Research on PCB Equipment End Marking

Against the backdrop of the global semiconductor industry chain restructuring and the explosive demand for AI computing power, Chinese semiconductor equipment companies are experiencing unprecedented development opportunities. **Xingqi Microelectronics (688630)** and Dongwei Technology (688700)**, as leading companies in the domestic PCB equipment and electroplating equipment fields, are attracting significant market attention regarding their future development trajectories. This study focuses on the business prospects of these two companies from 2025 to 2027, providing investors with comprehensive decision-making references through in-depth analysis of their downstream customer structures, business development trends, and stock price elasticity.

Xingqi Microelectronics, established in 2008, is a high-tech enterprise focused on the research, development, manufacturing, and sales of direct imaging equipment and direct-write lithography equipment, with micro-nano direct-write lithography as its core technology. The company went public on the Sci-Tech Innovation Board in 2020, becoming the first domestic stock in the lithography equipment sector. Dongwei Technology, founded in 2005, primarily engages in the research, design, production, and sales of high-end precision electroplating equipment and its supporting devices. It was listed on the Sci-Tech Innovation Board in June 2021 and issued GDRs on the Swiss Stock Exchange in June 2023.

Currently, both companies are in a period of rapid business expansion.Xingqi Microelectronics achieved a revenue of 934 million yuan in the first three quarters of 2025, a year-on-year increase of 30.03%, with a net profit attributable to the parent company of 199 million yuan, up 28.20% year-on-year; Dongwei Technology reported a revenue of 757 million yuan during the same period, a year-on-year increase of 30.58%, with a net profit attributable to the parent company of 85.37 million yuan, up 24.80% year-on-year. More importantly, both companies showed accelerated growth in their third-quarter performance, with Xingqi Microelectronics reporting a net profit of 56.78 million yuan, a year-on-year increase of 4.41%; Dongwei Technology’s net profit in Q3 reached 42.86 million yuan, a staggering increase of 236.93%, indicating strong growth momentum.

This study will analyze from three dimensions: first, a comprehensive review of the downstream customer structure of both companies to clarify their position and customer stickiness in the industry chain; second, an in-depth analysis of the business development prospects for the next two years, including the growth potential of each business segment; finally, a comprehensive assessment of stock price elasticity to provide reference for investment decisions.

1. Downstream Customer Structure Analysis

1.1 Downstream Customer Structure of Xingqi Microelectronics

The customer base of Xingqi Microelectronics exhibits characteristics of **”global layout and high-end focus”**, having achieved full coverage of the top 100 PCB companies worldwide. According to the latest disclosed information, the company’s customer structure can be divided into three major segments: PCB, semiconductor, and new display fields.

Core customers in the PCB field include:

• Pengding Holdings: the largest PCB manufacturer globally, an important customer of the company, and indirectly holds company shares through Jingning Dingqing

• Shenzhen South Circuit: a leading domestic PCB enterprise, expected to perform outstandingly in the AI server PCB field in 2025

• Huadian Co., Ltd.: a leading enterprise in the high-frequency and high-speed board field, supplying to NVIDIA’s GB300 and other AI servers

• Shenghong Technology: a top 100 PCB enterprise, using Xingqi equipment in AI server PCB production lines in Thailand/Vietnam, with final products used in NVIDIA’s GB200 and other server platforms

• Shengyi Electronics: a leading domestic copper-clad laminate manufacturer, expanding production for smart computing center high-layer circuit board projects in 2025

• Other top 100 PCB enterprises such as Jingwang Electronics, Dingying Electronics, and Hongban Company

In terms of customer concentration, the customer structure of Xingqi Microelectronics is changing. In the first half of 2025, the revenue share of the top five customers reached 46.9%, with the largest single customer accounting for 19.7%, significantly up from 30.2% and 7.8% in 2024. This change reflects the deepening cooperation with leading customers but also brings certain customer concentration risks.

Customers in the semiconductor field are comprehensively laid out, covering sub-segments such as packaging and testing, IC substrates, and advanced packaging:

• Packaging and testing field: the three major domestic packaging giants, including Changdian Technology, Huatian Technology, and Tongfu Microelectronics

• IC substrate field: companies such as Xingsen Technology, Haoyuan Electronics, Mingyang Circuit, Baicheng Microelectronics, and Yingchuangli

• Advanced packaging field: companies like Shenghe Jingwei and Quliang Electronics, with the company’s WLP2000 wafer-level direct-write lithography equipment already receiving repeat orders from leading customers in the industry

Customers in the new display field are rapidly expanding:

• Visionox: the company’s NEX-W (white oil) model has successfully entered its supply chain

• BOE: successfully breaking through in 2025, screen sensor RTR equipment has been delivered, and LCD process exposure coding mass production equipment is about to be shipped

• Leading companies in the Mini/Micro LED field such as Chenxian Optoelectronics and Woge Optoelectronics

It is noteworthy that Xingqi Microelectronics’ customers have successfully entered the industry chains of NVIDIA and TSMC. Through PCB customers like Shenghong Technology, the company’s equipment is ultimately applied in NVIDIA’s GB200/GB300 AI servers; at the same time, the company’s equipment has been introduced to TSMC, with the first batch of orders amounting to 180 million yuan, and equipment gradually delivered to TSMC’s production lines in 2025.

1.2 Downstream Customer Structure of Dongwei Technology

The customer structure of Dongwei Technology exhibits characteristics of **”PCB as the main focus, new energy as a supplement, and global expansion”**, holding a leading position in the PCB electroplating equipment field.

PCB field customers cover domestic first-tier manufacturers:

• Pengding Holdings, Dongshan Precision, Jianding Technology, Shenzhen South Circuit, Huadian Co., Ltd. and other leading enterprises

• Hanyu Bode, Shenghong Technology, Xingsen Technology, Mingxing Electronics, and Chongda Technology and other mid-tier players

• Dingying Electronics, Shengyi Technology, Fangzheng Technology, and Aoshikang and other specialized manufacturers

Dongwei Technology has a prominent market position in the PCB electroplating equipment field, with a market share of over 50% for vertical continuous plating equipment (VCP). As of the end of 2023, the total shipment of VCP reached 1,200 units, including 150 units applied in the Apple supply chain. The company is continuously deepening its cooperative relationship with core customers, having received multiple important recognitions in 2025:

• Aoshikang: awarded the “Annual Strategic Cooperation Award”, further upgrading the cooperative relationship

• Shengyi Electronics: recognized as an “Excellent Supplier”, reflecting its technical strength in high-end board electroplating equipment

New energy field customers have achieved significant breakthroughs:

Dongwei Technology has become theonly company globally to achieve large-scale production of new energy lithium electroplating film equipment (“water electroplating”). Major customers include:

• CATL: the global leader in power batteries, with an installed capacity of 254.5GWh from January to August 2025, holding a market share of 36.8%

• BYD: the second-largest power battery supplier globally, with an installed capacity of 124.8GWh from January to August 2025, holding a market share of 18%

• Guoxuan High-tech, Zhongchuang Xinhang, Yiwei Lithium Energy, Xinwangda, Hive Energy, and Funeng Technology and other major domestic power battery enterprises

In the composite current collector equipment field, Dongwei Technology has become theonly company in China to achieve mass production of PET copper-plated magnetron sputtering equipment. In August and September 2025, the company signed three contracts totaling 1.7 billion yuan, accounting for 60% of revenue, fully reflecting the market’s recognition of its technology and products.

Significant achievements in overseas market expansion:

Dongwei Technology’s global layout is accelerating. Since issuing GDRs in Switzerland in 2023 and establishing a production base in Thailand, the company has accelerated its globalization pace.In the first half of 2025, the proportion of overseas revenue increased from less than 10% to over 20%, with orders mainly from Southeast Asia, the European Union, and other regions, primarily involving vertical continuous plating equipment and three-in-one horizontal plating equipment. The company’s products have successfully been exported to Japan, South Korea, Europe, North America, and other countries and regions.

1.3 Comparative Analysis of Customer Structures

Through comparative analysis, the customer structures of the two companies exhibit the following similarities and differences:

Similarities:

1. High overlap in the PCB field: Both companies’ core customers include leading domestic PCB manufacturers such as Pengding Holdings, Shenzhen South Circuit, Huadian Co., Ltd., and Shenghong Technology

1. Increased concentration of top customers: Both companies show a trend of deepening cooperation with top customers and increasing customer concentration

1. Accelerated global layout: Both are actively expanding overseas markets, especially in Southeast Asia

Differentiated Features:

1. Different customer stickiness: Xingqi Microelectronics has stronger customer stickiness due to its technological advantages in lithography equipment; Dongwei Technology faces more competition in the electroplating equipment field

1. Differences in emerging field layouts: Xingqi Microelectronics has a more comprehensive layout in semiconductor packaging and new display fields; Dongwei Technology has a clear advantage in the new energy battery field

1. Customer certification difficulty: Xingqi Microelectronics’ equipment has a higher technical threshold, leading to longer customer certification cycles, but once integrated into the supply chain, the cooperative relationship is more stable

In terms of customer quality, both companies possess high-quality customer resources and are moving towards high-end and global development. This customer structure provides a solid foundation for future business growth but also requires attention to customer concentration risks and downstream industry volatility risks.

2. Business Outlook for the Next Two Years

2.1 Business Outlook Analysis of Xingqi Microelectronics

The business development of Xingqi Microelectronics in the next two years will present a pattern of **”steady growth in PCB equipment, rapid breakthroughs in semiconductor equipment, and multiple new business developments”**.

PCB Equipment Business: Clear Trend Towards High-End

PCB equipment remains the company’s core business, accounting for nearly 80% of revenue. In the next two years, this business will benefit from three major trends:

1. AI servers driving explosive demand for high-end PCBs: The number of layers in AI server PCBs has risen to over 30, leading to a surge in demand for high-end products such as HDI boards and IC substrates. The company’s MAS series equipment has a minimum line width of 3-4μm, with performance comparable to top international brands, having completed pilot tests and achieved small batch deliveries with several leading customers. It is expected that from 2025 to 2026, the market size for AI-related PCB equipment will reach 5.6 billion and 10 billion USD, respectively.

1. Capacity transfer to Southeast Asia brings incremental demand: Countries in Southeast Asia, such as Thailand and Vietnam, are becoming important destinations for PCB industry transfer, with leading companies like Pengding and Shenghong Technology establishing factories locally. The order share from the company’s Thai subsidiary continues to rise, with expected equipment shipments in 2025 surpassing 1,000 units, a year-on-year increase of 150%.

1. Strong demand for equipment upgrades: As PCB technology continues to upgrade, existing production lines for exposure, etching, developing, drilling, and inspection equipment all require corresponding upgrades. As a leader in exposure equipment, the company will fully benefit from this trend.

According to brokerage forecasts, the revenue from Xingqi Microelectronics’ PCB equipment business is expected to reach 1.13 billion, 1.53 billion, and 1.88 billion yuan from 2025 to 2027, maintaining a compound growth rate of over 30%.

Semiconductor Equipment Business: Breakthrough from 0 to 1

The semiconductor equipment sector is expected to be the company’s biggest growth highlight in the future, currently accounting for only 0.64% of revenue, but with enormous growth potential. The company has achieved breakthroughs in several sub-segments:

1. IC substrate equipment achieves mass production breakthrough: The company’s self-developed MAS6P has successfully completed acceptance tests with leading customers in the packaging substrate sector and has entered mass production, receiving bulk orders. This equipment’s line width and spacing resolution capabilities reach 6/6μm, meeting the stringent mass production requirements for next-generation HPC/AI chips for high-end HDI and ICS packaging substrates.

1. Advanced packaging equipment receiving repeat orders: The WLP2000 wafer-level direct-write lithography equipment has received repeat orders from leading customers in the industry and is undergoing acceptance tests for mass production with multiple customers. This equipment achieves a precision of 2 microns and has a high level of technological maturity, expected to enter a growth phase from 2025 to 2026.

1. Bonding equipment opens new avenues: In April 2024, the company launched the WA8 wafer alignment machine and WB8 wafer bonding machine, both of which are critical equipment in the semiconductor processing process, applicable in advanced packaging and MEMS production scenarios requiring sub-micron alignment. The expected unit price of the equipment is in the millions, with shipments anticipated to begin in the second half of 2025.

1. Laser drilling equipment opens new space: The MCD75T laser drilling equipment, set to launch in the second half of 2024, is based on a laser direct-write technology platform, featuring real-time position calibration, hole shape detection, and energy monitoring functions. This equipment has entered the mass production verification phase with several leading customers, with order scales expected to continue to release alongside downstream expansion demands in 2025.

New Business Layout: Multiple Developments

1. New display equipment rapidly scaling up: The company’s NEX-W model in the Mini/Micro LED field has successfully entered the supply chains of leading customers such as Visionox, Chenxian Optoelectronics, and Woge Optoelectronics. In 2025, the company successfully broke through with BOE, with screen sensor RTR equipment already delivered, and LCD process exposure coding mass production equipment about to be shipped.

1. New energy photovoltaic equipment steadily advancing: The company has reserved both direct-write and non-direct-write technical solutions in the photovoltaic field and has collaborated with several leading battery enterprises. Solar cell lithography equipment signed with overseas photovoltaic customers has been successfully shipped. If the HJT copper plating process achieves a penetration rate of 10% in 2025, the corresponding equipment market size is expected to be around 3 billion yuan, with the company likely to capture 10%-15% of the market share.

1. Mask plate manufacturing equipment continues to break through: The LDW series mask plate manufacturing equipment, meeting the 90-nanometer process node, has successfully passed client verification, with industry-leading technical parameters. As the domestic semiconductor industry develops, the demand for mask plate manufacturing equipment will continue to grow.

2.2 Business Outlook Analysis of Dongwei Technology

The business development of Dongwei Technology in the next two years will present a trend of **”steady growth in PCB electroplating equipment, explosive growth in new energy equipment, and breakthroughs in semiconductor equipment”**.

PCB Electroplating Equipment Business: Benefiting from Multiple Favorable Factors

PCB electroplating equipment remains the company’s core business, accounting for about 80% of revenue. In the next two years, it will benefit from:

1. AI servers driving high-end PCB expansion: The demand for AI computing power is driving rapid development of high-end PCBs such as HDI and IC substrates, which places higher demands on the precision and efficiency of electroplating equipment. The company’s MVCP equipment can achieve a minimum line width/spacing of 8μm, meeting the high precision requirements of MSAP processes, and has been certified by Taiwanese manufacturers.

1. Accelerated capacity transfer to Southeast Asia: 2025 is a critical time window for the concentrated production of PCB capacity in Southeast Asia, with expansion plans of domestic and Taiwanese PCB enterprises starting in the second half of 2023. The company’s orders in the first half of 2025 doubled year-on-year, with monthly shipments exceeding 20 units, supporting an annual output value of 3 billion yuan.

1. Continuous optimization of product structure: The company’s newly launched horizontal three-in-one plating equipment has significant advantages in high aspect ratio through holes and micro-blind holes, making it more suitable for high-end HDI. This product has entered the supply chain of some leading domestic customers, and high-margin products are expected to break through in volume.

According to company guidance, the revenue from Dongwei Technology’s PCB electroplating equipment business is expected to reach 720 million, 880 million, and 1.02 billion yuan from 2025 to 2027.

New Energy Equipment Business: Formation of a Second Growth Curve

The new energy equipment sector is the company’s most explosive business segment, with sales in this sector already accounting for 15% of total revenue in 2024.

1. Explosive demand for composite current collector equipment: Dongwei Technology is the only company in China to achieve mass production of PET copper-plated magnetron sputtering equipment, with three contracts totaling 1.7 billion yuan signed in August and September 2025. According to estimates, if composite current collectors capture 100% of the battery current collector market share, 20,000 sets of equipment (magnetron sputtering equipment + electroplating equipment) will be needed. The production capacity of composite current collector equipment is expected to expand from the current 10 units to 20 units per year in 2025.

1. Commercialization of photovoltaic copper plating equipment accelerating: The company’s third-generation photovoltaic VCP copper plating equipment has entered small batch production at customer sites, with a production capacity of 8,000 pieces per hour, showing significant improvements in efficiency, cost, performance, and scrap rate. If the copper plating process successfully replaces silver paste, the market space will be significantly released.

1. New space opened in the energy storage market: With the rapid development of the energy storage market, the demand for battery current collectors is also increasing. The company’s roll-type horizontal membrane electroplating equipment and magnetron sputtering winding coating equipment can be used in energy storage battery production, with relevant customer orders already received.

Semiconductor Equipment Business: Forward-looking Layout Starting to Show Results

Dongwei Technology’s layout in the semiconductor equipment field is accelerating:

1. TGV electroplating equipment achieves breakthroughs: The company has launched the industry’s first horizontal TGV electroplating line, applicable in the semiconductor packaging field, using high-quality borosilicate glass and quartz glass as substrates, achieving 3D interconnection through seed layer sputtering and electroplating filling processes, supporting high-end SIP and high-performance chip packaging.

1. Advanced packaging equipment continuously advancing: The company continues to invest in RDL (re-distribution layer) vertical electroplating equipment, which can be used in 2.5D and 3D integrated semiconductor packaging. At the 2025 iTGV exhibition, the company will showcase PVD magnetron sputtering equipment, TGV horizontal electroplating filling equipment, and RDL vertical electroplating equipment.

1. HVLP copper foil equipment seizing AI opportunities: AI PCBs require high frequency, high speed, and low loss, necessitating upgrades to HVLP (high-frequency ultra-low profile copper foil). The company’s double-sided clamping equipment can be used to produce HVLP copper foil, with customer orders already received, likely to benefit significantly from AI industry trends.

2.3 Industry Trends and Market Space

Both companies are in rapidly developing industries, providing a favorable external environment for business growth in the next two years.

PCB Equipment Market: Steady Growth

According to multiple institutions’ forecasts, the PCB equipment market will maintain steady growth:

• In 2025, the global PCB equipment market size is expected to reach 7.7 billion USD, a year-on-year increase of 8.7%

• In 2025, the size of the Chinese PCB equipment market is expected to reach 32.4 billion yuan, a year-on-year increase of 10.0%, accounting for 60.1% of the global market

• In 2025, the global PCB output value is expected to reach 79-88 billion USD, with the AI server-related PCB market size around 5.6 billion USD

Semiconductor Equipment Market: Accelerated Domestic Substitution

In the context of domestic substitution, the semiconductor equipment market has enormous space:

• IC substrate market: Yole predicts that the global advanced substrate market size will reach 31 billion USD by 2030

• Advanced packaging market: With the increasing requirements for packaging technology from AI chips, the demand for advanced technologies such as 2.5D/3D packaging and fan-out packaging is rapidly growing

• Equipment localization rate: Currently, the localization rate of domestic semiconductor equipment is still low, but with dual drives of policy support and technological breakthroughs, it is expected to see rapid improvement in the coming years

New Energy Equipment Market: Explosive Growth

The new energy equipment market is on the verge of explosive growth:

• Composite current collectors: The market size is expected to exceed 20 billion yuan in 2025, with penetration rates increasing from 20% to 40%

• Photovoltaic copper plating: If the HJT copper plating process matures, the penetration rate is conservatively estimated at 10% in 2025, with a neutral forecast of 30%, corresponding to nearly 200GW of installed capacity

• Energy storage equipment: With the rapid growth of new energy installations, the demand for energy storage markets is exploding, driving growth in related equipment demand

In summary, both companies are in high-growth industries, with broad business prospects for the next two years. Xingqi Microelectronics has a clear advantage in the lithography equipment field with higher technical barriers, while semiconductor equipment is expected to become a new growth pole; Dongwei Technology has a solid market position in the electroplating equipment field, with explosive potential in new energy equipment business.

3. Comprehensive Assessment of Stock Price Elasticity

3.1 Industry Valuation Levels and Trends

Currently, the semiconductor equipment and PCB equipment industries are undergoing a period of valuation reconstruction, with multiple factors driving the industry’s valuation center upward.

Industry Valuation Level Analysis:

From an overall valuation perspective, the semiconductor equipment industry remains relatively high. As of October 29, 2025, in the A-share semiconductor equipment sector, Northern Huachuang has a market value exceeding 300 billion yuan, Zhongwei Company nearly 190 billion yuan, and Tuo Jing Technology over 90 billion yuan. In contrast, Xingqi Microelectronics has a market value of 18.755 billion yuan, and Dongwei Technology has a market value of about 11.4 billion yuan, indicating significant growth potential.

The valuation of the PCB equipment industry shows a differentiated characteristic. According to brokerage data, the average valuation of comparable companies in 2025 is 36.41 times PE, but considering the industry’s high prosperity and domestic substitution logic, leading enterprises enjoy a certain valuation premium.

Industry Valuation Driving Factors:

1. Accelerated domestic substitution: In the current international environment, the localization of semiconductor equipment has become a national strategy, with increasing policy support. Tariff policies are accelerating the localization of analog chips, weakening the price advantages of overseas giants like TI under a 125% tax rate, driving the demand for domestic mature process expansion.

1. Strong downstream demand: The rapid development of emerging industries such as AI, new energy vehicles, and 5G is driving continuous growth in upstream equipment demand. In particular, the explosive demand for high-end PCBs and advanced packaging from AI servers presents significant opportunities for equipment companies.

1. Technological breakthroughs leading to valuation reshaping: As domestic companies achieve breakthroughs in key technology areas, market perceptions of their growth potential are changing. For example, Xingqi Microelectronics has reached an internationally advanced level in 3-4μm line width equipment, and Dongwei Technology has achieved global leadership in composite current collector equipment, supporting valuation increases.

1. Capacity expansion expectations: Both companies are actively expanding production, with Xingqi Microelectronics’ second-phase base having been put into production in September 2025, increasing capacity to 1,500 units per year; Dongwei Technology plans to invest 800 million yuan in 2025 to build a smart electroplating equipment industrial park, with an expected annual capacity of 2,000 units. Capacity expansion provides a guarantee for future performance growth.

3.2 Company Fundamentals Analysis

Fundamental Assessment of Xingqi Microelectronics:

1. Profitability continues to improve: The net profit margin for the first three quarters of 2025 is 21.29%, maintaining a high level. The gross profit margin in the third quarter is 42.15%, up 2.64 percentage points year-on-year, indicating product structure optimization and scale effects.

1. Outstanding growth potential: According to consensus forecasts from brokerages, the net profit attributable to the parent company for 2025-2027 is expected to be 275 million, 392 million, and 522 million yuan, with year-on-year growth rates of 71%, 42%, and 33%, resulting in a three-year compound growth rate of 35%, significantly higher than the industry average.

1. Full order book: In the first half of 2025, over 60% of the new orders were for high-end products. As of March 2025, production capacity was in an overloaded state, with a monthly shipment of over 100 units in March, setting a new historical high.

1. High technical barriers: The company possesses core technology in the micro-nano direct-write lithography field, with a minimum line width of 3μm, ranking at the top level globally. It continues to achieve breakthroughs in high-end fields such as IC substrates and advanced packaging, with a deep technological moat.

1. High-quality customer resources: The company has achieved full coverage of the top 100 PCB companies globally, establishing cooperative relationships with leading enterprises in the semiconductor field such as Changdian Technology and Huatian Technology, with strong customer stickiness.

Fundamental Assessment of Dongwei Technology:

1. Performance inflection point has emerged: In the third quarter of 2025, the net profit reached 42.86 million yuan, a year-on-year increase of 236.93%, indicating that performance has entered an accelerated growth phase. With the increase in the proportion of high-margin products, profitability is expected to continue to improve.

1. Good growth expectations: According to brokerage forecasts, the net profit attributable to the parent company for 2025-2027 is expected to be 147 million, 185 million, and 224 million yuan, although the absolute amount is lower than that of Xingqi Microelectronics, the growth rate is faster, especially with the new energy equipment business expected to achieve explosive growth.

1. Explosive growth in orders: In the first half of 2025, orders doubled year-on-year, with three contracts totaling 1.7 billion yuan for composite current collector equipment signed in August and September. Contract liabilities reached 560 million yuan, a 122% increase compared to the same period in 2024, indicating high certainty for future performance growth.

1. Leading market position: The company holds over 50% market share in the PCB electroplating equipment field and is the only mass production enterprise in the composite current collector equipment field, possessing pricing power in niche markets.

1. Accelerated globalization layout: The proportion of overseas revenue has increased from less than 10% to over 20%, with the Thai production base already contributing revenue, indicating initial success of the globalization strategy.

3.3 Factors Affecting Stock Price Elasticity

Catalyst Factors Analysis:

For Xingqi Microelectronics, important catalysts in the next two years include:

1. Breakthrough in semiconductor equipment orders: If IC substrate and advanced packaging equipment receive more orders from leading customers, it will greatly enhance market perceptions of the company’s growth potential

1. Volume production of laser drilling equipment: If new products like MCD75T achieve large-scale sales in 2025, it will open up new growth spaces

1. H-share listing: The company has adjusted its H-share listing plan, and if successful in listing on the Hong Kong Stock Exchange, it will enhance international visibility and valuation levels

1. Breakthrough in technology certification: Progress in equipment certification for more advanced process nodes, such as 2μm or even higher precision equipment

For Dongwei Technology, key catalysts include:

1. Large-scale delivery of composite current collector equipment: The successful delivery of the 1.7 billion yuan orders will directly drive performance growth

1. Commercialization of photovoltaic copper plating equipment: If the third-generation photovoltaic copper plating equipment achieves large-scale commercial application, it will open up a new market worth hundreds of billions

1. Breakthrough in semiconductor equipment: If new products like TGV electroplating equipment and HVLP copper foil equipment receive important customer certifications

1. Continuous breakthroughs in overseas markets: With the global transfer of PCB capacity and the globalization of the new energy market, the proportion of overseas revenue is expected to further increase

Risk Factors Assessment:

Both companies face common risks, including:

1. Downstream capital expenditure volatility risk: If the global AI investment boom cools or PCB manufacturers slow down their expansion pace, it will directly impact equipment demand

1. Technology iteration risk: The semiconductor equipment industry has rapid technology updates, requiring continuous high-intensity R&D investment to maintain technological leadership

1. Customer concentration risk: The increasing revenue share of the top five customers means that if core customers reduce capital expenditures, it will significantly impact performance

1. Changes in the international trade environment: High dependence on imported equipment components may affect supply chain stability due to trade frictions

Specific risks for Xingqi Microelectronics include:

1. New product introduction not meeting expectations: The market acceptance of new products like laser drilling and bonding equipment is uncertain

1. Inventory and accounts receivable risks: The mid-2025 report shows inventory of 794 million yuan, a year-on-year increase of 65.36%, necessitating attention to inventory turnover issues

Specific risks for Dongwei Technology include:

1. Raw material price fluctuations: Fluctuations in the prices of copper, stainless steel, and other raw materials significantly impact gross margins

1. Exchange rate risk: As the proportion of overseas business increases, exchange rate fluctuations will have a greater impact on performance

1. Technology leakage risk: If core technologies are known and imitated by competitors, it will weaken competitive advantages

3.4 Valuation Analysis and Target Price

Valuation Analysis of Xingqi Microelectronics:

The current stock price is 142.49 yuan, corresponding to a projected PE of about 52 times for 2025 (based on a net profit forecast of 333 million yuan). Considering the company’s high growth potential and technical barriers, a certain valuation premium is reasonable.

Brokerage target price range:

• Huazheng Securities: Maintain a “Buy” rating, based on a 45 times PE for 2025, target price of 118.35 yuan

• Dongbei Securities: Maintain an “Overweight” rating, target price of 116.55 yuan

• Some brokerages based on a 30-40 times PE for 2025, target price range of 144-192 yuan

From a valuation perspective, if a 45-55 times PE is granted for 2025 (considering high growth and industry characteristics), the reasonable market value range would be 13.5-16.5 billion yuan, corresponding to a stock price of 102-125 yuan. However, considering the company’s breakthroughs in semiconductor equipment and high growth potential, the market may assign a higher valuation.

Valuation Analysis of Dongwei Technology:

The current stock price is 37.46 yuan, corresponding to a projected PE of about 78 times for 2025 (based on a net profit forecast of 147 million yuan). The valuation is relatively high, but considering the emergence of performance inflection points and the explosive potential of the new energy business, there is still room for growth.

Brokerage target price range:

• China International Capital Corporation: Gives a “Outperform Industry” rating, target price of 51 yuan, implying a 32 times 2026 PE

• Dongwu Securities: Maintain an “Overweight” rating, target price of 38.02 yuan

• China Merchants Securities: Maintain an “Overweight” rating, based on an 80 times PE for 2025, target price of about 45 yuan

From a valuation perspective, if based on a 35 times PE for 2026 (considering accelerated performance growth), the reasonable market value would be about 6.5 billion yuan, corresponding to a stock price of about 21 yuan. However, considering the high growth potential of the new energy equipment business, a certain valuation premium is reasonable.

Comprehensive Assessment of Stock Price Elasticity:

Considering industry trends, company fundamentals, catalyst factors, and risk factors, the stock price elasticity assessment for both companies over the next two years is as follows:

Xingqi Microelectronics:

• Upside potential: Based on a 50 times PE for 2025 and a net profit of 333 million yuan, the target price is 160 yuan, representing a 12.3% increase from the current price

• If the semiconductor equipment business exceeds expectations, with a net profit of 500 million yuan in 2026, a 40 times PE could lead to a target price of 240 yuan, representing a 68.4% increase

• Stock price elasticity coefficient: 1.5-2.0 (above industry average)

Dongwei Technology:

• Upside potential: Based on a 35 times PE for 2026 and a net profit of 185 million yuan, the target price is 45 yuan, representing a 20.1% increase from the current price

• If the new energy equipment business explodes, with a net profit of 300 million yuan in 2026, a 30 times PE could lead to a target price of 73 yuan, representing a 94.9% increase

• Stock price elasticity coefficient: 2.0-2.5 (high elasticity)

Conclusion: Investment Recommendations and Outlook

Through in-depth analysis of Xingqi Microelectronics and Dongwei Technology, we can draw the following core judgments:

Xingqi Microelectronics, as a leader in domestic lithography equipment, has significant advantages in technical barriers, customer resources, and market position. In the next two years, the company will fully benefit from the explosive demand for high-end PCBs driven by AI servers and the domestic substitution wave in semiconductor equipment. The PCB equipment business will maintain steady growth, while semiconductor equipment is expected to achieve a breakthrough from 0 to 1, becoming a new growth pole. It is expected that the net profit attributable to the parent company will be 275 million, 392 million, and 522 million yuan from 2025 to 2027, with a three-year compound growth rate of 35%.

Dongwei Technology has a solid market position in the PCB electroplating equipment field, and its new energy equipment business has entered an explosive growth phase. With the delivery of 1.7 billion yuan in composite current collector equipment orders and the commercialization of photovoltaic copper plating equipment, the company’s performance is expected to achieve leapfrog growth. It is expected that the net profit attributable to the parent company will be 147 million, 185 million, and 224 million yuan from 2025 to 2027, although the absolute amount is lower than that of Xingqi Microelectronics, the growth rate is faster.

From an investment perspective, both companies possess high investment value, but their risk-return characteristics differ:

1. Xingqi Microelectronics is more suitable for conservative investors, with a deep technological moat, high certainty of performance growth, and relatively small stock price fluctuations. It is recommended to actively position when the stock price falls below 130 yuan, with a target price of 160-180 yuan.

1. Dongwei Technology is more suitable for investors with a higher risk appetite, as its new energy business has strong explosive potential and high stock price elasticity. It is recommended to pay attention to the delivery progress of composite current collector equipment orders and to intervene after performance confirmation, with a target price of 45-55 yuan.

Investors should be reminded to pay attention to risks including downstream capital expenditure volatility, technology iteration risks, customer concentration risks, and changes in the international trade environment. Particularly, both companies’ valuations are currently at relatively high levels, necessitating close monitoring of performance realization.

Looking ahead, driven by the triple waves of the AI revolution, new energy revolution, and domestic substitution, the Chinese semiconductor equipment and PCB equipment industries are ushering in historic development opportunities. As leading enterprises in their respective fields, Xingqi Microelectronics and Dongwei Technology are expected to occupy advantageous positions in this industrial transformation, creating substantial returns for investors. It is recommended that investors choose suitable targets for layout based on their risk preferences and investment goals, while maintaining a long-term investment perspective.