Shanghai Zhengfan Tech plans to buy 62.23% of Liaoning Hanjing Semiconductor for 1.12 billion yuan, boosting its core semiconductor materials presence. The deal reflects chain ambitions but raises funding worries.
Hanjing (valued at 1.8 billion yuan) produces key consumables (quartz tubes, SiC boats) for clients like Tokyo Electron and TSMC. Despite 2023-2024 revenue/profit drops, sellers guarantee 2025-2027 cumulative net profit ≥393 million yuan; 21.4x 2024 earnings is reasonable.
Aligned with Zhengfan’s expansion (semiconductor revenue 50.8% of 2024 total), Hanjing’s high-precision quartz breakthroughs enhance localization, with consumables offering recurring income for OPEX growth.
But risks loom: Zhengfan’s debt ratio hit 63.94% (2025 Q1) from 39.68% (2020); interest-bearing debt matches the acquisition cost. Cash flow strained (-98.74 million yuan Q1), with warnings of higher debt post-deal.
Market is split—cautious investors weigh growth potential against financial risks and deal uncertainties (not finalized).
ICgoodFind: Zhengfan’s Hanjing deal blends opportunities and challenges, with integration and industry trends as key factors.
