Core Viewpoint - Torrens Precision Manufacturing (Jiangsu) Co., Ltd. has received acceptance for its IPO on the ChiNext board, with CICC as the sponsor, indicating a significant step towards raising capital for its operations in the precision metal components sector [1]. Company Overview - Torrens is a leading comprehensive service provider in the R&D, production, and sales of precision metal components, focusing on high-performance key process components for semiconductor equipment [1]. - The company also covers the laser equipment field, providing necessary components for high-power lasers [1]. Financial Performance - The total assets of Torrens are projected to grow from 400.29 million yuan in 2022 to 1.365 billion yuan by June 30, 2025, reflecting a substantial increase [2]. - The net profit attributable to shareholders is expected to rise from 33.94 million yuan in 2022 to 60.85 million yuan in the first half of 2025 [2]. - The operating revenue is forecasted to increase from 282.1 million yuan in 2022 to 373.44 million yuan in the first half of 2025 [2]. - The company has shown a significant improvement in its asset-liability ratio, decreasing from 78.64% in 2022 to 38.16% by June 30, 2025 [2]. Shareholding Structure - The actual controller of Torrens is Qian Ke, who holds 100% of Torrens Shanghai and controls 48.2357% of the voting rights through various holding platforms [5]. - Key executives include Qian Ke as Chairman and CEO, with significant shareholdings in related companies [3][5]. Executive Compensation - In 2024, Qian Ke's total compensation is reported at 2.4854 million yuan, while CFO Xu Hongyan's compensation is 2.9031 million yuan [6].

Core Viewpoint - Torrens Precision Manufacturing (Jiangsu) Co., Ltd. has received approval for its IPO on the ChiNext board, aiming to raise 1.156 billion yuan for manufacturing and R&D projects, as well as to supplement working capital [1] Group 1: Company Overview - Torrens is a leading comprehensive service provider in the R&D, production, and sales of precision metal components, focusing on high-performance key process components for semiconductor equipment [1] - The company also covers the laser equipment field, providing necessary components for high-power lasers [1] Group 2: Financial Performance - From 2022 to 2025, Torrens achieved operating revenues of 283 million yuan, 291 million yuan, 610 million yuan, and 373 million yuan respectively [2] - The net profit attributable to the parent company for the same period was 34 million yuan, 15 million yuan, 106 million yuan, and 61 million yuan respectively [2] - The company’s total assets increased from 400.29 million yuan in 2022 to 1.365 billion yuan in 2025 [2] Group 3: Shareholding Structure - Qian Ke holds 100% of Torrens Shanghai and controls 48.2357% of the voting rights through direct and indirect shareholding [4] - Qian Ke is the actual controller of the company [4] Group 4: Management Background - Qian Ke has extensive experience, having served in various managerial roles since 2003, including positions at UFO Engineering, Shanghai Jinggong Precision Instruments, and Torrens [5] - In 2024, Qian Ke's compensation was reported at 2.4854 million yuan [6]

Investment Rating - The investment rating for the company is "Accumulate" (first time) [2] Core Views - The company is a leading manufacturer of precision components for semiconductor equipment in China, with a strong focus on high-end manufacturing capabilities and a complete delivery system [9][13] - The global semiconductor equipment market is expected to grow significantly, with the global semiconductor equipment sales projected to reach $125.5 billion in 2025, and the Chinese market expected to exceed $26.3 billion [9][27] - The company has shown steady revenue growth, with a projected revenue increase of 47.1% in 2024 and a 14.44% increase in the first half of 2025 [28][29] - The company is actively expanding its production capacity globally, with facilities in Shenyang, Nantong, Beijing, and Singapore to meet the increasing demand for precision components [9][37] Summary by Sections Company Overview - The company has been focused on precision component manufacturing for semiconductor equipment since its establishment in 2008, achieving significant milestones in technology and production capabilities [13][14] - It has developed a diverse product range, including process components, structural components, module products, and gas pipelines, which are essential for semiconductor manufacturing [19][20] Industry Outlook - The semiconductor manufacturing industry is experiencing a robust growth cycle, driven by the expansion of advanced process capacities [24][27] - The demand for semiconductor equipment is expected to increase, particularly in China, which is projected to maintain its position as the largest market for semiconductor equipment [27] Revenue and Profitability - The company’s revenue is expected to grow from approximately 20.65 billion yuan in 2023 to 69.82 billion yuan by 2027, with a compound annual growth rate of 37.33% [50][49] - The gross margin is projected to remain stable, with expected rates of 26.40%, 25.70%, and 25.73% for 2025, 2026, and 2027 respectively [49] Production Capacity and Globalization - The company is building a global production capacity matrix to enhance its responsiveness and risk management, with significant investments in local production facilities [37][38] - The establishment of a localized IP protection strategy has strengthened relationships with high-end clients and mitigated risks of technology leakage [39] Growth Strategy - The company is pursuing both organic growth and strategic acquisitions to enhance its product offerings and market position [42][45] - Continuous investment in R&D and process optimization is expected to drive future growth, with a focus on high-end products and advanced manufacturing techniques [43][44]

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage in the semiconductor equipment parts sector [5][7]. Core Views - The company is a leader in semiconductor equipment precision components, focusing on platform-based construction to create advantages across the entire supply chain [5][9]. - The global semiconductor wafer capacity is expected to grow significantly, driving demand for semiconductor equipment and components, with a projected compound annual growth rate (CAGR) of 7% from 2024 to 2028 for 12-inch wafer capacity [6][9]. - The company has established a strong technical foundation through independent research and development, enhancing its ability to provide comprehensive precision component solutions [6][9]. Summary by Sections Market Performance - The closing price is 72.36 yuan, with a market capitalization of 22,157.41 million yuan and a circulating market value of 12,823.17 million yuan [3]. Financial Forecast and Valuation - Revenue projections for 2023 to 2027 are as follows: 2,066 million yuan (2023), 3,040 million yuan (2024), 4,010 million yuan (2025E), 5,286 million yuan (2026E), and 6,951 million yuan (2027E), with growth rates of 33.75%, 47.14%, 31.94%, 31.80%, and 31.51% respectively [5][7]. - Net profit attributable to shareholders is forecasted to be 169 million yuan (2023), 203 million yuan (2024), 276 million yuan (2025), 448 million yuan (2026), and 633 million yuan (2027), with growth rates of -31.33%, 20.13%, 36.39%, 62.11%, and 41.27% respectively [5][7]. Company Overview - The company, founded in 2008, specializes in precision manufacturing of semiconductor equipment components, with a focus on metal materials [6][14]. - It has expanded its production capacity in multiple locations, including Shenyang, Nantong, Beijing, and Singapore, to enhance its supply capabilities [6][23]. Product Lines - The company’s main products include precision components for semiconductor equipment, categorized into mechanical and electromechanical components, and gas transmission systems [6][16]. - The mechanical and electromechanical components are expected to see revenue growth rates of 25.50%, 26.20%, and 26.30% from 2025 to 2027 [8]. Competitive Landscape - The semiconductor equipment parts market is projected to benefit from the expansion of wafer capacity, with the global semiconductor equipment sales expected to reach 125.5 billion USD in 2025, a 7.4% increase year-on-year [9][56]. - The company aims to enhance domestic semiconductor equipment independence by achieving mass production of critical components [6][65].