The heavy press conference from a couple of days ago has left quite an impression.
Yang’s mother set the tone right from the start: “Today’s press conference does not involve short-term policies.” In plain language, this means:“The market at this point is satisfactory, stop thinking about stimulus measures.”
The village chief’s summary directly revealed the KPI: The “science and technology content” of the A-shares must be increased, and volatility must be reduced. A few days ago, CITIC Securities pressed down with tens of billions in funds, showcasing the government’s muscle, telling you what ‘strength’ means.
So what does this mean? The script has already been written: the market must stabilize; the main line must be technology!
The above is purely a joke, do not take it into reality, haha!
Technology stocks are the main players in the recent market, this is obvious, and I am not envious!!! So the question arises, among the technology stocks that have already risen, is there still an “undiscovered value pit”?
The answer is: Yes!
It lies in the critical link of packaging and testing, and it is represented by the leading enterprise, Changdian Technology, which is the third globally and the first domestically.Changdian Technology.
1. Performance Analysis: Revenue Soars, Profit Dragging Behind?
First, let’s look at the fundamentals. In the first half of 2025, Changdian Technology’s revenue reached 18.6 billion yuan, a year-on-year increase of 20%. This growth rate not only outpaces the industry but also indicates a subtle change in its revenue structure.
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Solid Foundation: The two pillar businesses, communication electronics (38.1%) and computing electronics (22.4%), are as solid as a rock.
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New Engine Ignition: The automotive electronics business skyrocketed by 34.2%, and the industrial and medical sectors also surged by 38.6%.
This clearly indicates that the company is successfully transitioning from relying on consumer electronics to the high-value-added “hard technology” track.
So why did net profit decline by 24%?
This is not a thunderstorm, but rather a strategically chosen “investment phase”. The money is mainly spent in three areas:
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New bases are in the “burning money to raise children” stage: Jiangyin, Shanghai, and South Korea’s three new bases are in the product introduction phase, with yield ramp-up and depreciation dragging down profits;
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R&D investment has increased significantly: R&D expenses approached 1 billion yuan, a year-on-year increase of 20.5%;
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Financial expenses surged after acquisitions: Due to the acquisition of Shengdie Semiconductor, interest expenses have skyrocketed.
In simple terms, the company has reinvested its earnings into a more valuable future.
2. Temporary Profit Pressure Is Not Scary, What Matters Is What the Investment Brings?
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AI Packaging: From “Spare Tire” to “Essential Need”.
Currently, for AI chips from Nvidia and Huawei, if the computing power cannot be stacked, they must “stack chiplets”, and Changdian’sXDFOI technology is the key to “stitching” multiple chiplets into a super chip.
Industry insiders reveal that a certain international giant’s H20 Chiplet version is about to go into mass production, and Changdian, as the only domestic packaging and testing factory with 2.5D/3D full-stack capabilities, has orders booked until 2026.
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Automotive Electronics: The Second Growth Curve Has Started.
Many silicon carbide power modules from Tesla, BYD, and NIO are packaged and tested by Changdian.
The Shanghai automotive chip base will start production in Q4, focusing on automotive-grade FCBGA packaging, expected to add annual revenue of 3 billion yuan, with a gross margin of over 35%.
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Storage Packaging and Testing: Acquiring Shengdie, Directly Taking the Shortcut.
After acquiring Shengdie, Changdian has jumped to become one of the top three global storage packaging and testing companies, mastering key technologies such as 32-layer flash memory stacking.
In Q4 2025, the 1TB storage chip for Apple’s iPhone 17 will be packaged and tested at the Shengdie base, with a single unit value increasing threefold.
3. Why Is It Considered the Current “Value Pit”?
Currently, the chip market is booming, but most funds are flowing into chip design and equipment sectors.
Packaging and Testing is a critical link that ensures the final performance and reliability of chips, and its value has not been fully recognized by the market. Changdian Technology, as the absolute leader in domestic packaging and testing and the third globally, has a particularly prominent “pit” attribute:
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Discrepancy Between Position and Increase: It is the most core target in the sector, but its increase this round has been relatively moderate, indicating a need for catch-up.
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Clear Expectations for Performance Turning Point: The current “construction projects” dragging down profits, once the new production lines pass the ramp-up period and start to scale, the profit elasticity will far exceed revenue growth.
This article is for company fundamental analysis only and does not serve as investment advice.