JW Insights: the STAR Market of the Shanghai Stock Exchange celebrates its third anniversary today with 67 Chinese semiconductor companies listed so far

By Li Panpan

Most of 67 Chinese semiconductor companies listed on the STAR Market of the Shanghai Stock Exchange grow steadily, while some are mired in losses, or experiencing revenue growth rather than net profit growth as the Nasdaq-style board celebrates its third anniversary today, said a recent JW Insight report. 

The STAR Market debuted on July 22, 2019. So far there are 67 Chinese semiconductor companies listed on it, accounting for 15.51% of all the listed companies; There are still 50 companies in preparation for IPO. JW Insights researched the revenue and net profit of the 67 companies to find out more about those companies over the three years. 

1. Changes in revenue

13 semiconductor companies were successfully listed in 2019, and they have achieved steady growth in revenue over the past three years.

In 2019, Raytron Technology(睿创微纳) and Espressif Technology(乐鑫科技) were the best performers with 78.25% and 59.49% revenue growth specifically while Montage Technology(澜起科技) and Amlogic(晶晨股份) experienced a decline and Huate Gas(华特气体) and KingSemi (芯源微) had single-digit growth. 

The 2020 annual report shows that only Giantec Semiconductor (聚辰股份) experienced a decline in revenue, while the remaining 12 companies achieved growth, with Raytron Technology had its revenue doubled year-on-year.

In 2021, the semiconductor industry ushered in a historically rare peak with the revenue of industry chain companies having increased significantly. KingSemi and Bright Power Semiconductor (晶丰明源) doubled their revenue while Espressif Technology, Anji Micro(安集科技), Amlogic and Novoray(联瑞新材) achieved a revenue increase of more than 50%.

18 Chinese semiconductor companies were listed on the STAR Market in 2020. In that year, Leaguer MicroElectronics(力合微) and GenTech(正帆科技) experienced revenue delinced while Acco Test(华峰测控), 3 Peak IC(思瑞浦) and Bestechnic(恒玄科技) achieved more than 50% of revenue growth and ThinkonSemi(神工股份), Jinhong Gas(金宏气体), Cambricon(寒武纪), and Leadyo (利扬芯片) had single-digit growth. 

Those 18 companies had different levels of revenue increase in 2021, with only MEMsensing(敏芯股份) having single-digit growth and Acco Test, 3 Peak IC, ThinkonSemi and Chinaasic(明微电子) doubled their revenue growth. 

The 17 companies listed in 2021 had great growth. Many of them achieved a revenue increase of more than 50% in the year of listing with Anlogic(安路科技) maintained more than doubled growth for three consecutive years. However, Canqin Technology(灿勤科技)’s revenue has declined for two consecutive years, and dropped by more than 60% in 2021. At the same time, GalaxyCore(格科微)’s revenue has also slowed down significantly, with a growth of only 8.44% that year.

19 companies have been successfully listed in the STAR Market in the first half of 2022. The revenue growth of them in 2021 is dazzling, with Triductor Technology(创耀科技) and NOVOSENSE Microelectronics(纳芯微) increased by more than 200%, Halo Micro(希荻微), Oriental Semiconductor(东微半导), Injoinic Technology(英集芯), Kiwi Instruments(必易微), Hwatsing(华海清科) increased by about 100%. Others like ASR Microelectronics(翱捷科技), Vanchip Technology(唯捷创芯), Everbright Photonics(长光华芯), CellWise Microelectronics(赛微微电) increased by more than 50%. Only Loongson Technology(龙芯中科) had a growth of 10.99%. 

All the Chinese semiconductor companies listed on the STAR market showed a trend of revenue growth in 2021, compared to the time when they were listed, although some declined in the middle or were with small growth rate. 

2. Changes in net profit

Although with growing revenue, the net profit of many listed semiconductor companies has declined compared with the time of listing.

Among the 13 semiconductor companies listed in 2019, AMEC(中微公司)’s net profit doubled while that of HYC Technology(华兴源创) and Amlogic dropped dramatically in 2019. 

In 2020, the net profit of Raychon Technology, AMEC, Anji Micro doubled their net profit, HYC Technology, KingSemi and Giantec Semiconductor increased their net profit by more than 50%, while those of Espressif Technology, Amlogic and Bright Power Semiconductor fell sharply year-on-year. 

In 2021, the gap of revenue among these companies became serious. The net profit of Bright Power Semiconductor and Amlogic skyrocketed by more than 9 times and 6 times specifically, while those of Anji Micro, Montage Technology, Raychon Technology, Qingyi Photomask(清溢光电), Giantec Semicondcutor dropped sharply. Qingyi Photomask even profited less than 2019 when it was listed, while Giantec Semiconductor’s net profit was almost equal to 2019 in 2021. 

18 companies listed in 2020 were having differentiated net profits in 2020. Shijia Photons(仕佳光子)’ net profit base was small, so it increased by more than 5 times, while Cambricon and VeriSilicon(芯原股份) continued to have narrowed losses. 

In 2021, the net profit of those 18 companies were positive except for Cambricon(寒武纪), which continued to lose money.

Most of the 17 companies listed in 2021 had performed well in net profits with Dosillicon(东芯股份) increasing by 19 times, except for Anlogic Technology which broke even and Primarius Technologies(概伦电子), Caiqin Technology still on decline in net profits.

Among the 19 companies listed in 2022, Kiwi Instruments and Dosillicon saw their net profits up by five and four times, respectively in 2021, while ASR Microelectronics, Vanchip Technology, Piotech(拓荆科技), and Cloudwalk Technology(云从科技) failed to achieve profits before listing. Only Piotech broke even in 2021 while other three are still  in losses. 

Giantec Semiconductor’s (聚辰股份) revenue and net profit were almost the same as before listing, but its stock price has risen by more than 50% this year, far exceeding others in the same period and becoming one of the best among all STAR Market stocks.

Most Chinese semiconductor companies listed on the STAR Market can benefit from it to achieve a double increase in revenue and net profit, while some perform poorly. With the improvement of the registration system of STAR Market, more companies are expected to go listed on it and leverage the secondary markets to boost their growth, the JW Insights concluded.