Core Viewpoint - The recent surge in institutional research on stocks, particularly the interest in Jing Sheng Machinery, indicates potential investment opportunities driven by solid fundamentals and industry trends [1][3]. Group 1: Institutional Research and Stock Performance - 381 companies were involved in institutional research this week, with approximately 70% experiencing price increases [1]. - Jing Sheng Machinery attracted attention from 115 institutions, surpassing other popular stocks, indicating strong interest in its business prospects [1][3]. Group 2: Valuation Screening - The first investment principle emphasizes valuation screening, focusing on the company's "cost-performance" ratio within its industry rather than just a low PE ratio [3]. - Jing Sheng Machinery operates in the semiconductor equipment sector, particularly in silicon carbide, which is a high-growth area, and its current valuation appears reasonable based on its financial performance [3][4]. Group 3: Fundamental Screening - The second principle highlights the importance of fundamental screening, with institutions focusing on Jing Sheng Machinery's core silicon carbide and semiconductor businesses [4]. - The company has begun mass production of silicon carbide crystal growth furnaces, indicating technological validation and market readiness [4]. Group 4: Industry Trends - The third principle involves screening for industry trends, with Jing Sheng Machinery positioned in the semiconductor equipment sector, particularly benefiting from the growth in new energy vehicles and photovoltaic industries [5]. - The demand for silicon carbide is driven by the need for efficient power devices, making it a critical component in these expanding markets [5]. Group 5: Investment Strategy - The stock price of Jing Sheng Machinery has shown volatility due to institutional research, but a long-term investment strategy should focus on valuation, fundamental performance, and industry trends [6]. - Investors are advised to wait for a price correction to a more reasonable valuation before making investment decisions, rather than chasing short-term price movements [6].

Group 1 - Nvidia plans to replace silicon with silicon carbide (SiC) for the intermediate substrate material in the advanced packaging process of its next-generation Rubin processor [1] - TSMC and compound semiconductor manufacturers are involved in the development of 12-inch single crystal silicon carbide thermal substrates [1] Group 2 - Ruina Intelligent is actively advancing the sampling and verification of 8-inch silicon carbide substrates [2] - Chervit has a series of short-channel silicon carbide MOSFET devices and manufacturing technology [2] - Yuhuan CNC is progressing in the sampling and sales of silicon carbide equipment for material processing [2] - Pairui Co., Ltd. includes silicon carbide devices in its IPO fundraising projects [2] - Wenzhou Hongfeng is in the research phase of high-purity silicon carbide powder and related projects [2] - Xinrui Technology has launched bidirectional charging technology based on third-generation silicon carbide technology [2] - Galaxy Microelectronics produces power devices including silicon carbide MOSFETs for automotive applications [2] Group 3 - Mind Electronics is strategically laying out in both silicon-based and silicon carbide devices [3] - Libang Co., Ltd. has invested in Zhanxin Electronics, which provides power conversion solutions centered on SiC power driver chips and modules [3] - Delong Laser's products are applied in the cutting of silicon carbide and other third-generation semiconductors [3] - Blue Ocean Card Screen is involved in the development of silicon carbide semiconductor IGBT modules for BYD [3] - Derun Electronics is a pioneer in mass-producing 22kW 800V high-power devices using third-generation semiconductor technology [3] Group 4 - Dongni Electronics aims to achieve an annual production of 120,000 silicon carbide semiconductor materials by 2023 [4] - Jinbo Co., Ltd. provides high-performance thermal field materials for silicon-based and silicon carbide semiconductor fields [4] - Zhongtian Rocket's silicon carbide products are used in aerospace composite materials and semiconductor coatings [4] - Kema Technology specializes in ultra-high purity silicon carbide products with a purity of 99.99% [4] Group 5 - Yunnan Mingye focuses on research in dislocation density and silicon carbide single crystal materials [6] - National Science Microelectronics has a subsidiary that specializes in the sales of silicon carbide power devices [6] - Jiejie Microelectronics holds patents related to silicon carbide and is involved in the packaging of silicon carbide devices [6] - Zhenhua Technology's semiconductor power devices and silicon carbide products are applied in high-power electric drive systems [6] Group 6 - Jing Sheng Machine Electric is a leader in crystal growth equipment and has developed silicon carbide crystal growth equipment [7] - Silan Microelectronics has a production line for 6-inch silicon carbide power devices with a capacity of 3,000 pieces per month [7] - Tongfu Microelectronics has the capability to package third-generation silicon carbide semiconductors [7] - Sanan Optoelectronics is a leader in the silicon carbide full industry chain [7] - Northern Huachuang is a leading domestic semiconductor equipment manufacturer with a significant market share in silicon carbide [7]

Group 1: Opportunities for Domestic Substitution - Domestic companies are making significant technological breakthroughs in the silicon carbide (SiC) sector, narrowing the gap with international leaders, particularly in the electric vehicle (EV) market [2] - In 2023, China's market share of SiC epitaxial wafers reached 38.8%, ranking first globally, driven by increased production capacity [3] - National policies are increasingly supportive of key semiconductor materials, with the "14th Five-Year Plan for Integrated Circuit Industry" emphasizing the need to overcome technological bottlenecks in third-generation semiconductor materials [4] Group 2: Restructuring Industry Landscape - The core competitiveness of the SiC industry chain lies in the self-sufficiency of upstream materials and equipment, with companies mastering key equipment and high-end materials poised for rapid growth [5] - Domestic companies are accelerating their catch-up in device manufacturing, especially in automotive-grade SiC power devices, benefiting from the continuous growth of the EV market [6] - The application scenarios for SiC are expanding beyond EVs to include photovoltaic power generation, rail transportation, and industrial power supplies, positioning domestic companies for significant global market presence [7] Group 3: Dual-Driven Growth of Domestic Breakthroughs - Chinese companies have established a significant cost advantage through continuous R&D and process innovation, with 6-inch substrate prices at only 30% of international levels [8] - The acceleration of equipment localization is exemplified by Northern Huachuang's new generation SiC crystal growth furnace, which reduces equipment prices by 50% and surpasses key performance indicators [9] Group 4: Market Opportunities for Domestic SiC - The EV market is the largest application for SiC, with projected production and sales of 12.888 million and 12.866 million units in China for 2024, reflecting year-on-year growth of 34.4% and 35.5% [12] - In the photovoltaic and energy storage sectors, SiC is a key technology for improving system efficiency, with China's new photovoltaic installations expected to reach 277.2 GW in 2024, a 27.8% increase [13] - Emerging technologies such as AI data centers and AR glasses present new growth opportunities for the SiC industry, with AI data centers requiring high-efficiency power modules [14] Group 5: Benefiting Companies - Tianyue Advanced is one of the few global participants capable of mass-producing 8-inch SiC substrates, with a projected global market share ranking second in conductive SiC substrate materials by 2024 [16] - Tianshuo He Da is the largest domestic supplier of power electronics SiC substrates, holding a 17.3% share in the global market, and is positioned to capture orders following Wolfspeed's bankruptcy [16] - Sinda Semiconductor is making progress in the SiC sector, with its SiC MOSFET modules for passenger vehicle motor controllers seeing increased volume [16] - Mind Electronics, through its subsidiary Guangxin Microelectronics, is expected to achieve an annual production capacity of 36,000 6-inch SiC wafers, with costs significantly lower than competitors [17]