A-share subscription | Hong Fu Cheng (301716.SZ) opens subscription to focus on industrialization of advanced electronic functional materials and devices

The Zhitong Finance App learned that on September 16, Hong Fu Cheng (301716.SZ) began the subscription. The issue price was 76.86 yuan/share, and the subscription limit was 0.35 million shares, with a price-earnings ratio of 21.80 times. It belongs to the Shenzhen Stock Exchange, and Huayuan Securities is its sponsor.

According to the prospectus, the company is a “little giant” enterprise focusing on research and development and industrialization of advanced electronic functional materials and devices such as thermal management, electromagnetic shielding, and wave absorption. Its products mainly include thermal interface materials, electromagnetic shielding and wave absorption materials.

Thermal conductive interface materials are usually filled between heating components such as chips and radiators to improve thermal conductivity; electromagnetic shielding and wave absorbing materials are materials in the field of electromagnetic compatibility. They mainly shield and absorb electromagnetic waves through reflection, absorption, or loss, and play a role in reducing electromagnetic interference. These materials are key materials to ensure the reliability and stable operation of various electronic information products, and are widely used in data centers (AI high-power chips, optical modules), smart cars, 5G communications, and consumer electronics.

The company uses independent and innovative orientation technology to achieve vertical arrangement of graphene materials, fully exploiting the excellent thermal conductivity of graphene in the vertical direction, achieving extremely low thermal resistance and excellent compression resilience, which can effectively solve key problems such as warping and deformation of high-power and large-size chips. With this technology, the company has become one of the few companies in the thermal management materials industry that can mass-produce graphene thermal conductive gaskets and achieve large-scale application. In 2024, the company also successfully developed metal-carbon-based composites used in AI high-power chip testing. This product has both low thermal resistance, excellent mechanical resilience and interface stability, and can be used for repeated testing. It effectively solves the industry pain point of “low thermal resistance and difficult to reuse, can be reused but high thermal resistance”, and provides a good solution for high-power chip testing.

Graphene thermal conductive gaskets and metal-carbon-based composites independently developed by the company have entered the thermal interface material supply chain of major AI chip companies around the world and are supplied in batches. Downstream customers include large technology companies such as Company B, Company C, Weichuang Capital, and Hon Hai Precision. Furthermore, the company's TIM1 thermal interface material was approved by customers and began to be supplied in small quantities. With the rapid development of downstream application markets for high-power computing chips such as AI computing power centers, AI mobile phones, and autonomous vehicles, the performance requirements for thermal management materials in these fields are getting higher and higher. Advanced thermal management materials have become key electronic materials, and the company's future market prospects for such products are broad.

In the field of electromagnetic shielding materials, the company has been deeply involved for many years, and is committed to continuously improving production process technology and improving product efficiency and precision. It has now mastered the core technology required for the production of electromagnetic shielding materials, and has formed a complete product system, including some difficult shielding materials, such as SMT conductive foam, which also has characteristics such as high temperature resistance, high resilience and automatic welding, and is used in the automotive electronics industry; half-wrapped conductive foam, conductive wool products, low stress and high resilience, have solved the current problem of conductive interference and water waves under electronic product screens. Performance is domestic Leading level, products are used in terminal products of major consumer electronics brands.

In terms of wave absorbing materials, based on water-based functional coating preparation technology and sheet orientation process technology, the company can mass-produce absorbent materials with a wide range of magnetic conductivity (magnetic permeability values cover 50 to 300 at 1 MHz frequency), thereby achieving the goal of “broadband and environmental friendliness” of absorbing materials. The products are used in terminal products of major consumer electronics brands.

With the rapid development of high-end electronic information industries such as artificial intelligence, smart cars, 5G/6G communications, and consumer electronics, especially the rapid development of downstream application markets for high-power computing chips such as AI computing power centers, AI phones, and autonomous vehicle driving, electronic product functions are gradually increasing, internal power density of products is increasing, and the product structure layout will be tighter, which places higher demands on materials related to thermal management and electromagnetic compatibility. Materials related to thermal management and electromagnetic compatibility have become key electronic materials, and the future market prospects for the company's products are broad.

On the financial side, in 2023, 2024, and 2025, the company achieved operating income of approximately RMB 260 million, RMB 330 million, and RMB 707 million respectively; during the same period, net profit was approximately RMB 347.617 million, RMB 71.551 million, and RMB 270 million, respectively.