Core Viewpoint - The advancement of semiconductor localization has led to the emergence of several strong companies in the photoresist sector, providing high-quality products that empower the rapid development of the semiconductor industry [1] Company Summaries - **Jiu Ri New Materials (Stock Code: 688199)**: Jiu Ri New Materials has established a full industry chain layout, becoming the world's largest supplier of photoinitiators and a potential dark horse in the photoresist field. With over 20 years of experience in chemical synthesis and process optimization, the company has developed more than 30 semiconductor photoresist formulations, achieving bulk supply after successful testing by downstream customers. The order volume has reached a ton-level scale, with photoinitiators achieving large-scale sales across various sectors including display panels and semiconductor chip production [3] - **Rongda Photosensitive (Stock Code: 300576)**: Rongda Photosensitive focuses on the research, production, and sales of photoresist products, primarily G-line and I-line photoresists. The company plans to launch its semiconductor photoresist production line in 2025, targeting the packaging market [4] - **Tongcheng New Materials (Stock Code: 603650)**: Tongcheng New Materials operates as a platform enterprise for new materials, covering photoresists (semiconductor/display), specialty rubber additives, and biodegradable materials. Its subsidiary, Beijing Kehua, focuses on semiconductor photoresists, achieving a high domestic market share for KrF photoresists, while ArF photoresists have passed customer validation and are in continuous mass production. EUV packaging photoresists are currently in the research and development stage [5] - **Nanda Optoelectronics (Stock Code: 300346)**: Nanda Optoelectronics' main business includes advanced precursor materials, electronic special gases, photoresists, and supporting materials. Its semiconductor materials cover ArF photoresists and electronic special gases, applicable in the manufacturing of chips with a process node of 28nm and above [6] - **Shanghai Xinyang (Stock Code: 300236)**: Shanghai Xinyang is dedicated to providing integrated solutions for key process materials, supporting equipment, application processes, and on-site services for integrated circuits. Its product offerings include KrF photoresists, wafer-level packaging photoresists, electroplating solutions, and cleaning agents, serving the manufacturing of storage and logic chips [7]

Core Insights - The company reported a revenue of 768 million yuan for the first half of 2025, marking a year-on-year increase of 10.68% and a return to profitability with a net profit of 69.75 million yuan [1] - In Q2 2025, the company achieved a revenue of 398 million yuan, a year-on-year growth of 9.33% and a quarter-on-quarter increase of 7.58% [1] Financial Performance - The high-purity chemicals segment generated a revenue of 451 million yuan in H1 2025, reflecting a year-on-year growth of 22.5% [2] - The sales volume of high-purity hydrogen peroxide increased by over 55% year-on-year, while high-purity ammonia, sulfuric acid, and nitric acid saw sales growth of 8.5%, 86.2%, and 48.4% respectively [2] - The gross margin for high-purity chemicals improved by 13.4 percentage points to 24.6% due to increased production capacity utilization and lower raw material prices [2] - The company's light-sensitive resin business achieved a revenue of 106 million yuan in H1 2025, with a year-on-year growth of 12.4% [2] - The lithium battery materials segment reported a revenue of 105 million yuan, a year-on-year decline of 15.7% primarily due to a more than 12% drop in the price of the core product NMP [2] Market Trends - The semiconductor materials market is expected to grow, driven by increasing wafer production due to AI demand, with a projected global market size of approximately 70 billion USD for wet cleaning chemicals by 2029 [3] - The domestic market for light-sensitive resins in China is forecasted to reach 6.8 billion yuan for ICs, 6.7 billion yuan for emerging displays, and 4.4 billion yuan for PCBs in 2025, with respective year-on-year growth rates of 4.5%, 3.1%, and 17.3% [3] Profit Forecast and Valuation - The company’s profitability is expected to improve due to lower raw material prices and enhanced capacity utilization, with projected net profits of 101 million, 134 million, and 178 million yuan for 2025-2027 [4]

Core Viewpoint - The global and Chinese photoresist market is experiencing growth driven by the semiconductor and display panel industries, with future demand expected to increase significantly despite recent fluctuations in specific sectors [5][10]. Group 1: Global Photoresist Market Overview - The global photoresist market size is expected to grow at an annual rate of approximately 5% from 2022 to 2027, despite a 2% decline in 2022 due to decreased demand in the new display industry [5]. - In the semiconductor sector, the global market size reached $573.5 billion in 2022, with a year-on-year growth of 3.2%, and photoresist consumption in this sector was approximately 23.8 billion yuan, growing by 8% [6]. - The new display panel market saw a decline in 2022, with a total shipment area of 237 million square meters, down 4.3%, leading to a 19% decrease in photoresist consumption to about 12.6 billion yuan [7]. - The PCB industry is projected to grow at an average annual rate of 4% from 2022 to 2027, with photoresist consumption in this sector reaching approximately 16.3 billion yuan in 2022, a 2% increase [9]. Group 2: Chinese Photoresist Market Overview - China's photoresist demand is expected to grow at an average annual rate of 7% from 2022 to 2027, despite the market size remaining stable in 2022 compared to 2021 [12]. - In the semiconductor sector, China's photoresist consumption reached 4.6 billion yuan in 2022, with a growth rate of 15%, and is expected to grow at 10% annually over the next five years [13]. - The new display sector in China saw a decline in photoresist consumption to 6.1 billion yuan in 2022, down 13%, but is projected to grow at 8% annually in the coming years [14]. - The PCB industry in China had a total output value of $43.6 billion in 2022, with photoresist consumption reaching approximately 10.1 billion yuan, a 3% increase [16]. Group 3: Development Status of China's Photoresist Industry - The domestic production rate of photoresists is relatively low, with significant reliance on imports for semiconductor and display panel photoresists [19]. - Several domestic companies have made progress in the production of G/I line photoresists, with KrF photoresists seeing some successful local production [25]. - The market for TFT positive photoresists is dominated by foreign companies, with domestic production accounting for about 20% of the total market [32]. - The PCB photoresist market is characterized by a growing domestic supply of wet film photoresists and imaging solder masks, with a current domestic production rate of approximately 55% [36]. Group 4: Challenges and Future Prospects - The high technical barriers in the photoresist industry and the need for collaboration with lithography equipment manufacturers pose challenges for rapid domestic development [19]. - There is a significant opportunity for domestic companies to increase their market share in high-end photoresists, as the current production capabilities are still limited [42]. - Ongoing projects in China aim to enhance the production capacity of photoresists and related materials, indicating a strong push towards achieving greater self-sufficiency [41].

Group 1 - The global photoresist market is expected to grow at an annual rate of approximately 5% from 2022 to 2027, despite a 2% decline in 2022 due to a drop in demand from the new display industry [4][9] - In the semiconductor sector, the global market size reached $573.5 billion in 2022, with a year-on-year growth of 3.2%, and the consumption of photoresist was approximately 23.8 billion yuan, an increase of 8% [5] - The new display panel market saw a decline in output area by 4.3% in 2022, leading to a 19% decrease in photoresist consumption in this sector [6] Group 2 - China's photoresist demand is projected to grow at an average annual rate of 7% from 2022 to 2027, despite a stagnation in 2022 [9] - In the semiconductor field, China's actual production capacity for 12-inch wafers reached 1.37 million pieces per month in 2022, with a year-on-year growth of 32% [10] - The consumption of photoresist in China's semiconductor industry was 4.6 billion yuan in 2022, reflecting a 15% increase [10] Group 3 - The domestic photoresist production capacity is significantly lower than market demand, with most production focused on PCB photoresist [14] - High-end photoresist products are still largely dependent on imports, with the most advanced domestic semiconductor photoresist being KrF photoresist [15][19] - The key raw materials for photoresist production are primarily imported, leading to a low domestic production rate for these materials [16][31] Group 4 - Several domestic companies have achieved breakthroughs in the production of G/I line photoresists, with KrF photoresist seeing some mature products [19][23] - The TFT positive photoresist market is dominated by foreign companies, with domestic suppliers achieving a 20% market share [26] - The PCB photoresist market is characterized by a tripartite structure among Japan, Taiwan, and mainland China, with domestic companies achieving a 55% localization rate for wet film photoresist [29][30] Group 5 - The Chinese photoresist industry faces significant challenges, including a large technological gap and weak engineering capabilities [37] - The reliance on single-source imports for key raw materials and equipment poses a high supply chain risk for the industry [38]