Report Industry Investment Rating No information provided regarding the report industry investment rating. Core Viewpoints of the Report - The target price of Qizhong Convertible Bond on the first trading day is estimated to be between 128 - 133 yuan, and investors are advised to actively subscribe. Considering the current market environment and parity level, the conversion premium rate on the first listing day is expected to be in the range of 28% - 33% [3][18]. - The estimated first - day new - bond lottery winning rate is around 0.0024% - 0.004% [19]. Summary by Relevant Catalogs 1. Qizhong Convertible Bond New - Bond Analysis and Investment Suggestions 1.1 Convertible Bond Basic Terms Analysis - The issuance methods of Qizhong Convertible Bond are priority placement and online issuance. The bond and issuer ratings are AA+. The issuance scale is 850 million yuan, the initial conversion price is 13.75 yuan, the bond parity is 100.29 yuan, and the pure bond value is 98.54 yuan. The game terms are normal. Overall, the bond issuance scale is average, the liquidity is average, the rating is good, and the bond floor protection is good. It is not difficult for institutions to include it in their portfolios, and there is no objection to primary participation [2][14]. 1.2 New - Bond Initial Listing Price Analysis - The company mainly engages in advanced packaging and testing of integrated circuits, focusing on the display driver chip packaging and testing field and non - display chip packaging and testing fields such as power management chips and RF front - end chips. The funds raised from this issuance will be used for relevant projects, which can optimize the company's capital structure and enhance its market competitiveness [3][17]. 1.3 Convertible Bond New - Bond Lottery Winning Rate Analysis - Assuming the old shareholders' placement ratio is 59% - 76%, the scale of Qizhong Convertible Bond available to the market is 203 million - 350 million yuan. Assuming the online effective subscription number is 8.65 million households, the lottery winning rate is around 0.0024% - 0.004% [19]. 2. Underlying Stock Fundamental Analysis 2.1 Company's Main Business and Industry Upstream and Downstream - The company focuses on advanced packaging and testing of integrated circuits, mainly in the display driver chip and non - display chip packaging and testing fields. The integrated circuit industry chain includes chip design, wafer manufacturing, and packaging and testing. The upstream of the packaging and testing industry is integrated circuit manufacturing. Different types of chips have different downstream application markets [20][21]. 2.2 Company's Operating Conditions - The company's recent operating income has shown an increasing trend. From 2022 to the first half of 2025, the operating income was 1.317 billion yuan, 1.629 billion yuan, 1.95 billion yuan, and 996 million yuan respectively. The comprehensive gross profit margin has declined, and the net profit margin has also decreased. The company's period expenses have fluctuated slightly, and R & D expenses have been increasing. Accounts receivable have risen, but the turnover rate remains relatively high. The net profit attributable to the parent company has changed significantly [24][28][30]. 2.3 Company's Equity Structure and Major Subsidiaries - As of June 30, 2025, the company's equity structure is relatively concentrated. The top two shareholders hold 58.83% of the shares, and the top ten shareholders hold 76.06% of the shares. The company has one wholly - owned first - level subsidiary and one wholly - owned second - level subsidiary [43]. 2.4 Company's Business Characteristics and Advantages - The company is an advanced packaging and testing service provider for integrated circuits, with advantages in technological innovation, talent cultivation and introduction policies, and R & D incentive policies [46]. 2.5 Allocation of Funds Raised in This Issuance - The company plans to issue convertible bonds to raise up to 850 million yuan. 419 million yuan will be used for the "High - Pin - Count Micro - Sized Bump Packaging and Testing Project", and 431 million yuan will be used for the "Advanced Power and Flip - Chip Packaging and Testing Technology Transformation Project of Qizhong Technology (Suzhou) Co., Ltd." [12][49].

Group 1 - The core point of the news is that Huicheng Co., Ltd. has experienced a continuous decline in stock price, dropping 1.38% on November 4, with a total market value of 13.53 billion yuan and a cumulative decline of 8.42% over four days [1] - Huicheng Co., Ltd. is located in Hefei, Anhui Province, and was established on December 18, 2015. It was listed on August 18, 2022. The company specializes in the manufacturing of gold bumping, wafer testing, and various packaging services for display driver chips [1] - The main business revenue composition of Huicheng Co., Ltd. is 90.25% from display driver chip testing and packaging, while other services account for 9.75% [1] Group 2 - From the perspective of fund holdings, one fund under Shenwan Hongyuan has Huicheng Co., Ltd. as its second-largest holding, with 21,900 shares, accounting for 1.97% of the fund's net value [2] - The fund, Shenwan Hongyuan Intelligent Life Quantitative Selection Mixed Fund A, has experienced a floating loss of approximately 48,180 yuan today and a total floating loss of 31,800 yuan over the past four days [2] - The fund was established on March 17, 2023, with a current scale of 19.53 million yuan, and has achieved a return of 30.57% this year, ranking 2,983 out of 8,150 in its category [2]

Group 1 - The core point of the news is that Huicheng Co., Ltd. has experienced a continuous decline in stock price, dropping 1.38% on November 4, with a total market value of 13.53 billion yuan and a cumulative decline of 8.42% over four days [1] - Huicheng Co., Ltd. is located in Hefei, Anhui Province, and was established on December 18, 2015. It went public on August 18, 2022. The company specializes in the manufacturing of gold bumping, wafer testing, and various packaging services for display driver chips, with 90.25% of its revenue coming from this core business [1] - The company's stock trading volume on November 4 was 462 million yuan, with a turnover rate of 3.35% [1] Group 2 - According to data, one fund under Huatai PineBridge holds Huicheng Co., Ltd. as a significant investment, with 191,200 shares representing 0.39% of the fund's net value, ranking as the ninth largest holding [2] - The fund, Huatai PineBridge National Index 2000 Enhanced A, has a total scale of 672 million yuan and has achieved a return of 49.92% this year, ranking 596 out of 4,216 in its category [2] - The fund managers, Wu Zhenxiang and Wang Xingxing, have significant experience, with Wu having a tenure of over 15 years and a best fund return of 199.41%, while Wang has been managing for over 2 years with a best return of 67.09% [2]

Group 1 - The core point of the news is that Huicheng Co., Ltd. has experienced a significant decline in stock price, dropping 5.06% on October 15, with a cumulative drop of 12.29% over three consecutive days [1] - As of the report, Huicheng's stock price is at 16.33 yuan per share, with a trading volume of 740 million yuan and a turnover rate of 5.17%, resulting in a total market capitalization of 14.011 billion yuan [1] - The company, established on December 18, 2015, specializes in the manufacturing of display driver chips, with 90.25% of its revenue coming from packaging and testing services [1] Group 2 - From the perspective of major fund holdings, Changcheng Fund has a significant position in Huicheng Co., Ltd., with its Changcheng Jiuheng Mixed A Fund holding 226,200 shares, representing 3.52% of the fund's net value [2] - The fund has incurred a floating loss of approximately 196,800 yuan today, with a total floating loss of 545,200 yuan during the three-day decline [2] - The Changcheng Jiuheng Mixed A Fund has achieved a return of 50.4% year-to-date, ranking 615 out of 8,161 in its category [2]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index in the next six months [4][18]. Core Views - The company has experienced significant revenue growth in the first half of 2025, driven by the recovery in consumer electronics demand, particularly for large-size panels and AMOLED products, alongside the release of new production capacity from fundraising projects [2][3]. - The company's gross margin improved to 23.53% in 25H1, up 3.63 percentage points year-on-year, attributed to increased order volumes and an improved product mix [2]. - The report highlights the ongoing shift of the display driver chip packaging and testing business from Taiwan and South Korea to mainland China, benefiting domestic companies like the report's subject [3][9]. Financial Summary - The company reported a revenue of 866 million yuan in 25H1, a year-on-year increase of 28.58%, and a net profit of 96 million yuan, up 60.94% year-on-year [1][2]. - The projected revenues for the company are expected to grow from 1,238 million yuan in 2023 to 2,546 million yuan by 2027, with a compound annual growth rate (CAGR) of approximately 18% [1]. - The net profit is projected to increase from 196 million yuan in 2023 to 361 million yuan by 2027, with significant growth expected in 2025 and 2026 [1][9]. Industry Insights - The report notes that the recovery in consumer electronics is expected to continue, with a notable increase in shipments of mid-to-large size products such as PCs, tablets, and TVs [3]. - The domestic display driver chip industry is anticipated to benefit from increased production capacity and market share among local manufacturers, particularly in the AMOLED segment [3][9]. - The company is positioned to expand its high-end packaging and testing capacity, which is crucial for meeting the growing demand in the display driver chip market [3][9].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's profitability significantly improved in Q2 2025, with a notable recovery in profit margins and operational efficiency [1][8] - The non-display business continues to be a key focus for the company, with ongoing efforts to enhance its capabilities in power device packaging and smart manufacturing [5][8] - The display driver chip business remains strong, holding the leading position in the domestic market and third globally, benefiting from the ongoing demand for larger display technologies [8] Financial Performance - In H1 2025, the company achieved revenue of 1.0 billion yuan, a year-on-year increase of 6.6%, while net profit decreased by 38.8% [8] - Q2 2025 revenue reached 520 million yuan, up 6.3% year-on-year and 9.9% quarter-on-quarter, with a significant improvement in gross margin to 31.3% [8] - The company expects revenues for 2025-2027 to be 2.27 billion, 2.62 billion, and 3.04 billion yuan respectively, with net profits projected at 330 million, 400 million, and 510 million yuan [6][9] Business Segments - The display driver chip segment accounted for 92.1% of total revenue in H1 2025, with a strong market position supported by advanced packaging capabilities [8] - The non-display business, while facing challenges, is expected to improve in H2 2025, with specific growth anticipated in Cu Bump and DPS utilization rates [5][8]

Group 1 - The core viewpoint of the news is that Huicheng Co., Ltd. experienced a decline in stock price, dropping by 5.07% to 12.91 CNY per share, with a trading volume of 249 million CNY and a turnover rate of 2.25%, resulting in a total market capitalization of 10.847 billion CNY [1] - Huicheng Co., Ltd. is located in Hefei, Anhui Province, and was established on December 18, 2015. The company went public on August 18, 2022. Its main business focuses on the manufacturing of gold bumping, as well as integrated services in wafer testing and various packaging processes for display driver chips [1] - The revenue composition of Huicheng Co., Ltd. indicates that 90.25% comes from display driver chip testing and packaging, while other services account for 9.75% [1] Group 2 - From the perspective of major fund holdings, Changcheng Fund has one fund heavily invested in Huicheng Co., Ltd. The Changcheng Jiuheng Mixed A Fund (200001) held 226,200 shares in the second quarter, representing 3.52% of the fund's net value, making it the eighth largest holding. The estimated floating loss today is approximately 156,100 CNY [2] - The Changcheng Jiuheng Mixed A Fund (200001) was established on October 31, 2003, with a latest scale of 66.0927 million CNY. Year-to-date returns are 57.77%, ranking 537 out of 8,184 peers; the one-year return is 110.1%, ranking 258 out of 7,971; and since inception, the return is 599.25% [2]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [5][18]. Core Insights - The company has shown steady revenue growth in the first half of 2025, with a year-on-year increase of 6.63%, reaching a revenue of 996 million yuan. However, the net profit attributable to the parent company decreased by 38.78% year-on-year to 99 million yuan [1][2]. - The company's gross margin for the first half of 2025 was 27.65%, down 5.22 percentage points year-on-year, while the net margin was 9.96%, down 7.39 percentage points year-on-year. In Q2 2025, the gross margin improved to 31.27%, up 7.60 percentage points quarter-on-quarter [2]. - The company is benefiting from the ongoing shift in the panel industry, with a strong position in the display driver chip market, particularly in the advanced 28nm process technology [3][10]. Financial Summary - Revenue projections for the company are as follows: 1,629 million yuan in 2023, 1,959 million yuan in 2024, 2,250 million yuan in 2025, 2,632 million yuan in 2026, and 3,054 million yuan in 2027, reflecting growth rates of 23.7%, 20.3%, 14.8%, 17.0%, and 16.0% respectively [1][11]. - The net profit attributable to the parent company is expected to be 372 million yuan in 2023, decreasing to 313 million yuan in 2024, and then recovering to 420 million yuan by 2027 [1][11]. - The company's earnings per share (EPS) are projected to be 0.31 yuan in 2023, decreasing to 0.23 yuan in 2025, and then increasing to 0.35 yuan by 2027 [1][11]. Industry Outlook - The report anticipates continued demand growth in the display industry, particularly for AMOLED technology, which accounted for 18% of the company's revenue in the first half of 2025. The penetration rate of AMOLED is expected to rise further [3][10]. - The company is actively expanding its non-display testing services to create a second growth curve, enhancing its competitiveness in the semiconductor packaging market [4][9].

Core Viewpoint - Hefei Chipmore Technology Co., Ltd. is issuing convertible bonds to unspecified investors, with a focus on meeting the suitability requirements for investors in the Sci-Tech Innovation Board [1][2]. Group 1: Convertible Bond Issuance - The company is issuing convertible bonds with redemption clauses, including maturity redemption and conditional redemption, with the redemption price determined by the board based on market conditions [2][3]. - The company has set a credit rating of "AA+" for the bonds, with a stable outlook, as assessed by Dongfang Jincheng [3][4]. Group 2: Risks and Considerations - Investors who do not meet the suitability requirements may face risks, including the inability to convert bonds into shares and potential losses if redemption prices are lower than the acquisition cost [2][3]. - The company has not provided guarantees for the bonds, which may lead to repayment risks if significant negative events affect its operational management and debt repayment capabilities [3][4]. Group 3: Business Development and Market Position - The company has been expanding its non-display advanced packaging technology since 2015, but its overall scale remains relatively small compared to leading competitors in the industry [6][7]. - The company faces risks from intensified market competition, particularly in the advanced packaging sector, where larger firms are actively investing [6][7]. Group 4: Fund Utilization and Project Risks - The funds raised will be used for projects including high-pin-count micro-sized bump packaging and advanced power and flip-chip packaging technology upgrades, which are expected to enhance the company's core competitiveness [7][8]. - There are risks associated with project implementation, including potential delays, market changes, and the possibility of not achieving expected profitability from the new projects [8][9]. Group 5: Measures to Mitigate Immediate Return Dilution - The company plans to implement various measures to protect investors' interests and mitigate the dilution of immediate returns from the bond issuance [10][11]. - The company has committed to strict governance and management practices to ensure effective use of raised funds and to enhance its profitability and core competitiveness [10][11].

Core Viewpoint - Company Qizhong Technology plans to raise up to 850 million yuan through convertible bonds to invest in two projects aimed at enhancing its advanced packaging and testing capabilities for integrated circuits [1][5]. Investment Projects - The total investment for the high-pin-count micro-sized bump packaging and testing project is approximately 41.95 million yuan, with the company planning to use 41.9 million yuan from the raised funds [3]. - The advanced power and flip-chip packaging technology renovation project at Qizhong Technology (Suzhou) has a total investment of about 43.17 million yuan, with 43.1 million yuan expected to be funded from the new issuance [3]. - The combined total investment for both projects is around 85.11 million yuan, with the company intending to utilize 85 million yuan from the fundraising [3]. Business Focus and Market Position - Over half of the raised funds will be allocated to enhance the packaging and testing capacity for non-display chips, which currently contribute less than 10% to the company's revenue in 2024 [5]. - Qizhong Technology is one of the few domestic firms capable of large-scale production of various bump manufacturing technologies and has maintained a leading position in advanced packaging technology [6]. - The company reported a projected revenue of nearly 2 billion yuan in 2024, with its display driver chip packaging business expected to sell 1.845 billion units, generating 1.758 billion yuan in revenue, ranking third globally in this sector [6]. Financial Performance and Stock Status - Since its IPO in April 2023, Qizhong Technology's stock has underperformed, trading below its initial offering price of 12.1 yuan per share, with a notable drop to around 8 yuan [9]. - The company has experienced a decline in net profit, reporting 313 million yuan in 2024, a decrease of 15.71% year-on-year, attributed to rising costs such as equipment depreciation and employee compensation [10]. - The company plans to repurchase shares at a price not exceeding 16.61 yuan per share, with a total repurchase amount between 75 million and 150 million yuan [9].