precursor materials [1] - The IPO process began with acceptance on December 26, 2024, followed by an inquiry phase starting on January 18, 2025, and approval on August 29, 2025, with registration submitted on the same day [1] Group 2 - Hengkang New Materials aims to raise approximately 1.007 billion yuan through this IPO, which will be allocated to the second phase of the integrated circuit precursor project and advanced materials for integrated circuits, after deducting issuance costs [1]

Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. has received approval for its IPO on the Sci-Tech Innovation Board, but faces significant challenges due to high customer concentration and a notable disparity between revenue growth and profit decline [1][2][4]. Group 1: Revenue and Profitability - Hengkang New Materials has shown strong revenue growth with a compound annual growth rate of 30.5%, but struggles with profitability, as evidenced by a 25.18% decline in net profit in the first half of 2025 despite a 23.74% increase in revenue [1][2][3]. - The company’s revenue heavily relies on its top five customers, which accounted for over 97% of total sales during the reporting period, indicating a high customer concentration risk [3][4]. - The revenue figures for 2022 to 2024 show a significant increase, with 2024 revenue up 70.29% compared to 2022, yet net profit decreased by nearly 3 million [2][3]. Group 2: Customer Dependency - The largest customer contributed 64% of total revenue in the lowest year of the reporting period, raising concerns about the sustainability of the business model if relationships with key clients deteriorate [4][5]. - The company’s reliance on a few key customers poses a risk to its operational performance, as any changes in these relationships could adversely affect financial results [4]. Group 3: Product Profitability - Hengkang New Materials has a dual product structure, with self-produced products and introduced products, but the latter remains the primary source of profit, contributing over 65% of gross profit despite a growing share of self-produced products in revenue [5][6]. - The gross profit margins for self-produced products have been declining, falling below industry averages since 2023, raising questions about their technological competitiveness [9]. Group 4: IPO Fund Utilization and Project Viability - The company plans to raise 1.007 billion yuan for expansion projects, including the second phase of integrated circuit precursors and advanced materials, but the rationale behind these projects is under scrutiny due to ongoing losses in precursor products [1][10][12]. - The utilization rates for KrF photoresist production have been alarmingly low, with rates below 20%, leading to skepticism about the decision to expand production capacity in this area [12].

Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. (referred to as "Hengkang New Materials") has seen its IPO registered on the Sci-Tech Innovation Board as of September 12. The company heavily relies on a concentrated customer base, with 97% of its revenue coming from its top five clients, raising concerns about its growth sustainability and profitability despite strong revenue growth [1][2][3]. Group 1: Revenue and Profitability - Hengkang New Materials reported significant revenue growth during the reporting period, with revenues of 321.77 million yuan, 367.71 million yuan, and 547.94 million yuan from 2022 to 2024, respectively. However, net profits fluctuated, with figures of 99.73 million yuan, 89.76 million yuan, and 96.91 million yuan, indicating a "revenue growth without profit" trend [2][3]. - In the first half of 2025, the company achieved a revenue of 294.34 million yuan, a year-on-year increase of 23.74%, while net profit decreased by 5.71% to 41.58 million yuan, with a significant drop of 25.18% in net profit after deducting non-recurring gains and losses [2][3][4]. Group 2: Customer Concentration - The company's revenue is highly dependent on a few key clients, with sales to the top five clients accounting for 99.22%, 97.92%, and 97.2% of total revenue during the reporting period, indicating a significant reliance on a limited customer base [3][4]. - Specifically, sales to a single client (Client A) contributed 72.35%, 66.74%, and 64.07% of total revenue in the respective years, highlighting the risk associated with such customer concentration [4]. Group 3: Product Profitability - Hengkang New Materials has two main product categories: self-produced products and introduced products. The revenue from self-produced products has been increasing, but the profit contribution remains low, with introduced products generating the majority of profits [6][7]. - The gross profit from introduced products was 189.41 million yuan, 167.92 million yuan, and 192.31 million yuan, while self-produced products generated gross profits of 41.43 million yuan, 57.72 million yuan, and 99.71 million yuan, indicating that introduced products account for over 65% of the company's profit [7][8]. Group 4: R&D Investment and Product Viability - The company has a high R&D expense ratio, with rates of 13.28%, 14.59%, and 16.17% during the reporting period, significantly above the industry average [11]. - Despite high R&D spending, the gross margin for self-produced products has been declining, falling below the industry average since 2023, raising questions about the technological content of its self-produced products [11]. Group 5: IPO Fund Utilization and Expansion Plans - Hengkang New Materials aims to raise 1.007 billion yuan through its IPO for expansion projects, including the second phase of integrated circuit precursor projects and advanced materials projects. However, the rationale behind these projects is questioned due to the ongoing losses in precursor materials [13][15]. - The company plans to expand its production capacity for KrF photoresist, which has consistently low utilization rates below 20%, raising concerns about the feasibility of such expansion [15].

Investment Rating - The investment rating for the company is "Buy" with a previous rating of "Buy" as well [2] Core Views - The report highlights the company's robust revenue growth in the first half of 2025, driven by the expansion of its electronic materials business, and maintains a "Buy" rating [2][6] Financial Performance - In the first half of 2025, the company achieved revenue of RMB 4.293 billion, a year-on-year increase of 31.82%, and a net profit attributable to shareholders of RMB 522.79 million, a slight increase of 0.63% year-on-year [9][10] - The second quarter of 2025 saw revenue of RMB 2.175 billion, up 32.76% year-on-year, while the net profit attributable to shareholders decreased by 4.06% to RMB 262.52 million [11] Revenue Breakdown - The electronic materials segment generated revenue of RMB 2.573 billion in the first half of 2025, reflecting a year-on-year growth of 15.37% [9] - The LNG insulation board segment reported revenue of RMB 1.165 billion, a significant increase of 62.34% year-on-year [9] Profitability Metrics - The company's gross margin for the first half of 2025 was 31.82%, down 2.34 percentage points year-on-year, while the net margin was 13.29%, down 3.00 percentage points year-on-year [9] - The company expects net profits for 2025-2027 to be RMB 11.83 billion, RMB 15.36 billion, and RMB 19.40 billion respectively, with corresponding earnings per share of RMB 2.49, RMB 3.23, and RMB 4.08 [6][14] Market Position - The company is positioned as a leading supplier in the domestic display photoresist industry, with ongoing development of key raw materials for color photoresists [9] - The report notes the establishment of dual R&D departments in China and South Korea to enhance the development of advanced semiconductor materials [9] Future Outlook - The company is optimistic about the continued expansion of its electronic materials business and maintains its "Buy" rating based on strong growth prospects [2][6]

Industry Overview - The Chinese integrated circuit industry is experiencing unprecedented development opportunities driven by national policies and market demand, with the "14th Five-Year Plan" elevating integrated circuit technology innovation and new material research to a national strategic level [1] - The collaboration between upstream and downstream sectors of the industry chain is increasingly enhanced, with the localization of key materials becoming a core aspect of supply chain security [1] Company Profile - Xiamen Hengkang New Materials Technology Co., Ltd. (Hengkang New Materials) is a significant participant and beneficiary in this process, focusing on the research, production, and sales of photolithography materials and precursor materials required for 12-inch wafer manufacturing [3] - The company has become one of the few domestic innovators to achieve mass production of related materials and enter the supply chain of mainstream wafer manufacturers [3] Financial Performance - Hengkang New Materials has shown significant revenue growth in recent years, with projected revenues of 321.77 million yuan, 367.71 million yuan, and 547.94 million yuan for 2022, 2023, and 2024 respectively, reflecting a compound annual growth rate of 30.50% [3] - This performance is attributed to the continuous expansion of industry demand and the company's strong technological foundation and market positioning [3] Market Expansion - The company has established stable partnerships with several leading domestic 12-inch wafer manufacturers, enhancing order continuity and customer loyalty through active participation in client process development and production line validation [4] - Future projects, such as the "Phase II of Integrated Circuit Precursor" and "Advanced Materials for Integrated Circuits," are expected to further enrich the product structure, increase production capacity, and enhance the company's competitiveness in the high-end semiconductor materials market [4] Growth Potential - Hengkang New Materials is positioned to maintain strong growth and profitability in the favorable industry policy environment, continuously injecting new momentum into the localization process of key materials in China's integrated circuit sector [4]

Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. has successfully passed the IPO review for the Sci-Tech Innovation Board, aiming to raise 1.007 billion yuan for two major projects related to integrated circuit precursor materials and advanced materials [1][3]. Industry Overview - The domestic market for key materials in integrated circuits, such as photoresists and precursors, is heavily dominated by foreign manufacturers from Europe, the United States, Japan, and South Korea. Chinese companies face significant gaps in raw material supply, equipment development, technology accumulation, talent cultivation, and financial reserves [4]. - The increasing restrictions imposed by foreign countries on China's integrated circuit industry have created substantial challenges for the domestic supply chain, making the push for domestic production of key materials urgent, especially in the high-end integrated circuit sector [4]. Company Strategy - The fundraising projects by Hengkang New Materials align with the industry's trend towards domestic production of key materials. The focus will be on the research and industrialization of precursors and other critical materials, which is expected to enhance the domestic supply chain security for high-end integrated circuits [4]. - The current reliance on imports for key materials presents a competitive disadvantage for domestic manufacturers. However, the growing wafer fabrication capacity and rapid downstream demand create a unique opportunity for domestic companies to capture market share during this "golden development window" [5]. - Hengkang New Materials aims to leverage its existing customer base in the integrated circuit sector to quickly develop products that meet industry standards and ensure stable supply and quality, thereby seizing opportunities in the domestic market [5]. Product Development - Hengkang New Materials has made progress in the integrated circuit materials sector, with products including photoresists and precursors used in 12-inch wafer manufacturing. The company serves several leading domestic wafer manufacturers [6]. - The product range includes silicon-based and metal-based precursors, as well as advanced photoresist materials that meet the needs of cutting-edge manufacturing processes. The introduction of new products will enhance the company's ability to meet domestic demand for localized materials [6]. - The implementation of the fundraising projects will further diversify the product matrix of Hengkang New Materials, increasing its competitiveness and brand influence in the market, which is essential for long-term growth [6].