Summary of Conference Call on China Semiconductors Industry Overview - The conference call focused on the semiconductor equipment industry in China, specifically discussing the companies NAURA, AMEC, and Piotech. Key Points Company Performance and Outlook 1. **Piotech's Growth Potential**: Piotech is expected to capture a 58% upside in the next 12 months, driven by rapid EPS growth and currently trading at 30X 2026E EPS, indicating it is underappreciated [2][5][10]. 2. **Order Growth**: All three companies (NAURA, AMEC, Piotech) reported over 40% order growth year-over-year in 1H25, with Piotech's management indicating alignment with industry growth [3][4]. 3. **Profitability Variations**: While Piotech is expected to see a recovery in gross profit margin (GPM) and normalization of R&D expenses, AMEC faces pressure due to high R&D ratios [4][69]. Financial Projections 1. **Piotech's Financials**: - Projected revenue growth of 40% in 2025E, 38% in 2026E, and 31% in 2027E, with a significant EPS increase expected [11][12]. - EPS is projected to grow from RMB 3.52 in 2025E to RMB 6.31 in 2026E, reflecting a 79% increase [12][23]. - GPM is expected to stabilize around 38.4% in 2025E and improve to 43.5% in 2026E [15][21]. 2. **NAURA's Financials**: - Revenue projections for NAURA are set at RMB 38.8 billion in 2025E, growing to RMB 62.1 billion by 2027E, with a GPM of 42.7% in 2025E [46][48]. - EPS is expected to reach RMB 10.61 in 2025E, with a growth rate of 35% [54]. 3. **AMEC's Financials**: - AMEC's revenue is projected to grow at 34% in 2025E, with a significant reduction in GPM to 40% due to increased R&D expenses [69][70]. - EPS is expected to be RMB 5.45 for 2026E, maintaining a P/E multiple of 55x [70]. Investment Recommendations 1. **Price Targets**: - Piotech's price target raised to CNY 300 from CNY 280, indicating strong upside potential [5][10]. - NAURA's price target increased to CNY 450 from CNY 400, reflecting confidence in its market position [5][45]. - AMEC's price target remains at CNY 300, despite profitability concerns [5][70]. R&D and Capital Expenditures 1. **R&D Discipline**: Piotech has shown a disciplined approach to R&D, maintaining a lower expense ratio compared to peers, which is expected to benefit its net profit margin (NPM) [4][11]. 2. **Investment in Infrastructure**: Piotech announced plans to raise RMB 4.6 billion for a semiconductor equipment industrialization base and a cutting-edge technology R&D center [13][14]. Market Sentiment 1. **Positive Sentiment**: The overall sentiment in the semiconductor equipment market is optimistic, with expectations of continued order growth and profitability improvements for Piotech, NAURA, and AMEC [3][4][8]. Additional Insights - The shift in order growth dynamics, particularly in advanced logic and memory sectors, is expected to benefit all three companies in the coming years [3][43]. - The competitive landscape is intensifying, with all companies facing pressure on margins due to increased R&D investments and changing accounting rules [4][69]. This summary encapsulates the key insights and projections discussed during the conference call, highlighting the growth potential and challenges faced by the semiconductor equipment companies in China.

Core Insights - The Shanghai and Shenzhen 300 Index increased by 1.38% during the week of September 8-12, 2025, with the machinery equipment sector rising by 3.52%, ranking 7th out of 31 in the Shenwan industry classification [1][2] - The laser equipment sub-sector performed the best, with a growth of 10.13%, while the overall machinery equipment industry saw a PE-TTM valuation increase of 3.43% [1][2] Industry Developments - In the humanoid robot sector, a significant order worth nearly 500 million yuan was signed between Zhihui Square and Huizhi Internet of Things, marking the large-scale entry of humanoid robots into the semiconductor display industry. Over 1,000 robots will be deployed at Huike's global production base over the next three years [3] - The domestic semiconductor equipment sector is accelerating its progress in technology validation and order conversion, with a focus on enhancing core products for advanced processes and packaging. Tuojing Technology plans to raise up to 4.6 billion yuan for its industrialization base and R&D center [3] - In the controlled nuclear fusion field, recent advancements in technology and policy have been noted, including the successful acceptance of the ion cyclotron heating system in the CRAFT project, which has achieved significant breakthroughs in high-power RF heating technology [4][5] Investment Recommendations - Attention is recommended for leading robot manufacturers that are accelerating cost reduction and channel expansion, particularly core component suppliers such as Deka Motor Holdings and Zhongdali De [6] - The advanced packaging industry is expected to benefit from sustained demand for key equipment, with companies like Shengmei Shanghai and Changchuan Technology being highlighted [6] - The nuclear fusion sector is seeing increased activity, with recommendations to focus on companies involved in superconductors, thermal control, and plasma measurement technologies, such as Western Superconductor and Jiu Li Special Materials [6]

Core Viewpoint - The company,拓荆科技, is intensifying its focus on the high-end semiconductor equipment sector by planning a private placement to raise up to 4.6 billion yuan for industrialization, technology research, and working capital, aiming to enhance its core competitiveness in the thin film deposition equipment field [1][2]. Group 1: Fundraising and Investment Plans - The company plans to raise no more than 4.6 billion yuan through a private placement, targeting up to 35 investors, with the issuance not exceeding 30% of the pre-issue total share capital, equating to a maximum of 83.92 million shares [2]. - The raised funds will be allocated to three main areas: 1.5 billion yuan for the construction of a high-end semiconductor equipment industrialization base, 2 billion yuan for the establishment of a cutting-edge technology research center, and 1.1 billion yuan for supplementing working capital [2][3]. Group 2: Financial Performance - Since its establishment in 2010, the company has focused on independent research and innovation, developing various thin film equipment widely used in integrated circuit manufacturing [4]. - The company has experienced rapid revenue growth since its listing in 2022, with revenues of 1.706 billion yuan, 2.705 billion yuan, and 4.103 billion yuan projected for 2022, 2023, and 2024 respectively, alongside net profits of 368 million yuan, 663 million yuan, and 688 million yuan, marking three consecutive years of growth [4]. - In the first half of 2025, the company's net profit decreased by 26.96% year-on-year to 94 million yuan, but the adjusted net profit showed a significant increase of 91.35% year-on-year to 38 million yuan [5]. Group 3: Market Position and Future Outlook - The company aims to enhance its production capacity for high-end semiconductor equipment, supporting the industrialization of its PECVD, SACVD, and HDPCVD product lines, while improving production efficiency through smart facilities [3]. - The company has not engaged in equity financing since its IPO in 2022, with a total of 2.273 billion yuan raised, of which 2.128 billion yuan has been invested in expanding production and technology development [3].

Core Viewpoint -拓荆科技 announced a series of financing plans, including a capital increase to its subsidiary拓荆键科, aiming to raise up to 4.6 billion yuan to support the rapid development of three-dimensional integration equipment [1][4] Group 1: Financing Details - The financing plan includes a total of no more than 10.4 billion yuan for拓荆键科, with a pre-investment valuation of 2.5 billion yuan [1] - 大基金三期 plans to participate in the capital increase with no more than 450 million yuan, marking its first public investment since its establishment in May 2024 [1][2] - 国投集新 also intends to invest up to 450 million yuan, resulting in a 12.71% stake in拓荆键科 after the capital increase [1][2] Group 2: Company Overview - 拓荆键科, established in September 2020, focuses on the research and industrial application of advanced bonding equipment for three-dimensional integration [2] - The company has launched various products, including wafer-to-wafer bonding equipment and measurement devices, serving clients in advanced storage, logic, and image sensor sectors [2] Group 3: Market Context - Three-dimensional integration aims to overcome the physical limitations of traditional two-dimensional integration by stacking chips vertically, enhancing packaging efficiency and transistor density [3] - The technology is essential for maintaining the momentum of Moore's Law and addressing increasing market demands [3] Group 4: Financial Performance - In 2024, 拓荆键科 reported revenues of 97.3 million yuan and a net loss of 2.1 million yuan [4] - The company has experienced rapid revenue growth, with revenues of 1.706 billion yuan, 2.705 billion yuan, and 4.103 billion yuan in 2022, 2023, and 2024, respectively, reflecting a compound annual growth rate of 55.08% [4] Group 5: Project Implementation - The implementation of the projects will significantly enhance the production capacity of high-end semiconductor equipment and improve production efficiency through intelligent facilities [5] - The company plans to allocate 20 billion yuan for the construction of a cutting-edge technology research and development center, focusing on advanced thin film deposition equipment [6]

Core Viewpoint - Company plans to raise up to 4.6 billion yuan through a private placement of A-shares to fund high-end semiconductor equipment industrialization, advanced technology research center, and working capital [1][2][3] Fundraising Details - The total amount to be raised is capped at 4.6 billion yuan, with a maximum issuance of 83.92 million shares, not exceeding 30% of the company's total share capital prior to the issuance [2] - The net proceeds after deducting issuance costs will be allocated to high-end semiconductor equipment industrialization, advanced technology research, and working capital [2] Project Investments - The high-end semiconductor equipment industrialization project will focus on expanding thin film deposition equipment production, with an investment of 1.768 billion yuan over a 5-year construction period [2][3] - The advanced technology research center will receive an investment of 2 billion yuan to develop various advanced thin film deposition equipment and enhance core technologies [3] Strategic Objectives - The fundraising aims to significantly increase production capacity for high-end semiconductor equipment, enhance innovation capabilities, and strengthen product advantages [3] - The company seeks to leverage capital market advantages to improve financial strength, optimize asset-liability structure, and enhance core competitiveness and profitability [3] Financial Performance - In the first half of 2025, the company reported revenue of 1.954 billion yuan, a year-on-year increase of 54.25%, while net profit attributable to shareholders decreased by 26.96% to 94.288 million yuan [4] - The decline in net profit was attributed to high costs and low gross margins during the first quarter, but improvements in gross margin were observed in the second quarter as operational efficiency increased [4]

Core Viewpoint - The company plans to raise up to 4.6 billion yuan through a private placement to invest in high-end semiconductor equipment industrialization and advanced technology R&D projects, as well as to supplement working capital [1][2]. Group 1: Investment and Project Details - The company intends to invest 1.5 billion yuan in the high-end semiconductor equipment industrialization base, which is part of a project initially funded with 268 million yuan from its IPO [1]. - The new industrialization base will be located in Shenyang, Liaoning Province, and will include clean rooms, automated warehouses, and testing laboratories, incorporating advanced production technologies to create a scalable, intelligent, and digitalized facility [1][2]. Group 2: Business Growth and Market Demand - The company has experienced rapid growth in business scale due to strong downstream market demand, with revenue figures of 1.706 billion yuan in 2022, 2.705 billion yuan in 2023, and a projected 4.103 billion yuan in 2024, resulting in a compound annual growth rate of 55.08% [2]. - The current production capacity is expected to be insufficient to meet future customer orders, prompting the need for increased capacity through the new projects [2]. Group 3: Technological Advancements and Industry Impact - The project will focus on hardware innovation, control systems, software development, and high-performance film process development to enhance the R&D and optimization of new high-end film deposition equipment [3]. - This initiative aims to support the overall domestic transformation of the semiconductor industry chain and improve the security and autonomy of the domestic semiconductor supply chain [3].

9月12日晚间拓荆科技(688072)公告，公司拟定增募资不超过46亿元，扣除发行费用后的募集资金净额 拟投入高端半导体设备产业化基地建设项目、前沿技术研发中心建设项目并补充流动资金。其中，高端 半导体设备产业化基地建设项目系公司使用首次公开发行募集资金2.68亿元投资的项目，公司拟使用本 次募集资金15亿元对其进行追加投资。 据披露，高端半导体设备产业化基地建设项目拟在辽宁省沈阳市浑南区新建产业化基地，包括生产洁净 间、立体库房、测试实验室等，并引入先进的生产配套软硬件，打造规模化、智能化、数字化的高端半 导体设备产业化基地。 本次定增中，拓荆科技还拟使用募集资金11亿元用于公司及全资子公司补充流动资金。 拓荆科技表示，公司所处行业为资本密集型行业，需要在生产、研发及日常运营活动中进行大量而持续 的资金投入。近年来，公司业务规模逐渐扩大，产品市场需求及订单保持良好增长态势，最近三年营业 收入复合增长率达到55.08%。 与此同时，公司在原材料采购、人员薪酬、研发支出等资金支出项目及存货、应收账款等经营性项目的 资金占用项目亦随着收入快速增长而相应增加，仅依靠公司内部积累已经较难满足业务快速发展对资金 的需求 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has experienced rapid growth in Q2 2025, with significant increases in revenue and net profit driven by the successful mass production of new products [7][8] - The company's revenue for H1 2025 reached 1.954 billion yuan, a year-on-year increase of 54.2%, while the net profit attributable to shareholders was 0.94 billion yuan, a decrease of 27.0% due to high costs during the customer validation process [7] - The gross margin for H1 2025 was 31.9%, reflecting a year-on-year decrease of 15.1 percentage points, while the net profit margin was 4.2%, down 5.4 percentage points year-on-year [7] - The company has optimized its customer structure, leading to a significant increase in contract liabilities and inventory, with contract liabilities reaching 4.54 billion yuan, up 122.6% year-on-year [7] - The company has successfully delivered over 3,000 advanced reaction chambers, with its PECVD and ALD products gaining traction in the market [7] Financial Projections - The company is projected to achieve total revenue of 5.917 billion yuan in 2025, with a year-on-year growth rate of 44.2% [1][8] - The net profit attributable to shareholders is expected to reach 1.004 billion yuan in 2025, representing a year-on-year increase of 45.93% [1][8] - The earnings per share (EPS) is forecasted to be 3.59 yuan in 2025, with a dynamic P/E ratio of 53.40 [1][8]

Core Viewpoint - The company has implemented a special action plan for 2025 focused on quality improvement and efficiency enhancement, aiming to drive high-quality development and maintain its leading position in the domestic semiconductor equipment industry. Group 1: Focus on Core Business and Operational Optimization - The company continues to focus on its core business, enhancing the competitiveness of its main products through independent innovation and operational management [1][2] - The company has shipped over 3,000 equipment reaction chambers, entering more than 70 production lines [1] - The company has expanded the production scale of advanced PECVD and ALD equipment, achieving significant order growth in the advanced storage sector [2][3] Group 2: Deepening Customer Cooperation and Market Expansion - The company has maintained strategic cooperation with customers, responding to their needs for new processes and products, and has expanded its customer base [3][4] - The company has a full order book, indicating strong demand for its products [3] Group 3: Accelerating Investment Projects and Capacity Expansion - The company has completed the construction of its semiconductor advanced process equipment R&D and industrialization project, significantly enhancing its capacity [4][5] - The company is progressing with the establishment of a new high-end semiconductor equipment industrialization base [5] Group 4: Enhancing Operational Management for High-Quality Development - The company has upgraded its smart manufacturing execution system (MES) to improve production efficiency and monitoring [5][6] - A comprehensive quality management system has been established to ensure product performance and safety [6] Group 5: Strengthening Supply Chain and Talent Development - The company has enhanced its supply chain stability through collaboration and training with suppliers [6][7] - The workforce has grown to 1,569 employees, with ongoing training programs to improve management and technical skills [7] Group 6: Optimizing Performance Assessment and Shareholder Returns - The company has set performance indicators for management and staff, linking their performance to the company's operational results [7][8] - A cash dividend of approximately 75.18 million yuan has been distributed to shareholders, reflecting the company's commitment to shareholder returns [13] Group 7: Enhancing Information Disclosure and Investor Communication - The company has improved the quality of its information disclosure and actively engaged with investors through various platforms [14] Group 8: Strengthening Corporate Governance and Risk Management - The company has implemented a market value management system and focused on high-end semiconductor equipment, enhancing its core competitiveness [15][16] - The company has established an ESG framework to promote sustainable development and compliance with regulations [16]

Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 1.954 billion yuan, a year-on-year increase of 54.25%, with Q2 revenue reaching 1.245 billion yuan, up 56.64% year-on-year and 75.74% quarter-on-quarter [1] - The net profit attributable to shareholders in the first half of 2025 was 94.288 million yuan, a decrease of 26.96% year-on-year, while Q2 net profit was 241 million yuan, showing a significant year-on-year increase of 103.37% and a quarter-on-quarter increase of 388 million yuan [2] - The company's R&D investment reached 349 million yuan, an increase of 11.09% year-on-year, accounting for 17.87% of operating revenue [2] Group 2: Market and Product Development - The company has been focusing on high-end semiconductor equipment, particularly in thin film deposition and advanced bonding equipment for 3D integration [3] - The company has successfully expanded its customer base while consolidating partnerships with leading domestic wafer manufacturers, resulting in increased market penetration [1] - As of the report date, the company has shipped over 3,000 reaction chambers, including more than 340 new types, and has entered over 70 production lines, with cumulative wafer production exceeding 343 million pieces [3] Group 3: Operational Efficiency - The company has seen a significant improvement in gross margin in Q2 2025 due to the completion of technology introduction and mass production breakthroughs of new products [2] - The reduction in expense ratio year-on-year has contributed to the release of profit space as operational efficiency improves [2] - The contract liabilities reached 4.536 billion yuan, a growth of 52.07% compared to the end of 2024, indicating a solid foundation for sustained revenue growth [1]