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In the production workshop of Ningbo Jiangfeng Electronic Materials Co., Ltd., goods ready to be shipped worldwide are piled high in the warehouse. This is an emerging Chinese semiconductor materials giant that is breaking foreign technology blockades and building its own moat for target materials.
In the first half of 2025, the company achieved operating revenue of 2.1 billion yuan, a year-on-year increase of 28.71%, demonstrating strong market expansion capabilities. In terms of net profit, the company achieved a net profit attributable to shareholders of 253 million yuan, a significant year-on-year increase of 56.79%. The net profit excluding non-recurring items was 176 million yuan, a year-on-year increase of 3.60%.
Regarding gross profit margin, the overall gross profit margin of the company is29.72%, a decrease of 4.11 percentage points year-on-year. However, the gross profit margin of the target material business reached 33.26%, an increase of 2.93 percentage points compared to the same period last year, indicating a continuous enhancement of the competitiveness of core products.
With a dual-driven business structure, target materials and components are developing in synergy. A clear dual-driven strategy of target materials and semiconductor components has been established. The ultra-high purity target materials business, as the core business of the company,achieved revenue of 1.325 billion yuan in the first half of 2025, a year-on-year increase of 23.91%, accounting for 63.26% of total revenue. The company’s target material products have reached international advanced levels, with shipments of wafer manufacturing sputtering target materials ranking among the top globally.
The semiconductor precision components business, as the second growth curve, is rapidly rising.In the first half of 2025, it achieved operating revenue of 459 million yuan, a year-on-year increase of 15.12%. The company has now achieved large-scale production of over 40,000 types of components, covering key areas such as gas distribution plates and etching machine silicon components.
In terms of market layout, the company’s domestic sales revenue is1.347 billion yuan, accounting for 64.33% of main revenue; foreign sales revenue is 747 million yuan, accounting for 35.67%. The company is actively promoting a global strategic layout, planning to build a semiconductor sputtering target production base in South Korea to better serve international customers such as SK Hynix and Samsung.
In terms of technological achievements, the company has accumulated784 authorized patents (482 invention patents) and participated in more than 20 major national and provincial projects. The high-purity 300mm silicon targets produced for advanced storage chips have achieved stable bulk supply, and the shipment volume of precision temperature-controlled heaters for wafer thin film deposition processes is gradually increasing.
From a valuation perspective, professional institutions hold an optimistic view on Jiangfeng Electronics’ future development. Dongxing Securities expectsthe company’s EPS for 2025-2027 to be **1.98 yuan, 2.41 yuan, and 2.98 yuan, maintaining a recommendation rating. Guojin Securities expects the company to achieve net profit attributable to shareholders of 533 million/689 million/924 million yuan for 2025-2027, with year-on-year growth of +33%/+29%/+34%, corresponding to current P/E ratios of 40, 31, and 23 times, maintaining a positive rating.
The company’s private placement plan also shows the management’s confidence in future development. The company plans to raise no more than1.948 billion yuan through private placement for the industrialization projects of producing 5,100 electrostatic suction cups for integrated circuit equipment and 12,300 ultra-high purity metal sputtering targets for ultra-large-scale integrated circuits.
Based on the current business development trend and industry environment, Jiangfeng Electronics is expected to show the following development trends in the remaining time of 2025. Profitability is gradually improving, and as the production capacity of semiconductor precision components is released and scale effects are formed, the company’s gross profit margin is expected to gradually rebound. The second quarter may be the low point of the company’s performance, with subsequent quarters expected to improve sequentially.
The target material business is steadily growing, and the company continues to strengthen the competitiveness of advanced process products, striving to expand global market share, with continuous increases in orders from domestic and international customers, and the target material business is expected to maintainan increase of over 20%.
The components business is accelerating, and as new products complete technical breakthroughs and move from trial production to mass production, the semiconductor precision components business is expected to grow rapidly.
The deepening of global layout, the advancement of the South Korean production base construction will further enhance the company’s ability to serve international customers and strengthen cooperation with the international supply chain.
It should be noted that the company’s accounts receivable are relatively large. As of the end of the first half of 2025, accounts receivable amounted to 1.061 billion yuan, accounting for as high as 264.98% of the latest annual report’s net profit attributable to shareholders. This may put some pressure on the company’s capital turnover.
Currently, the global semiconductor industry is experiencing a wave of recovery, with emerging demands such as AI, 5G, and automotive chips exploding. Jiangfeng’s multiple semiconductor precision component production bases have been completed and put into production one after another. Although short-term profitability is under pressure, profitability is expected to steadily improve as production capacity is gradually released.
Jiangfeng is no longer just a simple material supplier but is growing into a key innovator in the semiconductor industry chain. This leading Chinese semiconductor materials company is proving its value through practical actions and injecting strong momentum into the country’s semiconductor industry’s self-control.
On weekends, I want to talk about two interesting things. Previously, I mentioned that eSIM cards are the future trend. This time, Apple has made the iPhone Air the first model to support only eSIM cards, taking the lead in this area. I believe that soon, domestic companies will follow suit, and this will become the mainstream method in the near future, while traditional SIM cards will eventually become history like IC phone cards. Currently, there are not many companies related to eSIM cards in China, so it is worth paying attention to.
This year, it is no longer a surprise that public funds are heavily invested in the AI sector. In the future, this should become a norm, as AI will have more and more application scenarios. Moreover, it will bring revolutionary changes across various industries, and this narrative is long-term. Therefore, everyone should believe early, rather than waiting until others are leaving the table to rush to pay the bill.
Tomorrow the market will open again. This time, it has broken through the previous high, but the progress has not been very smooth; it is still in a strong fluctuation. At this position, whether it goes directly up or adjusts, it is likely to be a small wave in the upward trend.
Why do I say this? If you look at the data released in August, you should have an idea. In August, 1.2 trillion yuan of funds entered the market. Household deposits are still around 160 trillion yuan. Look at this data, what do you think? Don’t forget that we are currently in a downward interest rate cycle, so there are no good assets to allocate. If the stock market starts to show a profit effect, deposits will flow into the market, pushing prices up. This forms a virtuous cycle that is not something that can be completed in the short term. Therefore, those who are still in the early stages are not wrong.
Alright, that’s all for today. In the stock market, you can only earn money within your cognitive limits, which is based on evidence. Money earned by luck should not be returned based on strength. It is very difficult to make big money here, and you must be willing to refine yourself, have your own way of thinking, and operational system. So this path is not easy. Everyone, have a happy weekend!