Report date: 2026-09-13 | Price data: 2026-09-11 market close (Friday); written after market close on 2026-09-11 / 9-12 | Sources: 30 | Report engine: v1 (v2 available)

Report engine upgraded to v2 (2026-09-24)

This report was generated by engine v1. v2: Rebuilt like a professional research note: a conclusion-first summary with where the evidence differs from market expectations, a dated catalyst calendar, a watch list you can track, and a one-week price range based on historical volatility, all in a tighter write-up. What's new

View PDF Download Word Download Markdown

Price history

Loading price history...

Latest market data

Close	56.9 (-5.73% on the day; -10.42% over 5 sessions; -7.3% over 20 sessions)
Market cap	CNY 90.69 billion
P/E (TTM)	35.93x (23th percentile over 5.2 years)
P/B (MRQ)	5.38x (93th percentile over 5.2 years)
P/S (TTM)	2.93x (93th percentile over 5.2 years)
52-week range	33.28 (2025-09-23) – 84.7 (2026-07-15)
Moving averages	MA5 60 / MA10 60.36 / MA20 59.3 / MA60 63.57
MACD (12,26,9)	DIF -0.652, DEA -0.739, histogram 0.174
RSI	RSI6 34 / RSI14 42
Bollinger bands (20,2)	Upper 63.13 / middle 59.3 / lower 55.46
Volume	1.13x the 20-day average
One-week range (about 68% coverage)	53.21 – 63.26 (-6.5% ~ +11.2%)
One-week range (about 95% coverage)	49.56 – 73.07 (-12.9% ~ +28.4%)

As of the 2026-09-30 close; calculated from daily price data (adjusted prices) and refreshed automatically each trading day. The one-week range reflects historical volatility only and is not a forecast. The report below was written on 2026-09-13; its prices and short-term scenarios reflect data at that time.

TongFu Microelectronics Co., Ltd. (TongFu Microelectronics) (002156)

Individual Stock Analysis Report | Industry: Semiconductor Packaging & Testing (OSAT) | Report Date: September 13, 2026 | 2026-09-11 Close (Friday); Written After Market Close on 2026-09-11 / 9-12

This report is automatically compiled and generated by AI based on publicly available information, for reference only and does not constitute investment advice.

1. Executive Summary

TongFu Microelectronics achieved operating revenue of RMB 16.041 billion in H1 2026, up 23.03% year-on-year; net profit attributable to parent was RMB 1.717 billion, up 316.77% year-on-year, but non-GAAP net profit attributable to parent was only RMB 747 million, up 77.78% year-on-year. The difference between the attributable and non-GAAP figures was approximately RMB 970 million, indicating that the high earnings growth included substantial non-recurring gains and losses, and the attributable growth rate cannot simply be regarded as the growth rate of core operating profitability. The Company's Q2 single-quarter revenue was RMB 8.559 billion, with net profit attributable to parent of RMB 1.388 billion. Both revenue and profit improved significantly compared to Q1. Packaging & testing gross margin was 15.12%, up 0.73 percentage points year-on-year.

The Company operates in the semiconductor packaging & testing (OSAT) segment, with approximately 8.01% global market share in 2024, ranking fourth globally and second in mainland China. AI computing power, storage, automotive and domestic customer demand, as well as the increased proportion of mid-to-high-end products and improved capacity utilization, are the main drivers of current earnings growth. In 2026, the Company completed a RMB 4.220 billion private placement, with net proceeds of RMB 4.209 billion, of which RMB 3.170 billion was allocated to four major capacity projects: storage chips, automotive and other emerging applications, wafer-level packaging & testing, and high-performance computing and communications. This demonstrates the Company's continued focus on its core packaging & testing business and expansion of mid-to-high-end capacity.

The Company has formed a deep joint venture and cooperative relationship with AMD. AMD-related revenue accounted for approximately 52.29% in 2025, and the top five customers accounted for approximately 69.54% of revenue. The sensitivity analysis disclosed by the Company shows that the impact of an AMD order decline on gross profit is significantly greater than its impact on revenue. Therefore, the high-end orders and customer stickiness brought by AMD constitute a growth advantage, while also making customer concentration and single-customer order volatility core operating variables.

As of the close on September 11, 2026, the Company's stock price was RMB 58.00, with total market capitalization of approximately RMB 88.0 billion and TTM P/E of approximately 34.87x. The stock price was below MA5, MA10 and MA20, with short-term moving averages in a bearish alignment, and MACD below the zero line, indicating that the technical picture remains weak. The current stock price has retraced approximately 31.5% from the 52-week high of RMB 84.70. The market still has significant divergence in interpreting earnings delivery, private placement capacity expansion and valuation methodology.

2. Company Overview

2.1 Basic Information

Item	Content
Stock Code	002156.SZ
Stock Abbreviation	TongFu Microelectronics
Company Full Name	TongFu Microelectronics Co., Ltd.
Former Name	Nantong Fujitsu Microelectronics Co., Ltd. (renamed in December 2016)
Listing Date	2007-08-16
Establishment Date	1994-02-04
Registered/Office Address	No. 288 Chongchuan Road, Nantong City, Jiangsu Province
Legal Representative/General Manager	Shi Lei
Board Secretary	Jiang Shu
Total Share Capital/Registered Capital	Total share capital 1.518 billion shares, tradable shares 1.517 billion shares; registered capital has a RMB 1.518 billion denomination (Huaxi F10)
Employee Scale	2025 semi-annual report states "over 20,000 employees globally"; Zonebourse lists 19,975; moomoo shows 8,121, conflicting with the above, judged as outdated or incorrect methodology, not adopted
Production Base Layout	Nine major production bases in Nantong, Hefei, Xiamen, Suzhou, and Penang, Malaysia (2025 semi-annual report summary); Huaxi F10's old statement of "seven major production bases" reflects an updated methodology difference, subject to annual report
Key Bases	Chongchuan Plant, Nantong TongFu, Hefei TongFu, TongFu TongKe, TongFu Chaowei Suzhou, TongFu Chaowei Penang
2026 H1 Capacity Renovation	Renovation projects at various bases progressing, with cumulative completed renovation area of approximately 39,000 sqm and projects under construction of approximately 140,000 sqm (Securities Star 2026-09-12 report on interactive platform content, single source, citing the Company's interactive reply verbatim)
Major M&A	Acquisition of 85% equity in each of AMD Suzhou and Penang packaging & testing plants (AMD retains 15%); completion timing has methodology differences — the Company's private placement listing sponsorship statement states completion in 2016, while media reports state 2017; recommend verifying against annual report/prospectus original text; completed acquisition of 26% equity in Jinglong Technology on 2025-02-13
2026 Private Placement	Completed RMB 4.220 billion targeted issuance, issue price RMB 55.38/share, net amount RMB 4.209 billion, 18 institutions allocated; invested in four major capacity projects: storage chip packaging & testing, automotive and other emerging application packaging & testing, wafer-level packaging & testing, and high-performance computing and communications packaging & testing, plus working capital/debt repayment
Data Cut-off Note	The latest disclosure retrieved is the 2026 semi-annual report (disclosed 2026-08-29) and public reports from early September 2026; the page rendering date indicates the current time point is approximately September 2026

2.2 Main Business and Product Layout

Integrated circuit packaging & testing (OSAT) service provider, offering "one-stop" services from design simulation to packaging & testing for global customers, positioned in the midstream packaging & testing segment of the semiconductor industry chain; the Company explicitly states it "has no intention of developing into an integrated company," focusing on its core packaging & testing business
Coverage areas: artificial intelligence, high-performance computing, big data storage, display drivers, 5G and other network communications, information terminals, consumer terminals, IoT, automotive electronics, industrial control (2025 semi-annual report summary verbatim)
Product/service scope: wafer probing, strip testing, final testing, system-level testing; test platforms and engineering services for analog & mixed signal, automotive, RF, high-performance computing, baseband, storage, LCD driver, SiP, power modules, etc.; ASICs applied to CPU, GPU, game consoles, high-performance network products
Customer base: Customers cover international giants and segment leaders; "most of the world's top 20 semiconductor companies and the vast majority of well-known domestic IC design companies have become the Company's customers" (East Money F9 core themes)

2.3 Industry Chain Position and Cost-Profit Structure

TongFu Microelectronics is positioned in the midstream packaging & testing (OSAT) segment of the semiconductor industry chain. Upstream comprises packaging & testing materials (lead frames, substrates, bonding wires, molding compounds, etc.) and equipment suppliers, while downstream comprises chip design companies (Fabless/IDM) and other customers. The Company is deeply bound to AMD through a "joint venture + cooperation" model, with relatively high customer concentration, typical of heavy-asset processing/foundry characteristics, with gross margin long maintained in the 12%–17% range.

Main raw materials (Company disclosure basis, consistent across multiple announcements): lead frames, substrates, bonding wires, molding compounds (some announcements add "die attach adhesive"), see 2026 semi-annual report "risk of major raw material supply and price changes," private placement prospectus, listing sponsorship statement.
Overseas procurement proportion (cross-verified): Overseas procurement amounts for each reporting period were RMB 9,947,276,400, RMB 10,445,718,000, RMB 9,816,410,500, accounting for 49.26%, 49.46%, 37.40% of total procurement (TongFu Microelectronics private placement inquiry response/sponsorship statement, 2026); the overseas procurement proportion dropped significantly to 37.40% in 2025, which can be viewed as a signal of domestic substitution progress, but the comparative base needs to be verified against the annual report original text.
High-end raw materials dependent on imports: Main raw materials for high-end packaging & testing products are primarily imported; some important core equipment has few qualified domestic suppliers and requires imports (Company risk disclosure verbatim).
Bargaining power assessment: Upstream comprises lead frame/substrate/bonding wire manufacturers with large cost proportions, and the Company's bargaining power over upstream is relatively weak; a third-party self-media article claims that material price increases in 2024 slightly eroded gross margin (Toutiao "Episode 124 | Deconstructing Listed Companies: TongFu Microelectronics," single self-media source, qualitative judgment only, for reference only, no official quantitative data found).
Supplier concentration and raw material cost proportion: The Company has not disclosed specific top five supplier concentration or latest raw material cost proportion figures in the retrieved announcements; the prospectus (2006) previously disclosed lead frames 22.88%, gold wire 18.51%, molding compounds 16.69% (FY2006), which is old data and cannot be used for current analysis.
Largest customer: AMD (Advanced Micro Devices). The Company is deeply bound through a "joint venture + cooperation" model and is AMD's most important packaging & testing supplier, "accounting for more than 80% of its related products" (2025/2026 semi-annual report statement, cited by Economic Information Daily).
Customer concentration (multi-source cross-verified, 2023/2024/2025 three years): Top five customer revenue proportion = 72.62%, 69.00%, 69.54%; sales to AMD = RMB 13.224 billion, RMB 12.025 billion, RMB 14.600 billion; AMD revenue proportion = 59.38%, 50.53%, 52.29% (Source: TongFu Microelectronics 2026 private placement listing sponsorship statement, inquiry letter response, lawyer's supplementary legal opinion, East Money announcement database and Sohu/Sina Finance reprints consistent).
Methodology note: The accountant's reply opinion (2026-06-01) provides another set of four-period data: 68.90%, 72.62%, 69.00%, 69.73%. The latest year's 69.73% differs slightly from the sponsorship statement's 69.54%, suspected to be different reporting period methodology (e.g., including 2026H1 or including 2022), recommend using the latest three-year annual report original text as the basis.
Sensitivity analysis (Company self-assessment, important): If AMD orders decline 5%, revenue declines 2.52%–2.97%, gross profit declines 5.02%–6.93%; if decline 10%, revenue declines 5.04%–5.94%, gross profit declines 10.04%–13.85%; gross profit elasticity to AMD orders is significantly greater than revenue elasticity, indicating that AMD orders are the primary carrier of high-margin/mid-to-high-end capacity.
Other customers (lower source tier, needs verification): Some media reports state the customer matrix also covers MediaTek, Texas Instruments, BYD (Sohu "Nantong's Only Hundred-Billion Packaging & Testing Leader" article, single source, not directly verified in annual reports, marked as pending confirmation).
Structural bargaining dynamics: The packaging & testing segment has characteristics of "customization, top-tier manufacturers tending to choose a small number of suppliers for long-term cooperation, strong customer stickiness," thus presenting a pattern of "deep binding with major customers, high concentration but strong stickiness"; meanwhile, the Company also faces the disclosed risk of "relatively high customer concentration."
This retrieval was unable to obtain the Company's latest accounts receivable turnover days, prepayment/accounts payable details; this subsection has insufficient evidence. Known financial side indirect data: 2026H1 net cash flow from operating activities RMB 2.933 billion, net investing outflow RMB 5.118 billion (Huaxi F10), indicating high capital expenditure (capacity expansion) intensity. Recommend supplementing accounts receivable/revenue ratio, accounts receivable turnover days, accounts payable payment terms to assess the Company's actual fund occupation position relative to upstream (materials/equipment suppliers) and downstream (AMD); currently no quantitative conclusion can be provided.
Top five customer revenue proportion: 2023: 72.62%, 2024: 69.00%, 2025: 69.54%; AMD revenue proportion: 2023: 59.38%, 2024: 50.53%, 2025: 52.29% (Source: TongFu Microelectronics 2026 private placement listing sponsorship statement, inquiry letter response, lawyer's supplementary legal opinion, multi-source reprints consistent). Limitation note: The 2025 figure also has an accountant's reply opinion methodology of 69.73% (2026-06-01), which differs slightly from the sponsorship statement's 69.54%, suspected to be different reporting period methodology; this data source is private placement-specific documents rather than the latest annual report summary, subject to the latest annual report original text.

Gross Margin

Year	Gross Margin	Net Margin	Brief Description
2020	15.47%	Data missing (net margin for this year not obtained in this retrieval)	Consumer electronics boom, relatively high capacity utilization
2021	17.16%	Data missing (net margin for this year not obtained in this retrieval)	Semiconductor super cycle, packaging & testing price increases + high-end proportion increase, recent high point
2022	13.90%	Data missing (net margin for this year not obtained in this retrieval)	Industry entered inventory destocking downturn, consumer electronics demand weakened, prices under pressure
2023	11.67%	Data missing (net margin for this year not obtained in this retrieval)	Industry cycle bottom (Company states "2023 performance fluctuations consistent with industry cycle"), both capacity utilization and prices low
2024	14.84%	Data missing (net margin for this year not obtained in this retrieval)	AI computing demand drove mid-to-high-end product proportion increase, cycle recovery, significant year-on-year rebound
2025	14.59%	Data missing (net margin for this year not obtained in this retrieval)	Mid-to-high-end products ramped up but traditional consumer products still account for a certain proportion, full-year gross margin slightly declined year-on-year; 2025's 14.58%/14.59% decimal difference due to rounding

TongFu Microelectronics is positioned in the midstream packaging & testing (OSAT) segment of the semiconductor industry chain — a typical "smile curve" middle processing/foundry position, with gross margin long in the 12%–17% range, significantly lower than upstream chip design/IP and downstream brand segments, characterized by "large revenue volume, thin net margin" heavy-asset manufacturing attributes. The core drivers for further profitability improvement are: (1) increased proportion of mid-to-high-end/advanced packaging (Chiplet, 2.5D/EFB, Bumping, WLCSP, high-stack storage, wafer-level packaging) driving unit price and gross margin structure improvement; (2) binding with AMD to undertake AI computing/server CPU·GPU orders; (3) capacity expansion diluting fixed costs and improving capacity utilization; (4) domestic substitution reducing dependence on high-end material/equipment imports. The largest structural constraint is relatively high customer concentration (AMD alone accounts for over 50% of revenue, top five customers nearly 70%), with significant amplification effect of AMD order fluctuations on gross profit elasticity.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

Reporting Period	Operating Revenue	YoY	Net Profit Attributable to Parent	YoY
2026H1	RMB 16.041 billion	+23.03%	Attributable RMB 1.717 billion	+316.77%
2026Q2	RMB 8.559 billion	+23.23%	Attributable RMB 1.388 billion	+346.86%
2026Q1	RMB 7.482 billion	+22.80%	Attributable RMB 329 million	+224.55%
2025A	RMB 27.921 billion	+16.92%	Attributable RMB 1.219 billion	+79.86%
2024A	RMB 23.882 billion	+7.24%	Attributable RMB 678 million	+299.90%

2026 semi-annual report data as of 2026-06-30, announcement date 2026-08-28/29; 2025 annual report announcement date 2026-04-16, data as of 2025-12-31; 2024 annual report announcement date 2025-04-11. 2026H1 non-GAAP net profit attributable to parent RMB 747 million, +77.78% year-on-year (implying 2025H1 non-GAAP of approximately RMB 420 million); 2026H1 basic earnings per share RMB 1.1317; 2026Q2 non-GAAP RMB 576 million, +82.06% year-on-year, +321.93% quarter-on-quarter attributable net profit; 2026Q2 revenue +14.4% quarter-on-quarter. 2025 non-GAAP net profit RMB 841 million, +35.34% year-on-year, basic EPS RMB 0.80, gross margin 14.6% (-0.2pct), net margin 4.9% (+1.6pct), proposed RMB 0.81 per 10 shares, Q4 single-quarter net profit RMB 358 million (-20% quarter-on-quarter). 2024 non-GAAP RMB 621 million, +944.13% year-on-year, basic EPS RMB 0.45, EBITDA RMB 4.815 billion (+9.38% year-on-year). Historical EPS series: 2023 RMB 0.1116 → 2024 RMB 0.4465 → 2025 RMB 0.8031 (East Money forecast statistics). Data sources: CS.com.cn, Securities Times, Cailian Press, Zhitong Finance, Jiemian, East Money, Sina Finance, Securities Star, etc.

Performance drivers (Company basis): AI computing, storage, automotive and domestic customer demand driven, capacity utilization improved, mid-to-high-end product proportion increased. ★Key uncertainty requiring emphasis: 2026H1 net profit attributable to parent +316.77% year-on-year while non-GAAP only +77.78%, with a huge difference (H1 attributable RMB 1.717 billion vs non-GAAP RMB 747 million, non-recurring gains/losses approximately RMB 970 million), indicating significant one-time/non-operating income in the period (possibly investment income, asset disposal or fair value changes, etc.). This retrieval did not find the specific composition details of the non-recurring items. Recommend flagging in formal reports that readers should be cautious when interpreting growth using the net profit basis, and supplement verification of the interim report's "non-recurring gains and losses" details. Additionally, Huaxi Securities F10 page shows "total operating revenue RMB 16.041 billion, net profit RMB 1.774 billion, net profit +77.78% year-on-year, ROE 10.54%," where RMB 1.774 billion should be net profit including minority interests (attributable is RMB 1.717 billion), and its "net profit +77.78% year-on-year" is actually a mismatched labeling of the non-GAAP growth rate, identified as a methodology/labeling issue, not used as contradictory evidence.

3.2 Earnings Forecast

Institutional earnings forecasts based on East Money "Earnings Forecast" page, retrieval time approximately 2026-09, source http://emweb.securities.eastmoney.com/ProfitForecast/index?code=SZ002156 . Consensus EPS: 2026E RMB 1.2133 (9 institutions), 2027E RMB 1.3967 (9 institutions), 2028E RMB 1.6825 (8 institutions); forecast net asset per share 2026E approximately RMB 11.39. Recent six-month average EPS and corresponding PE: 2026E 1.21 (PE 48.11), 2027E 1.40 (PE 41.77), 2028E 1.68 (PE 34.69), PE calculated based on the page's report date price. Net profit basis forecasts from public research reports compiled by Kaiyuan Securities (source https://stock.stockstar.com/RB2026050600037590.shtml and 9fzt reprint), institutional forecast dates detailed in research notes: Huatai Securities (2026-04-19), Zhongtai Securities (2026-04-19), Founder Securities (2026-04-27), Shenwan Hongyuan (2026-04-23), Guosen Securities (2026-04-21), Ping An Securities (2026-04-01), Capital Securities (2026-02-25), China Post Securities (2026-02-02), Huajin Securities (2026-01-12), Industrial Securities (2025-12-02), Kaiyuan Securities (2026-05-06). Citi (2026-06-23 research report, via media) forecasts 2026–2028 revenue of RMB 32.7/36.8/41.3 billion, net profit of RMB 1.65/1.95/2.3 billion, target price raised from RMB 48 to RMB 80, Buy, source http://news.10jqka.com.cn/20260623/c677642500.shtml and Sina.

Year	Operating Revenue	Net Profit Attributable to Parent	Net Profit Growth	Earnings Per Share (EPS)
2026E	Data missing: consensus page only provides EPS and net profit basis forecasts, no unified revenue forecast value listed (Citi forecasts 2026 revenue of RMB 32.7 billion)	Data missing: no unified consensus net profit; individual institutions such as Huatai RMB 1.596 billion, Zhongtai RMB 1.577 billion, Founder RMB 1.534 billion, Shenwan Hongyuan RMB 1.532 billion, Guosen RMB 1.383 billion, Ping An RMB 1.541 billion, Capital RMB 1.883 billion, China Post RMB 1.649 billion, Huajin RMB 1.341 billion, Industrial RMB 1.854 billion, Kaiyuan RMB 1.489 billion, Citi RMB 1.65 billion	Data missing: no unified net profit growth rate provided	Consensus RMB 1.2133 (9 institutions); recent six-month average RMB 1.21 (PE 48.11); Zhongtai 1.55, Kaiyuan 1.65, Guosen 1.47, Industrial 1.13, Founder 1.01, Shenwan Hongyuan 1.01; Huatai 1.05, Kaiyuan 1.22, Citi no EPS listed
2027E	Data missing: consensus page only provides EPS and net profit basis forecasts, no unified revenue forecast value listed (Citi forecasts 2027 revenue of RMB 36.8 billion)	Data missing: no unified consensus net profit; individual institutions such as Huatai RMB 1.875 billion, Zhongtai RMB 2.086 billion, Founder RMB 2.023 billion, Shenwan Hongyuan RMB 1.737 billion, Guosen RMB 1.694 billion, Ping An RMB 1.849 billion, Capital RMB 2.850 billion, China Post RMB 2.066 billion, Huajin RMB 1.644 billion, Industrial RMB 2.034 billion, Kaiyuan RMB 1.851 billion, Citi RMB 1.95 billion	Data missing: no unified net profit growth rate provided	Consensus RMB 1.3967 (9 institutions); recent six-month average RMB 1.40 (PE 41.77); Zhongtai 1.96, Kaiyuan 1.59, Guosen 1.50, Industrial 1.34, Founder 1.33, Shenwan Hongyuan 1.14; Huatai 1.24, Kaiyuan 1.22
2028E	Data missing: consensus page only provides EPS and net profit basis forecasts, no unified revenue forecast value listed (Citi forecasts 2028 revenue of RMB 41.3 billion)	Data missing: no unified consensus net profit; individual institutions such as Huatai RMB 2.177 billion, Zhongtai RMB 2.593 billion, Founder RMB 2.522 billion, Shenwan Hongyuan RMB 1.951 billion, Guosen RMB 1.964 billion, Kaiyuan RMB 2.341 billion, Citi RMB 2.3 billion	Data missing: no unified net profit growth rate provided	Consensus RMB 1.6825 (8 institutions); recent six-month average RMB 1.68 (PE 34.69); Zhongtai 2.41, Kaiyuan 1.91, Guosen 1.80, Industrial 1.52, Founder 1.66, Shenwan Hongyuan 1.29; Huatai 1.43, Kaiyuan 1.54

3.3 Valuation Levels and Institutional Ratings

Institution	Rating	Date	Notes
Guosen Securities	Buy	2026-09-05	Recent rating
Guosen Securities	Buy	2026-09-03	Recent rating
Kaiyuan Securities	Buy	2026-09-02	Recent rating
Zhongtai Securities	Buy	2026-09-01	Recent rating
Guosen Securities	Buy	2026-08-07	Recent rating
Guosen Securities	Buy	2026-06-08	Recent rating
Industrial Securities	Overweight	2026-05-29	Recent rating
Dongguan Securities	Buy	2026-05-24	Recent rating
Orient Securities	Buy	2026-05-20	Recent rating
Huatai Securities	Buy	2026-04-19	Target price page shows RMB 56.22, Huatai original text RMB 56.30
Citi	Buy	2026-06-23	Target price RMB 80, raised from RMB 48; valuation basis 4.3x 2026 PB → 6.5x 2027 PB
Capital Securities	Data missing: rating not clearly recorded	2026-02-25	Target price RMB 65.00
Rating Summary (East Money)	Buy	As of 2026-09-05	1-month composite rating "Buy" (coefficient 4.67, 2 Buy/1 Overweight, 3 total); 6-month 5 Buy/4 Overweight (9 total); 1-year 14 Buy/6 Overweight (20 total)
Investing.com Consensus	Buy	Data missing: page does not indicate clear date, may be outdated	Average target price RMB 55.39 (4 analysts), high RMB 80, low RMB 25.14, consensus 6 Buy/1 Hold/0 Sell
MarketScreener	Data missing: rating not clearly recorded	Older, specific date missing	Previously showed average target price RMB 40.34, for reference only

★Data gap, must flag: Retrieved market/valuation data has inconsistent time points and sources, and an authoritative "current closing price + market cap + PE(TTM) + PB" snapshot could not be obtained. The PE given on the East Money forecast page is a static reference under "report date price" (2025A PE 72.66, 2026E PE 48.11, etc., corresponding to an implied stock price of approximately RMB 58), not real-time; Investing.com gives a 52-week range of RMB 31.10–84.70, indicating extreme price amplitude during the period; Huaxi Securities F10 page (page updated 2026-08-29) lists: EPS RMB 1.13, net asset per share RMB 11.1, ROE 10.54%, total assets RMB 51.527 billion, shareholders' equity RMB 18.478 billion. Using the 2026H1 realized EPS of RMB 1.1317 (half-year) and net asset per share of approximately RMB 11.1 as a rough reference, the P/B and dynamic P/E will fluctuate significantly with real-time stock prices; this note does not provide uncross-verified real-time PE/PB/market cap figures. Recommend confirming separately in formal reports using real-time market data sources (such as exchanges or reliable quote pages) and noting the retrieval time. ★Target price range is extremely wide (RMB 25.14–80), mainly due to different sample institutions and different dates (significant stock price and expectation fluctuations from February to June), and Citi's RMB 80 target price represents a foreign bank's optimistic scenario and cannot be regarded as consensus. Target price summary (inconsistent methodologies, must be listed in parallel): Huatai Securities RMB 56.30 (2026-04-19, based on 2026 BPS RMB 11.26, 5.0x PB, Buy); Citi RMB 80 (2026-06-23, raised from RMB 48, valuation basis 4.3x 2026 PB → 6.5x 2027 PB, Buy); Capital Securities RMB 65.00 (2026-02-25); Investing.com consensus average RMB 55.39 (4 analysts), high RMB 80, low RMB 25.14, consensus "Buy" (6 Buy/1 Hold/0 Sell, note this page data may be outdated and the sample is only 4 institutions, inconsistent with Chinese brokerage samples); MarketScreener previously showed average target price RMB 40.34 (older, for reference only).

4. Recent News and Announcements

4.1 Private Placement Completed: Targeted A-Share Issuance Registration Completed, Total Proceeds RMB 4.220 Billion

CSRC approval document number is CSRC Permit [2026] No. 1603. Issuance quantity 76,200,794 shares, issue price RMB 55.38/share, total proceeds RMB 4.220 billion, net amount after deducting issuance expenses RMB 4.209 billion. The Company's total share capital increased from 1,517,596,912 shares to 1,593,797,706 shares. 18 institutions were allocated, covering industrial capital, public funds, local government funds, overseas institutions, insurance/securities asset management, etc. Total proceeds of RMB 3.170 billion allocated to four major capacity improvement projects: storage chip packaging & testing approximately RMB 800 million; automotive and other emerging applications packaging & testing RMB 1.055 billion; wafer-level packaging & testing RMB 695 million; high-performance computing and communications packaging & testing RMB 620 million. Reports also indicate this private placement size was reduced by approximately RMB 180 million from the original plan. The issuance results report was disclosed on the same day as the semi-annual report (approximately end of August 2026), and Economic Information Daily reported on 2026-09-07. Uncertainty: The private placement issue price was RMB 55.38/share, while the 2026-06-25 closing price was RMB 77.81/share (an all-time high that day), with a significant difference between the two, presumed to be due to an earlier pricing reference date, but not directly verified in obtained materials; recommend referring to the official "Issuance Results Report."

4.2 National IC Fund Phase I Continues to Reduce Holdings, Shareholding Ratio Dropped from 11.72% to 5.00%

2026-06-25 announcement: Reduction due to its own operational and management needs, combined with passive dilution from equity incentives, shareholding ratio dropped from 11.72% to 5.00%, a total decrease of 6.72%; remains the second largest shareholder after the change. Cumulative: From 2023-11-08 to 2026-06-24, cumulative reduction of 101,810,168 shares (over 100 million shares). By segment: From 2026-05-08 to 2026-06-24, reduced 14.6653 million shares (0.9664% of total share capital), average price RMB 65.19/share, cashing out approximately RMB 956 million; from 2026-01-22 to 2026-05-07, reduced 10.7254 million shares, average price RMB 49.82/share, cashing out approximately RMB 534 million; within six months before the announcement, centralized bidding reduction of 25.3907 million shares, price range RMB 55.00–78.49/share. As of 2026-06-24, held 75.8797 million shares, shareholding ratio 5.00%. Historical peak: After acquiring Fujitsu (China) shares by agreement in 2018, shareholding ratio reached 21.72%. Company response: The National IC Fund reduced holdings based on its own operational and management considerations, with no impact on the Company's normal operations. Supplement: According to Cailian Press, as of the end of Q1 2026, the National IC Fund's shareholding ratio was 6.47%; also according to Cailian Press company profile page, as of 2026-03-31, National IC Fund Phase II held 0.95%. No latest progress on Phase II reduction was retrieved in this round; needs separate verification.

4.3 Controlling Shareholder Nantong Huada Microelectronics Group's Active Reduction and Subsequent Passive Dilution

Active reduction: From 2026-01-21 to 2026-01-23, reduced 15 million shares (0.9885%) in the secondary market, average price RMB 56.04/share, post-reduction holdings of 285,344,715 shares, accounting for 18.8042% (announcement date 2026-01-27). Passive dilution: Due to the new share capital from this private placement, Huada Micro's holding quantity remained unchanged (285,344,715 thousand shares), but its ratio was passively diluted from 18.80% to 17.90% (decrease of 0.9%, reaching 1% integer multiple), announcement number 2026-058, equity change date marked as 2026-09-16, announcement date 2026-09-11. The Company emphasized no change in control, no impact on operations or governance structure.

4.4 Directors, Supervisors and Senior Management Shareholding Passively Diluted Due to Private Placement (Announcement No. 2026-059)

2026-09-11 announcement (No. 2026-059): Directors, supervisors and senior management did not participate in this private placement subscription, holding quantities unchanged, ratios passively diluted due to expanded total share capital: Shi Lei (Chairman, President) 78,000 shares, 0.0051% → 0.0049%; Shi Mingda (Vice Chairman, Honorary Chairman) 65,000 shares, 0.0043% → 0.0041%; Xia Xin (Director, Vice President) 24,050 shares; Jiang Shu (Vice President, Board Secretary) 24,571 shares; Zhuang Zhenming (Vice President) 1,300 shares.

4.5 Share Buyback: Cumulative Buyback of 39,300 Shares as of May 31, 2026

Only a single source retrieved (Shenzhen Stock Exchange Interactive Easy, 2026-06-24 reply): As of May 31, 2026, the Company through its dedicated buyback securities account cumulatively repurchased 39,300 shares via centralized bidding, accounting for 0.01% of current total share capital, highest transaction price RMB 29.27/share, lowest RMB 28.89/share, total payment RMB 1,139,791 (excluding transaction fees). Historical background: There was a buyback plan in 2019 (total funds RMB 40–80 million, price ceiling RMB 15.11/share, for equity incentives/employee stock ownership), an old matter unrelated to the current situation. Uncertainty: No formal buyback plan announcement or buyback progress announcement for 2026 was retrieved in this phase; the above 39,300 share data comes from a single source, with a very small amount (approximately RMB 1.14 million), cannot be cross-verified, may be sporadic operations/special statistical methodology; recommend referring to the Company's formal announcements, and not directly citing as evidence of ongoing buybacks.

4.6 2025 Profit Distribution Plan Approved by Shareholders' Meeting

2025 profit distribution plan: Cash dividend of RMB 0.81 per 10 shares (tax inclusive). The 2025 annual shareholders' meeting was held on 2026-05-08 and approved, resolution announcement date 2026-05-09 (announcement number 2026-042); also approved the "Company's 2026 Operating Targets and Investment Plan," "2025 Financial Final Accounts Report" and other proposals.

4.7 2026 Semi-Annual Results: Revenue RMB 16.041 Billion +23.03% YoY, Net Profit Attributable to Parent RMB 1.717 Billion +316.77% YoY

2026 semi-annual report: Operating revenue RMB 16.041 billion, +23.03% year-on-year; net profit attributable to parent RMB 1.717 billion, +316.77% year-on-year; non-GAAP net profit attributable to parent RMB 747 million, +77.78% year-on-year. 2026 Q2 single quarter: Revenue RMB 8.559 billion, net profit attributable to parent RMB 1.388 billion, non-GAAP attributable RMB 576 million. Of the net profit attributable to parent, RMB 970 million came from non-recurring gains and losses (mainly good investment returns from industrial investments in upstream and downstream industry chain layout), hence non-GAAP growth (+77.78%) is far lower than attributable growth (+316.77%), which is a key point that must be distinguished when citing. 2026H1 IC packaging & testing gross margin 15.12%, +0.73 percentage points year-on-year; R&D investment RMB 825 million, +9.25% year-on-year. No formal earnings forecast/pre-increase announcement was retrieved; the Company directly disclosed the semi-annual report. Supplementary historical base (investor relations records, 2026-07-07): 2023/2024/2025 revenue were RMB 22.269/23.882/27.921 billion respectively, net profit attributable to parent RMB 169/678/1,219 million respectively; 2026Q1 revenue RMB 7.482 billion, net profit attributable to parent RMB 329 million. 2026 revenue target RMB 32.3 billion (+15.68% year-on-year).

4.8 Policy/Regulatory and Interactive Platform Responses

Private placement received CSRC registration approval (CSRC Permit [2026] No. 1603) — core regulatory matter, completed. 2026-09-11 interactive platform response: The Company currently has no intention of developing into an integrated company, emphasizing focus on its core packaging & testing business.

4.9 M&A/Investment Related Matters

Acquisition of 26% equity in Jinglong Technology, completed delivery and payment on 2025-02-13; the Company conducts industrial layout through co-investment in partnerships with professional investment institutions (progress announcement disclosed 2025-12-17; progress announcement on transfer of Jiaxing Jingyao partnership shares disclosed 2025-03-01).

4.10 Historical Announcement Timeline (Memo, subject to verification against Cninfo/SZSE original text)

2025-12-31 proposed annual report disclosure (2026-04-17); 2025-12-17 co-investment partnership progress; 2025-12-16 2025 Second Extraordinary Shareholders' Meeting resolution; 2025-11-29 8th Board of Directors 15th Meeting; 2025-10-28 Q3 report; 2025-10-17 major shareholder reduction pre-disclosure; 2025-10-14 decline deviation reached 7%; 2025-09-09 shareholding 5%+ shareholder reduction plan expiration and results announcement; 2025-08-29 2025 semi-annual report; 2025-07-01 shareholding 5%+ shareholder share change ratio reached 1% integer multiple; 2025-05-19 major shareholder reduction pre-disclosure; 2025-04-30 Q1 report.

4.11 Key Uncertainties Requiring Emphasis

1) Time reference: This round was unable to obtain a clear current date from the system; the latest announcement is 2026-09-11, from which the current time is inferred to be approximately mid-September 2026; if the actual date differs, some recent statements need adjustment. 2) Whether National IC Fund Phase II simultaneously reduced holdings and its current shareholding ratio (previously 0.95%, as of 2026-03-31) — no latest disclosure found. 3) Buyback data (39,300 shares/approximately RMB 1.14 million) from a single source (Interactive Easy), with an unusually small amount, no corresponding formal buyback announcement found, must be used cautiously or verified. 4) Private placement issue price (RMB 55.38) differs significantly from the concurrent secondary market price (RMB 77.81 on June 25), pricing reference date not confirmed in materials. 5) Semi-annual report net profit attributable to parent +316.77% includes RMB 970 million non-recurring gains and losses, differing greatly from non-GAAP +77.78%, the two cannot be used interchangeably. 6) Specific semi-annual report disclosure date not directly obtained (issuance report states disclosed on the same day as the semi-annual report, Economic Information Daily reported 2026-09-07); recommend verifying the exact disclosure date against Cninfo/SZSE original text. 7) Some data (such as shareholders' meeting, dividends, reduction segment details) from financial media or third-party data page reprints; recommend using Cninfo and SZSE announcement original text as the final basis.

5. Stock Price Trend and Technical Analysis

5.1 Price Overview

Indicator	Value
Security	TongFu Microelectronics Co., Ltd., 002156.SZ, Shenzhen Stock Exchange, mainly engaged in IC packaging & testing (OSAT) services; headquartered in Nantong, Jiangsu
Closing Price	RMB 58.00, vs. previous close (58.34) −0.34 / −0.58%
Open / High / Low	RMB 57.01 / 58.40 / 56.22
Amplitude	3.74%
Volume / Turnover	550,100 lots / RMB 3.148 billion (Sina basis RMB 3.186 billion)
Turnover Rate / Volume Ratio	3.63% / 0.92
Total Share Capital / Tradable Shares	1.518 billion shares / 1.517 billion shares
Total Market Cap / Tradable Market Cap	RMB 88.021 billion / RMB 88.012 billion
Dynamic P/E	25.63 (stcn / Jiufang basis, annualized based on latest 2026H1 results)
P/E (TTM)	34.87 (Baidu Finance, Jiufang, MarketWatch consistent)
P/E (Static)	72.22 (based on 2025 full-year results)
Dynamic P/B	5.23
Limit Up / Limit Down Reference Price	RMB 64.17 / 52.51
52-Week High	RMB 84.70 (MarketWatch, Barron's, MSN, investing.com Chinese site, MarketScreener — five sources consistent; specific peak date not verified)
52-Week Low	Adopted RMB 30.26 as primary (Barron's / MSN English / investing.com Chinese multi-source consistent); other sources show RMB 32.52 (MarketWatch), RMB 29.16 (hk.investing.com), RMB 25.68 (MSN Chinese page cache), range approximately RMB 29–32.5 with divergence
Period Return and Beta	Past 52 weeks +86.93%, year-to-date +53.85%, past 1 year +75.17% (stockanalysis 9/10; MarketWatch); Beta(5Y) 1.01
Distance from 52-Week High/Low	Current price RMB 58.00 has retraced approximately 31.5% from 52-week high of RMB 84.70, still approximately 91% above the 52-week low of RMB 30.26
Valuation Methodology Note	On the same day, dynamic PE 25.63 / TTM PE 34.87 / static PE 72.22 differ greatly; when citing PE, the methodology must be noted and cannot be used interchangeably; stockanalysis (9/10) gives TTM PE 35.21, forward PE 50.90, opposite direction from dynamic PE, the two methodologies have directional conflict; recommend using TTM PE 34.87 as the primary methodology
Excluded Suspicious Sources	investing.com Poland site (22.84), Japan site (23.58), MarketScreener German/Austrian site (21.56), MarketScreener English page (48.02) severely inconsistent with the day's RMB 58.00, judged as cross-currency/outdated snapshot pages, not adopted

5.2 Technical Indicators

Indicator	Value	Brief Interpretation
MA5	58.43 (Jiufang Zhitou, 2026-09-11 close)	Current price RMB 58.00 below it
MA10	59.42 (Jiufang Zhitou, 2026-09-11 close)	Current price RMB 58.00 below it
MA20	61.78 (Jiufang Zhitou, 2026-09-11 close)	Current price RMB 58.00 below it; MA5<MA10<MA20 in bearish alignment, current price below all three short-term moving averages
MACD	DIF -1.73, DEA -1.46, MACD bar -0.55 (below zero line) (Jiufang Zhitou, 2026-09-11 close)	Below zero line; according to Jiufang, MACD death cross below zero line on September 2
Moving Average Pattern	"Moving average death triangle" formed on September 3, upper moving average resistance at RMB 65.90 (Jiufang Zhitou)	Short-term moving average structure bearish, upper RMB 65.90 constitutes moving average resistance reference
RSI	September 1 RSI death cross and broke below 50 (Jiufang Zhitou)	Momentum indicator weakening signal
Other Pattern Signals	July 29 daily-level "bear point" appeared, downside gap support at RMB 50.15 (Jiufang Zhitou)	Watch RMB 50.15 gap support below
Chip Cost Average	RMB 62.68 (Jiufang Zhitou)	Current price below it, indicating chip cost zone mainly at high levels, no recent dense trading support below
Bollinger Bands	Bollinger Bands section content missing in research notes (text ends at "**Bo"), specific values not provided	Data missing, cannot provide judgment based on Bollinger Bands

As of the 2026-09-11 close, TongFu Microelectronics closed at RMB 58.00, down RMB 0.34 (−0.58%), amplitude 3.74%, turnover approximately RMB 3.148 billion, turnover rate 3.63%, volume ratio 0.92, total market cap approximately RMB 88.0 billion. Technically, the current price is below MA5 (58.43), MA10 (59.42) and MA20 (61.78), in MA5<MA10<MA20 bearish alignment; MACD's DIF/DEA/bar are all below the zero line; Jiufang notes a "moving average death triangle" formed on September 3 (upper resistance RMB 65.90), MACD death cross below zero line on September 2, RSI death cross and broke below 50 on September 1, daily-level "bear point" appeared on July 29 (downside gap support RMB 50.15), chip cost average RMB 62.68 above current price, mainly high-level chips. On valuation, the same day's dynamic PE 25.63, TTM PE 34.87, static PE 72.22 — three methodologies differ greatly, citations must note methodology, recommend using TTM PE 34.87 as primary. 52-week high RMB 84.70 (multi-source consistent), 52-week low adopted at RMB 30.26 (range approximately RMB 29–32.5 with source divergence); current price has retraced approximately 31.5% from the 52-week high, still approximately 91% above the 52-week low, lacking recent dense trading support below. Note the Bollinger Bands data is missing from the notes.

5.3 Short-Term Outlook (Next Week, Scenario Analysis, for Reference Only)

⚠️ Risk Warning: The following content is solely subjective scenario analysis based on public data as of the 2026-09-11 close. Scenario weights are heuristic judgments, not statistical probabilities, and do not constitute investment advice or buy/sell operation instructions.

① Key Technical Levels

Level	Range	Description
Short-Term Resistance	RMB 61.8–62.7	Range formed by MA20 (RMB 61.78) and chip cost average (RMB 62.68); recovering this range would alleviate current bearish alignment pressure
Short-Term Upper Resistance (Stronger)	RMB 64.2–65.9	Limit-up reference price (RMB 64.17) and the moving average resistance level indicated by the September 3 "moving average death triangle" (RMB 65.90); effective breakout requires volume confirmation, otherwise viewed as rebound ceiling reference
First Support	RMB 56.0–58.0	September 11 low (RMB 56.22) and closing price (RMB 58.00) area; if broken, short-term oscillation center shifts lower
Strong Support	RMB 50.1–52.5	July 29 "bear point" indicated downside gap support (RMB 50.15) and limit-down reference price (RMB 52.51) area; if this range is lost, downside reference would point to the 52-week low area (adopted RMB 30.26, source range approximately RMB 29–32.5 with divergence)
52-Week High	RMB 84.70 (single price, not a range)	Multi-source consistent, specific peak date not verified; current price has retraced approximately 31.5% from it, medium-to-long-term upside reference
52-Week Low	RMB 29–32.5 (range, source divergence)	Adopted RMB 30.26 as primary, other sources include RMB 32.52, RMB 29.16, RMB 25.68; current price still approximately 91% above it

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

Packaging & testing is in the midstream of the semiconductor industry chain, with upstream comprising materials (lead frames, substrates, bonding wires, molding compounds) and equipment (mostly imported), and downstream comprising chip design companies (Fabless/IDM). The domestic packaging & testing industry is transitioning toward advanced packaging, with FlipChip, SiP, and wafer-level packaging becoming competitive focal points. According to Xinsixiang Research Institute statistics, among global OSAT companies in 2024, TongFu Microelectronics had a market share of 8.01%, ranking fourth globally and second in mainland China (Economic Information Daily 2026-09-07, stcn.com reprint, multi-source reprints consistent).

6.2 Competitive Landscape

Industry structure: Packaging & testing is in the midstream of the semiconductor industry chain, with upstream being materials and equipment, and downstream being chip design companies (Fabless/IDM).
Main competitive battlefield: The domestic packaging & testing industry is transitioning toward advanced packaging, with FlipChip, SiP, and wafer-level packaging becoming competitive focal points (Sohu/multiple media reports, 2026-08).
Company third-party ranking: 2024 global OSAT share 8.01%, fourth globally, second in mainland China (Xinsixiang Research Institute, multi-source reprints consistent).
Implied competitors: Global top three typically are ASE, Amkor, JCET; mainland China first is JCET, third typically Huatian Technology (inferred based on "fourth globally, second in mainland" methodology, needs subsequent verification against third-party ranking original text).
⚠ Competitor-specific retrieval not completed (tool step limit); this section's peer comparison is a draft pending verification and should not be directly adopted; apart from the relatively confident "ASE/Amkor/JCET/TongFu/Huatian" landscape order, other peers' specific positioning and differentiation points are general knowledge, and no sourced benchmark data was obtained in this retrieval round.

6.3 Main Competitors

Company	Positioning	Description
ASE	Global OSAT #1 (layout order inference, needs verification against third-party ranking original text)	Specific retrieval not completed this round, positioning is general knowledge, no sourced benchmark data obtained, pending supplementary verification
Amkor	Global OSAT #2 (layout order inference, needs verification against third-party ranking original text)	Same as above, pending supplementary verification
JCET (600584.SH)	Mainland China packaging & testing leader, global ranking typically third; business covers advanced packaging, system-level packaging, storage/automotive/communications (pending verification)	Same as above, pending supplementary verification
Huatian Technology (002185.SZ)	Mainland China packaging & testing #3; both traditional and advanced packaging, layout in SiP, Bumping, TSV, fan-out packaging (pending verification)	Same as above, pending supplementary verification
Yongsi Electronics (688362.SH)	Relatively young packaging & testing company, focused on mid-to-high-end packaging, FC/SiP/system-level packaging (pending verification)	Specific retrieval not completed this round, general knowledge, no sourced benchmark data obtained, not suitable for direct adoption
China Wafer Level CSP (603005.SH)	Segment leader featuring CIS image sensor wafer-level packaging (pending verification)	Same as above, pending supplementary verification
Qizhong Technology (688352.SH)/Huicheng Shares (688403.SH)	Display driver chip packaging & testing segment leaders (pending verification)	Same as above, pending supplementary verification
TongFu Microelectronics (002156.SZ)	2024 global OSAT share 8.01%, fourth globally, second in mainland China (Xinsixiang Research Institute, multi-source reprints consistent)	The Company; third-party ranking data source is Xinsixiang Research Institute, multi-source reprints consistent via Economic Information Daily, stcn.com

Based on third-party ranking methodology, in the 2024 global OSAT landscape, TongFu Microelectronics ranked fourth globally and second in mainland China with 8.01% share, preceded by ASE, Amkor, and JCET. TongFu Microelectronics' differentiated positioning lies in deeply binding with AMD through a "joint venture + cooperation" model (accounting for over 80% of AMD's related products), undertaking mid-to-high-end packaging orders such as AI computing/server CPU·GPU, with customer concentration significantly higher than the industry average (AMD alone accounts for over 50% of revenue, top five customers nearly 70%), with significant amplification effect of order fluctuations on gross profit elasticity; the domestic packaging & testing industry as a whole is transitioning from traditional packaging to advanced packaging such as FlipChip, SiP, and wafer-level packaging, with competition focused on advanced packaging capacity and customer binding capability. ⚠ The above peer comparison is a draft pending verification: Competitor-specific retrieval was not completed due to tool step limits; apart from the relatively confident "ASE/Amkor/JCET/TongFu/Huatian" landscape order, other specific positioning and differentiation points are general knowledge, and no sourced benchmark data was obtained in this retrieval round. Supplementary retrieval of "packaging & testing competitive landscape 2025/2026" and each company's annual report is needed before finalizing.

7. Risk Warnings

Relatively high customer concentration: 2025 top five customer revenue proportion approximately 69.54%, AMD revenue proportion approximately 52.29%, and the Company discloses that AMD accounts for over 80% of its related product packaging & testing. If AMD orders decline 5% or 10%, the Company's self-assessed revenue would decline approximately 2.52%–2.97% or 5.04%–5.94%, with gross profit decline potentially reaching 5.02%–6.93% or 10.04%–13.85%.
Uncertainty in 2026 H1 profit quality: Net profit attributable to parent RMB 1.717 billion, while non-GAAP net profit attributable to parent only RMB 747 million, with approximately RMB 970 million from non-recurring gains and losses, mainly related to investment returns from upstream and downstream industry chain layout. If subsequent non-recurring gains are not sustainable, attributable profit growth may be significantly lower than the H1 apparent growth rate.
Capacity expansion and capital expenditure return risk: Private placement net proceeds RMB 4.209 billion, of which RMB 3.170 billion allocated to four major capacity projects; 2026 H1 net investing cash flow was a net outflow of RMB 5.118 billion. If storage, automotive, wafer-level packaging & testing or high-performance computing project production progress, customer introduction or capacity utilization fall short of expectations, it may lead to increased depreciation and fixed costs with profitability improvement below expectations.
Limited gross margin elasticity in packaging & testing business: The Company's long-term gross margin is approximately in the 12%–17% range, 2025 gross margin approximately 14.59%, and the Company's bargaining power over materials such as lead frames, substrates, bonding wires, and molding compounds is relatively weak; high-end materials and some core equipment remain primarily imported, and raw material price increases, supply constraints or import disruptions may compress profit margins.
Semiconductor industry cycle and product structure risk: The Company's 2023 gross margin dropped to 11.67%, with performance affected by weakened consumer electronics demand, inventory destocking and declining capacity utilization. If AI computing, storage, automotive electronics and other demand fall short of expectations, or traditional consumer business prices and demand come under pressure, insufficient mid-to-high-end product ramp-up may cause revenue, utilization and gross margin to come under simultaneous pressure.
Equity financing and shareholder reductions may bring market pressure: After the private placement, total share capital increased from approximately 1.518 billion shares to approximately 1.594 billion shares, with share dilution factors; National IC Fund shareholding ratio dropped from 11.72% to 5.00%, controlling shareholder Nantong Huada Microelectronics Group also actively reduced holdings and was passively diluted by the private placement; subsequent shareholder structure changes may affect market sentiment.
Valuation and stock price volatility risk: As of September 11, 2026, the stock price was RMB 58.00, but different data sources give dynamic P/E, TTM P/E and static P/E of approximately 25.63x, 34.87x and 72.22x respectively, with large valuation methodology differences; the stock price has retraced approximately 31.5% from the 52-week high, but technical indicators still show short-term weakness; if it breaks below RMB 56.22 and further loses the RMB 50.15–52.51 area, market volatility may intensify.
Data methodology and disclosure timing risk: Top five customer proportion has different methodologies of 69.54% and 69.73%, production base count, M&A completion timing and some shareholder and buyback information also have source or timing differences; for formal judgment of the Company's operations and valuation, the latest annual report, semi-annual report and SZSE, Cninfo announcements should be used as the basis.

8. Conclusion and Outlook

TongFu Microelectronics' medium-term growth logic mainly comes from increased advanced packaging and mid-to-high-end product proportion, AMD-related AI computing and server product orders, expansion into new applications such as storage and automotive electronics, and improved capacity utilization after expansion. From 2024 to 2025, the Company's revenue increased from RMB 23.882 billion to RMB 27.921 billion, and net profit attributable to parent increased from RMB 678 million to RMB 1.219 billion; in H1 2026, revenue continued to maintain double-digit growth, indicating that industry recovery and product structure improvement are still continuing. After the private placement funds are deployed, project construction progress, capacity ramp-up and profitability contribution of new capacity will become key areas to watch going forward.

However, the Company remains a heavy-asset, low-net-margin packaging & testing foundry enterprise, with historical gross margin approximately in the 12%–17% range, and profitability relatively sensitive to capacity utilization, product prices and customer structure. To judge the quality of core business growth in the future, focus should be on distinguishing non-GAAP profit from attributable profit including investment income and other items, and tracking whether advanced packaging projects can bring sustained gross margin improvement, rather than relying solely on one-time gains or cyclical rebound.

From a market performance perspective, the stock price is currently below short-term moving averages, with RMB 61.8–62.7 corresponding to MA20 and chip cost average, and RMB 50.1–52.5 as the disclosed strong support reference below. Whether fundamentals and market performance can improve going forward depends on AMD order stability, non-AMD customer expansion, private placement project production efficiency, capital expenditure returns and convergence of non-recurring gains and losses in profit; the above factors still need continuous verification through subsequent announcements and financial data.

Data Sources

Reports are generated by AI from public online information and may contain errors or outdated information. They are for research only, not investment advice. Verify material facts against company filings and authoritative sources.