A-share Subscription | Hongfucheng (301716.SZ) Opens for Subscription, Focused on Industrialization of Advanced Electronic Functional Materials and Devices

On September 16, Hongfucheng (301716.SZ) opened for subscription, with an issue price of 76.86 yuan per share, a subscription of 3,500 shares, and a price-to-earnings ratio of 21.80 times. It is listed on the Shenzhen Stock Exchange, with Huayuan Securities as its sponsor. According to the prospectus, the company is a national-level specialized and sophisticated key "little giant" enterprise focusing on the research, 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 materials, and wave-absorbing materials. Thermal interface materials are typically filled between heat-generating components such as chips and heat sinks to improve thermal conductivity. Electromagnetic shielding and wave-absorbing materials both belong to the field of electromagnetic compatibility materials, mainly shielding and absorbing electromagnetic waves through reflection, absorption, or loss, thereby reducing electromagnetic interference. These materials are key materials for ensuring the reliability and stable operation of various electronic information products, and are widely used in fields such as data centers (AI high-power chips, optical modules), smart vehicles, 5G communications, and consumer electronics. The company adopts independently innovated orientation technology to achieve vertical alignment of graphene materials, fully tapping into graphene's excellent vertical thermal conductivity, achieving extremely low thermal resistance and excellent compressive resilience, and effectively solving key issues such as warpage deformation of high-power, large-size chips. With this technology, the company has become one of the very few enterprises in the thermal management materials industry capable of mass-producing graphene thermal pads and achieving large-scale application. In 2024, the company also successfully developed a metal-carbon-based composite material for AI high-power chip testing. This product combines low thermal resistance, excellent mechanical resilience, and interface stability, and can be used for repeated testing, effectively solving the industry pain point of traditional thermal interface materials"low thermal resistance makes reuse difficult, while reusability comes with high thermal resistance"providing a good solution for high-power chip testing. The company's independently developed graphene thermal pads and metal-carbon-based composite materials have entered the thermal interface material supply chains of major global AI chip companies and are being supplied in batches. Downstream customers include large technology companies such as Company B, Company C, Wistron, and Hon Hai Precision. In addition, the company's TIM1 thermal interface materials have been recognized by customers and have begun small-batch supply. With the rapid development of downstream application markets for high-power computing chips such as AI computing centers, AI phones, and autonomous driving, these fields have increasingly high performance requirements for thermal management materials. Advanced thermal management materials have become key electronic materials, and the company's products in this category have broad future market prospects. In the field of electromagnetic shielding materials, the company has been deeply engaged for many years, committed to continuously improving production process technology and enhancing product performance and precision. It has now mastered the core technologies required for the production of electromagnetic shielding materials and formed a comprehensive product system, including some shielding materials with relatively high process difficulty, such as SMT conductive foam, which combines high-temperature resistance, high resilience, and automatic soldering, and is used in the automotive electronics industry; semi-wrapped conductive foam and conductive bristle products, with low stress and high resilience, solve the problems of conductive interference under screens in current electronic products and water ripple issues that may arise in applications, with product performance at a leading domestic level. The 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 flake orientation process technology, the company can mass-produce wave-absorbing materials with a wide range of magnetic permeability (at 1 MHz, magnetic permeability values cover 50 to 300), thereby achieving the goal of "broadband and environmentally friendly" wave-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 vehicles, 5G/6G communications, and consumer electronics, especially the rapid development of downstream application markets for high-power computing chips such as AI computing centers, AI phones, and autonomous driving, electronic products are gradually increasing in functionality, their internal structures are becoming more complex, internal power density is increasing, and product structural layouts will become more compact. This 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 company's products have broad future market prospects. In terms of financials, for the 2023, 2024, and 2025 fiscal years, the company achieved operating revenue of approximately 260 million yuan, 330 million yuan, and 707 million yuan, respectively; during the same periods, net profit was approximately 34.7617 million yuan, 71.5051 million yuan, and 270 million yuan, respectively.