A-share subscription | Chaochun Yingcai (301717.SZ) has opened for subscription, becoming one of the very few suppliers of core components for semiconductor etching equipment with a process node of 5nm and below in China.

On July 31, Ultra-Pure Materials (301717.SZ) opened for subscription with an offering price of 65.99 yuan per share and a subscription limit of 5,000 shares. The price-to-earnings ratio is 36.38 times, and it is listed on the Shenzhen Stock Exchange, with Huatai United Securities as its sponsoring institution. The prospectus shows that Ultra-Pure Materials is a national-level specialized "little giant" enterprise focused on special coating processes and related technologies and materials. It primarily serves the fields of chip manufacturing and precision optics, providing precision component products and services after material modification, precision surface processing, precision cleaning, and special coating processes. The company is one of the few suppliers of core components for semiconductor etching equipment at 5nm process nodes and below in China. Semiconductor equipment constitutes the majority of capital expenditures in the semiconductor manufacturing sector. According to Gartner statistics, semiconductor equipment investments in wafer fabs typically account for 70%-80% of capital expenditures in semiconductor manufacturing, far exceeding expenditures for land and facilities. Furthermore, as process technology advances, the proportion of equipment investment is expected to increase. When the integrated circuit process reaches 16-14 nanometers, equipment investment may account for as much as 85%. The semiconductor manufacturing process involves numerous detailed steps, with applications of semiconductor equipment in the industry chain mainly divided into two categories: front-end wafer fabrication and back-end packaging and testing. Among them, the front-end wafer fabrication process represents the largest segment of capital expenditures for integrated circuit manufacturing, accounting for approximately 80% of semiconductor equipment investments. Key equipment involved includes thermal processing equipment, lithography equipment, coating and developing/de-coating equipment, etching equipment, ion implantation equipment, thin film deposition equipment, and cleaning equipment. Among these, etching equipment and thin film deposition equipment are considered the three main types of front-end wafer fabrication equipment, alongside lithography equipment, and they represent the highest value equipment types within front-end devices. According to SEMI data, the global semiconductor equipment market size has grown from $59.6 billion in 2019 to $117.1 billion in 2024, with a compound annual growth rate of 14.46% from 2019 to 2024. In 2023, affected by the global semiconductor industry layout, the global semiconductor equipment market size briefly stagnated in growth. However, it is expected to restore growth momentum in 2024 and set a new historical high, with the market size projected to continue growing to $133 billion, $145 billion, and $156 billion from 2025 to 2027. According to SEMI data, in 2020, mainland China became the largest semiconductor equipment market in the world for the first time with sales of $18.7 billion, and it is expected to maintain this position through 2025, with this market status forecasted to persist until the end of the SEMI data forecasting period in 2027. From 2013 to 2024, mainland China's semiconductor equipment sales increased by $46.1 billion, with a compound annual growth rate of 27.68%, significantly exceeding the growth rate of the global market during the same period. In 2024, mainland China's semiconductor equipment market size is expected to reach $49.55 billion, a year-on-year increase of 35.38%, further accelerating growth. By 2024, the share of mainland China's market size in the global market is projected to reach 42.31%, an increase of approximately 7.88 percentage points compared to 2023. In terms of financial performance, in the fiscal years 2023, 2024, and 2025, the company expects to achieve revenues of approximately 169 million yuan, 257 million yuan, and 496 million yuan, respectively. During the same periods, net profits are expected to be approximately 64.8052 million yuan, 82.263 million yuan, and 185 million yuan.