Sinoceramics: AI computing demand drives surge in orders for optical module ceramic packages

A total of 1,169 A-share listed companies received institutional investor research visits this week (September 14–18).

Market Performance Highlights

In terms of profitability, nearly 60% of the institutions' researched companies posted positive returns this week. Among them:

• First daily limit-up: CETC Siyi, Gaoling Information, Zhongqi New Materials, Xiangxin Technology, and Daosheng Tianhe
• Two consecutive daily limit-ups: Xinhongze, Huafang Shares, and Longtou Shares
• Notable gainers: Star Micro (+43.3%), CETC Siyi (+42.9%), Wanbang Pharmaceutical, BGI Genomics, and Hengyunchang (each surged more than 30%)
• Gains exceeding 20%: 20 companies, including \*ST Hexin, Jindan Technology, and Huabao Shares

Popular Research Targets

Sinocera Electronics (003031), Chengtian Weiye, Sinopharm Accord, Zhongjuxin-U, and Chongda Technology attracted concentrated institutional research attention. Notably, most of the top-ranked companies by number of institutional research visits were in the semiconductor sector. The secondary market performance of the semiconductor industry chain was impressive this week, with the Wind Semiconductor Concept Index rising 10.64% overall.

Sinocera Electronics: Sharp Increase in Ceramic Housing Orders

Sinocera Electronics held an on-site research meeting this week, attended by 71 institutional investors. The company's core business focuses on electronic ceramic packaging and semiconductor modules. Institutions paid particular attention to the drivers behind growth in its electronic ceramic materials and components business, as well as its plans for the third-generation semiconductor segment.

Key Developments

• AI-driven demand: The new global wave of AI technology has led to a surge in computing power demand, directly driving data center construction and upgrades, thereby generating explosive demand for optical modules.
• Ceramic housing and substrates: As key materials for optical module packaging, market demand has grown rapidly. In particular, aluminum nitride thin-film substrates—critical packaging materials for low-cost non-hermetic sealing solutions—are facing supply shortages.
• Full industrial chain: Through asset restructuring, Sinocera Electronics has established a full industrial chain layout covering "electronic ceramics + third-generation semiconductors," encompassing all stages from materials, chips, packaging and testing, to modules, resulting in significant synergies.
• Xiongan Taixin acquisition: The company acquired 100% equity in Xiongan Taixin. Its high-frequency chip business can significantly expand the operating frequency range and application fields of the company's current RF chips, broadening its RF product line.

Terahertz Chip Business

Sinocera Electronics stated that the core products of its subsidiary, Xiongan Taixin—terahertz chips—are primarily used in scenarios such as instrument testing and measurement, high-speed communications, and human body security screening. Commercialization and order status are favorable, with strong performance against first-half targets:

• Revenue: RMB 66.6076 million
• Net profit: RMB 18.1775 million

Third-Generation Semiconductor Strategy

Regarding the medium- to long-term strategic plan for its subsidiary Guolian Wanzhong in the third-generation semiconductor segment, Sinocera Electronics noted:

• Silicon carbide (SiC): Deeply cultivating markets in new energy vehicles, photovoltaic energy storage, industrial applications, and power grids
• Gallium nitride (GaN) RF: Expanding into satellite internet, low-altitude security, and anti-drone systems
• The company is actively advancing the implementation of fundraising projects and improving capacity building for its 8-inch wafer and packaging/testing platforms

Chengtian Weiye: Actively Expanding into the Liquid Cooling Market

Chengtian Weiye hosted 52 institutions for on-site research this week. The company's main business involves the R&D, production, and sales of smart cards and semiconductor packaging materials.

Liquid Cooling Business Progress

Chengtian Weiye's liquid cooling heat dissipation business has entered the supply chain of leading US-based semiconductor companies via core customers in Taiwan, China, providing key components such as:

• Cold plates
• GPU liquid cooling modules
• Internal manifolds within racks

Consequently, progress in its liquid cooling business has drawn significant attention from institutions.

Raw Material Cost Management

With copper prices continuing to rise, institutions asked whether the company could adjust quotes for products like cold plates to cope with raw material cost increases. Chengtian Weiye responded:

• Liquid cooling products primarily use raw materials such as copper and stainless steel
• Copper costs account for a relatively small proportion of the overall product cost
• Product costs are also influenced by processing techniques, production yield rates, stainless steel processing losses, and order volumes
• For orders with already agreed prices, the company typically executes according to the contract price
• For subsequent batches, the company will renegotiate product prices with customers based on copper and other raw material prices, production yields, order scale, and customer cost-reduction requirements

Domestic Market Expansion

Chengtian Weiye stated that it is actively expanding into the liquid cooling market and engaging in business discussions with potential domestic clients, including:

• Server manufacturers
• Internet companies
• Computing infrastructure providers

Currently, the company has provided samples to several relevant domestic manufacturers, with some products undergoing customer testing and validation. As the performance and power efficiency of domestic ASIC chips continue to improve, demand for liquid cooling solutions in related servers and computing infrastructure is expected to gradually increase, offering vast market opportunities.

Capacity Planning

Regarding future capacity planning, Chengtian Weiye indicated:

• Phase I: Liquid cooling product production base has been put into R&D and production, with a designed monthly capacity of approximately 20,000 sets for liquid cooling modules
• Phase II: Accelerating expansion construction. After completion:
• Cold plate modules: Designed monthly capacity expected to increase to approximately 40,000 sets
• InnerManifolds: Designed monthly capacity projected to reach nearly 10,000 units

Chongda Technology: Capacity Utilization Rate Around 90%

Chongda Technology received research visits from 41 institutions this week. The company's main business is the production of printed circuit boards (PCBs). Institutions focused their inquiries on capacity utilization rates, overseas computing power customers, and progress at its subsidiary specializing in advanced packaging substrates.

Capacity Utilization

During the research visit, Chongda Technology introduced that its overall capacity utilization rate is currently around 90%. The company is making every effort to accelerate the ramp-up of high-layer-count PCB production capacity at:

• Zhuhai Plant No. 1: Primarily targeting automotive, security, and optoelectronic products
• Zhuhai Plant No. 2: Focused on servers and telecommunications
• Zhuhai Plant No. 3: Infrastructure construction completed; production operations will commence at an appropriate time
• Thailand production base: Construction is being accelerated

Overseas Business Progress

Regarding progress in overseas business, Chongda Technology responded that onboarding overseas computing power customers is one of its core strategies. Customer certifications and project engagements are proceeding according to plan, with current progress meeting expectations. The company will continue to focus on acquiring high-end customers to drive incremental contributions from this business segment.

Subsidiary Performance: Proway

Chongda Technology's subsidiary, Proway, specializes in packaging substrates, focusing on the R&D, production, and sales of BT-type packaging substrates. In the first half of 2026, Proway achieved:

• Revenue: RMB 448 million (year-on-year increase of 71.41%)
• Net profit attributable to parent company shareholders: RMB 76.0209 million (year-on-year surge of 198.68%)