Core Viewpoint - Shanghai Huayi San Aifu New Materials Co., Ltd. (San Aifu) has established an electronic materials division targeting the strategic emerging field of fluorinated electronic materials, coinciding with 3M's exit from the fluorochemical market, which presents a significant opportunity for domestic semiconductor material development [1][4]. Group 1: Company Overview - San Aifu, a core platform under Huayi Group, has a history dating back to 1958, primarily focusing on fluorinated fine chemicals and high-performance fluoropolymer materials, holding a significant market share in China's fluorochemical sector [1][2]. - The company reported a revenue of 5.29 billion yuan and a net profit of 344 million yuan in 2023, with projected revenues of 4.619 billion yuan and a net profit of 253 million yuan for 2024, attributed to market fluctuations in fluoropolymer products [2]. Group 2: Strategic Developments - The establishment of the electronic materials division is a strategic upgrade for San Aifu, leveraging over 60 years of fluorochemical technology to enter the high-end electronic materials market [2][7]. - San Aifu has made significant progress in technology commercialization, with its self-developed polyimide materials achieving a production capacity in the thousand-ton range and applications in domestic display panel enterprises [4][6]. Group 3: Market Position and Opportunities - The demand for fluorinated materials in semiconductor manufacturing is increasing, particularly in cooling applications, with the liquid cooling market in China projected to reach 128.32 billion yuan by 2025, where immersion cooling will account for over 40% [1][4]. - The exit of 3M from the semiconductor cooling agent market, where it held a 90% share, provides a valuable market opportunity for domestic companies like San Aifu to fill the gap [4][7]. Group 4: Synergies and Future Outlook - The formation of the electronic materials division enhances Huayi Group's competitiveness in high-end new materials, with a dual-driven strategy combining basic chemicals and advanced materials [5][6]. - San Aifu's fluorochemical products complement Huayi Group's existing businesses, potentially reducing costs and increasing product value, which is expected to contribute stable and significant returns to the listed company [6][7].