EpiWorld International Overview
Epiworld is the world's largest independent supplier of silicon carbide epitaxial wafers. Epitaxial wafers are the engineered layer grown on a SiC substrate, from which power MOSFETs and diodes are made. According to China Insights Consultancy (CIC), cited in the prospectus, the company held a 31.6% global share of SiC epitaxy by wafer volume in 2024. It has ranked first since 2023, ahead of a second-placed supplier at 19.4%. The company was founded by Dr. Zhao Jianhui, who was the first researcher elected an IEEE Fellow for contributions to SiC technology. It was the first in China to commercialise 3-, 4-, 6- and 8-inch SiC epitaxy, the first globally to supply 8-inch epitaxial wafers in volume, and the first to launch a 12-inch SiC epitaxial wafer (December 2025). It led the drafting of the first SEMI international standard for SiC epitaxy. Customers include four of the world's top five and eight of the top ten SiC power-device makers. After a 2024–2025 price-driven downturn, revenue nearly doubled in H1 2026 on demand from AI data-centre power supplies. Management's preliminary guidance for FY2026 is revenue of RMB1.61–1.76 billion.
The company profiled here is Epiworld International Co., Ltd. (瀚天天成電子科技（廈門）股份有限公司), a joint-stock company incorporated in the People's Republic of China. Its H shares trade on the Main Board of The Stock Exchange of Hong Kong under stock code 2726. Its website is www.epiworld.com.cn. It is the silicon carbide (SiC) epitaxial wafer maker named in the Global Silicon Carbide Epitaxial Wafers Market.
What the company does. Epiworld researches, mass-produces and sells 4H-SiC homoepitaxial wafers. An epitaxial wafer is a polished SiC substrate on which a precisely doped single-crystal SiC layer, or a stack of layers, is grown by chemical vapour deposition. Device makers build the active regions of SiC MOSFETs, Schottky barrier diodes and modules in this layer. The thickness, doping uniformity and defect density of the epitaxy largely determine device voltage rating, yield and reliability. The prospectus estimates that epitaxy accounts for about 25% of the value of the SiC power-device chain.
The company's own description. The 2025 annual report describes Epiworld as a global leader and innovator in SiC epitaxy that develops, mass-produces and sells SiC epitaxial wafers for SiC semiconductor device manufacturing. Its products are mainly 4-, 6- and 8-inch wafers. They serve electric vehicles, charging infrastructure, renewable energy and energy storage, with AI computing and data centres, smart grids, home appliances and eVTOL named as emerging applications.
Business and revenue model. Revenue comes from three reporting categories:
Turnkey service (epitaxial wafer sales): Epiworld buys the SiC substrate and other inputs, grows the epitaxy and sells the finished wafer. This is a product-sale model and was 90.9% of FY2025 revenue.
Consign service (epitaxy foundry): The customer supplies its own substrate. Epiworld grows the epitaxial layer and charges for processing plus auxiliary materials. This service-fee model carries a higher gross margin, because substrate cost is excluded from revenue and cost, but it shrank to 3.6% of FY2025 revenue.
Others: Mainly ancillary product and material sales, 5.5% of FY2025 revenue.
The company has no subscription or licensing revenue. The mix has moved steadily from foundry to turnkey sales: turnkey was 63.0% of revenue in 2022, 86.2% in 2024 and 90.9% in 2025, while consign fell from 35.5% in 2022 to 12.4% in 2024 and 3.6% in 2025. This lifts reported revenue per wafer, because the substrate is passed through, but compresses percentage gross margin and exposes the company to substrate-price swings.
Value-chain position. In the SiC power chain, Epiworld sits between substrate growers (crystal growth and wafering) and device makers (design, front-end fabrication, packaging and test). Its principal supplier inputs are SiC substrates, process gases and CVD epitaxial reactors. Substrate supply is concentrated: the largest supplier accounted for about 25.3% of FY2025 purchases and the top five for about 60.2%.
Customer types. Customers are SiC power-device makers: integrated device manufacturers (IDMs) in Europe, the US and Japan, Chinese IDMs and fabless-plus-foundry players, and specialty-process foundries. Over the 41 months from 2022 to May 2025 the company served 123 customers and delivered more than 500,000 epitaxial wafers. Concentration is high: in FY2025 the largest customer contributed about 35.0% of revenue and the top five about 60.1%. Companies buying 8-inch epitaxy rose from 15 at end-2024 to more than 28 at end-2025 and 35 by the 2026 interim report date. In H1 2026 the company added six new customers, including a European automotive-parts maker and a leading Chinese specialty-process foundry.
End-markets. Electric vehicles were the largest end-market for SiC power devices, at about 74% of 2024 device demand according to CIC. Other markets are on-board and off-board charging, solar inverters, energy storage, industrial power, rail traction and smart grid. From late 2025, power-supply units for AI data centres (high-voltage DC architectures and server PSUs) became the fastest-growing source of demand. Management attributes the H1 2026 revenue surge mainly to AI data-centre orders.
Independent characterisation. Epiworld is essentially a merchant epitaxy specialist with scale. Most large Western SiC device makers (Wolfspeed, Infineon, STMicroelectronics, onsemi, Rohm) run in-house epitaxy, but they use merchant suppliers for capacity overflow, second-sourcing and new wafer diameters. Epiworld's position as the largest merchant source, with qualified 8-inch capacity, makes it a swing supplier to those IDMs. Its economics are therefore cyclical. When device makers have spare internal capacity, as in 2024–2025, merchant volumes and prices fall first and foundry work disappears fastest. When demand inflects, as in 2026, the merchant supplier sees outsized volume gains. The company's moat rests on process know-how (thick, multilayer and trench-refill epitaxy), qualification with tier-one automotive IDMs, standard-setting credibility and first-mover position in 8- and 12-inch epitaxy.
Strategy
Stated strategic themes (FY2025 annual report and 2026 interim report):
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Size leadership. Keep first-mover status in 8-inch merchant epitaxy, raise the 8-inch share of sales, and industrialise 12-inch epitaxy ahead of competitors.
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Technology depth. R&D priorities are ultra-thick epitaxy for high-voltage devices, trench-refill epitaxy for next-generation device structures, and 12-inch large-diameter products. The company also continues leadership in SEMI standards.
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Capacity expansion. Monthly capacity rose from 50,000+ wafers (December 2025) to 60,000+ (June 2026), with about 70,000 targeted by December 2026. IPO-funded equipment orders exceeded 40% of the planned total by mid-2026.
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Globalisation. Build an overseas manufacturing base in Penang, Malaysia, at the invitation of several international customers, and deepen overseas customer relationships with flexible customised solutions.
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New applications. Exploit SiC demand from AI data-centre power architectures, energy storage and grid, alongside EVs.
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Cost and efficiency. Use scale to spread fixed costs, control substrate and material costs, and improve yield. These levers drove the 9.6-point gross-margin gain in H1 2026.
Initiatives in the past 24 months
Hong Kong IPO: Date: Mar 2026; Detail: HK$1.56 billion net proceeds to fund capacity, R&D and working capital
12-inch SiC epitaxial wafer launch: Date: Dec 2025; Detail: First 12-inch launch globally; small-batch orders in H1 2026
Penang 8-inch base: Date: Subsidiary Jun 2025; construction Aug 2026; Detail: 400,000 wafers a year; trial production H2 2027; ten-year tax holiday
Xiamen capacity expansion: Date: 2026; Detail: +20% capacity in six months; target about 70,000 wafers/month by end-2026
R&D centre: Date: 2026–2030; Detail: HK$156.0 million of IPO proceeds
H-share full circulation: Date: Applied Jul 2026; Detail: Conversion of up to about 307 million unlisted shares into H shares, subject to CSRC and HKEX
Share repurchase programme: Date: Nov 2026; Detail: Up to 10% of H shares (11.89 million shares) and up to HK$1.78 billion
Accounting-standard change: Date: Proposed Nov 2026; Detail: Adopt PRC Accounting Standards for Business Enterprises; appoint an auditor (EGM 19 November 2026)
ESG programme: Date: Apr 2026; Detail: First ESG report; per-wafer emissions-intensity target for 2030
Use of IPO net proceeds (HK$1,559.5 million, to be fully used by 2030)
Expand SiC epitaxial wafer capacity, total: Share of proceeds (%): 71; Amount (HK$ million): 1107.2
— Procure and upgrade equipment and machinery: Share of proceeds (%): 50; Amount (HK$ million): 779.8
— Complete and improve existing production base: Share of proceeds (%): 15; Amount (HK$ million): 233.9
— Recruit production personnel: Share of proceeds (%): 6; Amount (HK$ million): 93.6
R&D of SiC epitaxial wafers, total: Share of proceeds (%): 19; Amount (HK$ million): 296.3
— Technology and R&D centre: Share of proceeds (%): 10; Amount (HK$ million): 156.0
— R&D materials and development expenses: Share of proceeds (%): 7; Amount (HK$ million): 109.2
— Recruit R&D staff: Share of proceeds (%): 2; Amount (HK$ million): 31.2
Working capital and general corporate purposes: Share of proceeds (%): 10; Amount (HK$ million): 156.0
Medium-term targets. Management has not published multi-year revenue or margin targets. The only quantitative guidance is the FY2026 profit alert (revenue RMB1,607–1,760 million; profit RMB108–158 million; adjusted profit RMB281–331 million), plus the capacity roadmap: about 70,000 wafers/month by end-2026 in Xiamen and 400,000 wafers a year from Penang from H2 2027.
Products & Services
All products sit in the single SiC epitaxy segment.
Flagship positioning: 8-inch volume supply (ahead of all merchant peers), 12-inch first launch, and the first SEMI SiC epitaxy standard.
Product Portfolio
| Product / service | Description and key capabilities | Target customer | Launch / status | Pricing model |
|---|---|---|---|---|
4-inch (100 mm) 4H-SiC epitaxial wafer | N-type homoepitaxy on 4-inch substrates; legacy diameter for R&D lines, smaller IDMs and specialty devices | Universities, research fabs, niche diode makers | China's first commercial volume supplier; mature | Per-wafer (turnkey) or processing fee (consign) |
6-inch (150 mm) 4H-SiC epitaxial wafer | Core volume product, over 95% of 2024 units. Single and multilayer structures for 650 V–3,300 V+ MOSFETs and SBDs | Automotive and industrial SiC IDMs and foundries worldwide | Mature; still the majority of 2025 sales | Per-wafer. Industry 6-inch epitaxial wafer ASP was about RMB7,300 in 2024 versus about RMB11,400 in 2020 (CIC) |
8-inch (200 mm) 4H-SiC epitaxial wafer | First merchant 8-inch epitaxy supplied in volume worldwide; the company cites leading thickness and doping uniformity and defect density | 35 customers by mid-2026, including tier-one IDMs moving to 200 mm fabs | Launched May 2023; 7,466 units in 2024; H1 2026 volume above full-year 2025 | Per-wafer; also offered as consign |
12-inch (300 mm) 4H-SiC epitaxial wafer | Largest SiC epitaxial wafer announced to date. Thickness non-uniformity ≤2.8% and doping non-uniformity ≤2.1%. About 2.3 times the die area of 8-inch and 4.4 times 6-inch, with management claiming more than 40% lower cost per die | Next-generation power fabs and advanced-packaging applications | Launched December 2025; small-batch orders won in H1 2026 | — |
Thick and ultra-thick epitaxy | High-voltage drift layers for 3.3 kV–10 kV+ devices in grid, rail and industrial uses | Smart-grid, traction and industrial device makers | Ongoing R&D and production; "ultra-thick epitaxy" is a 2026 R&D priority | Per-wafer, priced above standard |
Multilayer epitaxy | Several doped layers (buffer, drift, field-stop or recombination layers) in one growth run; a premium-margin product | Automotive MOSFET makers seeking bipolar-degradation suppression | In production | Per-wafer |
High-carrier-lifetime epitaxy | Epitaxy engineered for long minority-carrier lifetime, for bipolar and high-voltage devices | High-voltage device makers | Highlighted in the FY2025 chairman's statement | — |
Trench-refill (backfill) epitaxy | Epitaxial regrowth into etched trenches for super-junction and advanced trench SiC devices | Leading IDMs developing next-generation MOSFETs | 2026 R&D priority | — |
Turnkey service | One-stop supply: substrate procurement, epitaxy, inspection, delivery | All customers | Core model, 90.9% of FY2025 revenue | Per-wafer price including the substrate |
Consign (foundry) service | Epitaxy grown on customer-supplied substrates | IDMs with captive substrate supply | Shrinking, 3.6% of FY2025 revenue | Processing fee plus auxiliary materials |
Customised solutions for overseas customers | Flexible custom specifications, emphasised in the 2026 interim strategy | International IDMs | Ongoing | Contract-based |
“—” = not publicly disclosed.
Financial Narrative
The company reports four full fiscal years (FY2022–FY2025) in its listing documents and annual report, plus unaudited interim results for H1 2026. All figures are IFRS, in RMB million, from the 2025 annual report and the 2026 interim report.
Income statement
Revenue grew at a compound 20.2% a year from FY2022 to FY2025, but the path was a boom-bust: +159% in 2023, then two years of decline. The April 2025 filing gave profit for FY2022–FY2024 of RMB143 million, RMB122 million and RMB166 million. The 2026 prospectus and 2025 annual report give RMB127.5 million, RMB107.5 million and RMB165.1 million, which are used here.
Operating line items (RMB million, 2025 annual report)
H1 2026 versus H1 2025 (unaudited, RMB million)
Commentary.
2022–2023 boom: Revenue rose 2.6 times in 2023 to RMB1,142.5 million. Global EV and charger demand drove SiC device output, and Epiworld added capacity while competitors were still qualifying 6-inch. Gross margin was already falling, from 44.7% to 39.0%, as the mix shifted from foundry to turnkey (substrate pass-through). Profit for the year fell despite higher revenue because of large share-based payment charges from the 2023 equity incentive. This is why adjusted net profit (RMB383.8 million) far exceeds IFRS profit (RMB107.5 million).
2024–2025 bust: Large SiC substrate capacity additions in China in 2023–2024 caused oversupply. 6-inch substrate and epitaxial wafer prices collapsed: the industry ASP for 6-inch epitaxy fell to about RMB7,300 in 2024, and CIC projects RMB4,400 by 2029. IDMs internalised epitaxy work, and consign revenue fell 59% in 2024 and 77% in 2025. Revenue fell 14.7% in 2024 and 21.4% in 2025. The company priced aggressively to defend share, and gross margin dropped to 34.1% and then 24.8% (18.7% for January–May 2025, after a Q1 2025 inventory write-down). Revenue troughed at RMB300.8 million in H1 2025 and recovered to RMB464.5 million in H2 2025 (Q4 2025: RMB230.3 million).
Reliance on other income: "Other income and gains, net", mainly government grants and interest income, was RMB168.4 million in 2024 and RMB166.0 million in 2025. That roughly equals the whole of 2025 operating profit and more. Without it, 2025 operations would have lost about RMB107 million before finance costs. G&A grew 18.5% in 2025 to RMB208.1 million, largely from listing-related costs and share-based compensation. The FY2025 effective tax rate of 65.5% reflects non-deductible share-based payments relative to a small pre-tax base.
2026 inflection: H1 2026 revenue rose 92.0% year on year and 24.3% sequentially, to RMB577.6 million. Gross profit almost tripled and gross margin recovered 9.6 points to 27.8%, helped by fixed-cost absorption, substrate cost control and 8-inch volumes. Profit before tax was RMB62.2 million despite a RMB72.3 million net foreign-exchange loss from the weaker US dollar on dollar-denominated cash and receivables. On 2 November 2026 the board guided FY2026 to:
This implies H2 2026 revenue of RMB1,029–1,182 million, up 122%–155% on H2 2025, and H2 profit of RMB59–109 million. The guidance is based on unaudited management accounts for the ten months to 31 October 2026.
EBITDA is not reported. Depreciation and amortisation are not broken out in the summary disclosures, so EBITDA margin and net debt/EBITDA cannot be computed. IFRS basic EPS for H1 2026 was RMB0.12.
Balance sheet
At 30 June 2026:
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Cash and cash equivalents were RMB2,649.0 million and term deposits RMB569.8 million, a combined RMB3,218.8 million.
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Borrowings were RMB1,028.6 million, all fixed-rate and RMB-denominated, so net cash was about RMB2,190 million.
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Total assets were RMB6,306.3 million and equity RMB4,540.1 million.
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Current assets were RMB4,212.8 million and current liabilities RMB574.2 million, giving net current assets of about RMB3,638.6 million.
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Pledged assets were RMB558.3 million and capital commitments RMB261.4 million.
At end-2025, cash plus term deposits (RMB611.7 million) totalled RMB1,825.7 million against borrowings of RMB886.7 million, a net cash position of about RMB939 million. In 2025, trade and bills receivables rose by RMB227.5 million and inventories by RMB77.6 million. By 30 June 2026, receivables were 58.7% higher and inventories 21.3% higher than at end-2025, which is consistent with the order ramp. Goodwill is nil, as the company has made no acquisitions. Intangible assets are not separately material in the summary disclosures.
Equity grew roughly fivefold from 2022 to 2025, driven by the December 2024 RMB1.03 billion private round and earlier rounds. The H1 2026 jump of RMB1.53 billion reflects the HK$1.56 billion net IPO proceeds.
Cash flow
In FY2025 operating cash flow was a net inflow of RMB123.3 million. After RMB146.1 million of capex, free cash flow was about negative RMB22.8 million. No dividends were paid for 2025, as the board did not recommend a final dividend. There were no buybacks before listing. On-market H-share repurchases began on 3 November 2026 under the general mandate approved at the 22 June 2026 AGM. Cumulative repurchases reached 51,650 H shares by 5 November 2026, and another 77,300 shares were bought for HK$5.93 million on 6 November 2026. The shares are held as treasury shares.
Ratios
ROIC and the cash conversion cycle are not publicly disclosed. Receivable and inventory days cannot be computed reliably from the available summary data. The H1 2026 annualised return on average equity was about 1.3% for the half year, as reported. Returns have been structurally diluted by repeated equity raises ahead of profit growth. Equity per unit of revenue rose from 1.3x in 2022 to 3.9x in 2025, and at H1 2026 equity was about 4.5 times trailing revenue. Restoring double-digit ROE requires the revenue scale-up implied by FY2026 guidance and broker forecasts for 2027–2028.
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Revenue by Segment
| Service type | FY2024 | FY2025 |
|---|---|---|
Turnkey service revenue (CNY Mn) | 839.6 | 695.9 |
Consign service revenue (CNY Mn) | 121.1 | 27.6 |
Others revenue (CNY Mn) | 13.6 | 41.9 |
Total revenue (CNY Mn) | 974.3 | 765.3 |
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View Subscription PlansRevenue by Segment (%) and Segment Margins & Growth (%)
| Metric | FY2024 | FY2025 |
|---|---|---|
Turnkey share of revenue (%) | 86.2 | 90.9 |
Consign share of revenue (%) | 12.4 | 3.6 |
Others share of revenue (%) | 1.4 | 5.5 |
Turnkey YoY growth (%) | — | -17.1 |
Consign YoY growth (%) | -58.7 | -77.2 |
Others YoY growth (%) | — | 207.0 |
Segment Revenue
| Metric | FY2022 | FY2023 | FY2024 |
|---|---|---|---|
Total epitaxial wafers sold, turnkey plus consign (thousand units) | 85.4 | 200.6 | 164.4 |
Operating Metrics (units)
| Metric | FY2023 | FY2024 |
|---|---|---|
8-inch epitaxial wafers sold (units) | 285 | 7,466 |
Income Statement and Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Revenue (CNY Mn) | 440.7 | 1,142.5 | 974.3 | 765.3 |
Gross profit (CNY Mn) | 196.9 | 445.4 | 332.3 | 189.9 |
Profit for the year (CNY Mn) | 127.5 | 107.5 | 165.1 | 11.9 |
Adjusted net profit, non-IFRS (CNY Mn) | 171.9 | 383.8 | 323.5 | 198.4 |
Adjusted EPS, non-IFRS (MYR Bn) | 0.54 | 1.13 | 0.84 | 0.49 |
Dividend per share (MYR Bn) | 0 | 0 | 0 | 0 |
Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Revenue growth YoY (%) | — | 159.2 | -14.7 | -21.4 |
Gross margin (%) | 44.7 | 39.0 | 34.1 | 24.8 |
Net margin (%) | 28.9 | 9.4 | 16.9 | 1.6 |
Adjusted net margin (%) | 39.0 | 33.6 | 33.2 | 25.9 |
Income Statement and Margin Analysis (%)
| Metric | FY2024 | FY2025 |
|---|---|---|
Gross profit (CNY Mn) | 332.3 | 189.9 |
Other income and gains, net (CNY Mn) | 168.4 | 166.0 |
Selling and distribution expenses (CNY Mn) | 5.5 | 10.8 |
General and administrative expenses (CNY Mn) | 175.6 | 208.1 |
Research and development expenses (CNY Mn) | 80.0 | 74.9 |
Impairment loss on financial assets (CNY Mn) | 1.3 | 2.7 |
Operating profit before finance costs (CNY Mn) | 238.3 | 59.4 |
Finance costs (CNY Mn) | 30.2 | 24.9 |
Profit before tax (CNY Mn) | 208.2 | 34.5 |
Income tax expense (CNY Mn) | 43.1 | 22.6 |
Profit for the year (CNY Mn) | 165.1 | 11.9 |
Operating margin (%) | 24.5 | 7.8 |
Operating profit excluding other income and gains (CNY Mn) | 70.0 | -106.6 |
Effective tax rate (%) | 20.7 | 65.5 |
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View Subscription PlansIncome Statement and Margin Analysis (%) (Half-Yearly)
| Metric | H1 2025 | H1 2026 |
|---|---|---|
Revenue (CNY Mn) | 300.8 | 577.6 |
Cost of sales (CNY Mn) | 246.0 | 417.0 |
Gross profit (CNY Mn) | 54.7 | 160.7 |
Gross margin (%) | 18.2 | 27.8 |
R&D expenses (CNY Mn) | 40.7 | 53.5 |
General and administrative expenses (CNY Mn) | 105.9 | 102.8 |
Selling and distribution expenses (CNY Mn) | 5.1 | 5.7 |
Other income and gains, net (CNY Mn) | 110.1 | 77.2 |
Finance costs (CNY Mn) | 6.8 | 5.0 |
Profit before tax (CNY Mn) | 5.9 | 62.2 |
Income tax (CNY Mn) | 7.9 | 13.6 |
Profit for the period (CNY Mn) | -2.0 | 48.6 |
Adjusted net profit (CNY Mn) | 97.0 | 139.1 |
Adjusted EPS (MYR Bn) | 0.24 | 0.34 |
Income Statement
| Metric | FY2025 actual | FY2026 guidance, low | FY2026 guidance, high |
|---|---|---|---|
Revenue (CNY Mn) | 765.3 | 1,607 | 1,760 |
Profit for the year (CNY Mn) | 11.9 | 108 | 158 |
Adjusted net profit (CNY Mn) | 198.4 | 281 | 331 |
Balance Sheet and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Total assets (CNY Mn) | 1,453.6 | 3,073.6 | 4,502.9 | 4,523.9 |
Total liabilities (CNY Mn) | 870.1 | 1,609.4 | 1,689.5 | 1,514.2 |
Total equity (CNY Mn) | 583.5 | 1,464.2 | 2,813.5 | 3,009.7 |
Liabilities to assets (%) | 59.9 | 52.4 | 37.5 | 33.5 |
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View Subscription PlansKey Financials
| Metric | FY2023 | FY2024 | FY2025 | H1 2026 |
|---|---|---|---|---|
Cash and cash equivalents (CNY Mn) | 549 | 2,030 | 1,214.0 | 2,649.0 |
Balance Sheet and Financial Ratios (x)
| Metric | FY2024 | FY2025 | H1 2026 |
|---|---|---|---|
Loans and borrowings (CNY Mn) | 1,112.1 | 886.7 | 1,028.6 |
Current ratio (x) | 4.0 | 5.3 | 7.3 |
Quick ratio (x) | 3.6 | 4.7 | 6.7 |
Cash Flow
| Metric | FY2024 | FY2025 |
|---|---|---|
Capital expenditure (CNY Mn) | 206.6 | 146.1 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
ROE on year-end equity (%) | 21.9 | 7.3 | 5.9 | 0.4 |
ROA on year-end assets (%) | 8.8 | 3.5 | 3.7 | 0.3 |
Asset turnover, revenue / year-end assets (x) | 0.30 | 0.37 | 0.22 | 0.17 |
Margin Analysis (%) and Financial Ratios (x)
| Metric | FY2024 | FY2025 |
|---|---|---|
Borrowings to equity (%) | 39.5 | 29.5 |
Interest coverage, operating profit / finance costs (x) | 7.9 | 2.4 |
Revenue by Region
| Region | FY2024 | FY2025 |
|---|---|---|
Asia total (CNY Mn) | 672.4 | 679.0 |
of which Greater China (CNY Mn) | 207.7 | 392.5 |
of which Asia excluding Greater China (CNY Mn) | 464.8 | 286.6 |
Europe (CNY Mn) | 268.9 | 69.6 |
North America (CNY Mn) | 32.9 | 16.7 |
Total (CNY Mn) | 974.3 | 765.3 |
Region share of revenue (%)
| Region share of revenue (%) | FY2024 | FY2025 |
|---|---|---|
Asia total (%) | 69.0 | 88.7 |
Greater China (%) | 21.3 | 51.3 |
Asia excluding Greater China (%) | 47.7 | 37.4 |
Europe (%) | 27.6 | 9.1 |
North America (%) | 3.4 | 2.2 |
Region YoY growth | FY2025 | — |
Greater China (%) | 89.0 | — |
Asia excluding Greater China (%) | -38.3 | — |
Europe (%) | -74.1 | — |
North America (%) | -49.2 | — |
Total (%) | -21.4 | — |
Share Price & Returns
| Reference point | Price (HKD) |
|---|---|
IPO offer price (30 March 2026) | 76.26 |
First-day close (30 March 2026) | 103.00 |
52-week high (May 2026) | 141.00 |
Close, 1 September 2026 | 106.10 |
52-week low (October 2026) | 70.55 |
Close, 3 November 2026 | 75.55 |
Repurchase price range, 6 November 2026 | 73.4–78.0 |
Valuation Multiples
| Multiple | Basis | Approximate value (x) |
|---|---|---|
P/E, FY2025 actual | Profit RMB11.9 million | Above 2,000 (not meaningful) |
P/E, FY2026 guidance midpoint | Profit RMB133 million | 222 |
P/E on adjusted profit, FY2026 guidance midpoint | RMB306 million | 97 |
EV/Sales, FY2026 guidance midpoint | EV about RMB27.4 billion; revenue RMB1,684 million | 16.3 |
P/B | Equity RMB4,540 million at 30 June 2026 | 6.5 |
Analyst Ratings & Targets
| Broker | Date | Rating | Target price (HKD) | Key forecasts |
|---|---|---|---|---|
Industrial Securities | Sep 2026 | Outperform | 149.00 | Revenue nearly doubles on 8-inch and AI data centres |
Zhongtai International | 24 Sep 2026 | Buy | 166.30 | Revenue +77.5% (2026) and +107.2% (2027); gross margin 30.0% and 32.5%; valued at 22x 2027 P/S |
Guotai Haitong | Nov 2026 | Outperform | 127.26 | Revenue RMB1.33 / 2.59 / 4.36 billion and profit RMB0.12 / 0.40 / 0.84 billion for 2026–2028; valued at 115x 2027 P/E |
Debt Maturity Profile
| Maturity bucket | Amount (CNY Mn) |
|---|---|
Within 1 year | 154.0 |
1–2 years | 134.6 |
2–5 years | 505.2 |
Over 5 years | 234.8 |
Total | 1,028.6 |
Analyst Conclusions
Management guidance. For FY2026: revenue of RMB1,607–1,760 million (+110% to +130%), profit of RMB108–158 million and adjusted profit of RMB281–331 million. Capacity is to reach about 70,000 wafers/month by end-2026, and Penang trial production is due in H2 2027.
Consensus. Brokers expect revenue to roughly double again in 2027 (Zhongtai: +107%; Guotai Haitong: RMB2.59 billion) and gross margins to rise into the low 30s. Guotai Haitong forecasts profit of RMB404 million in 2027 and RMB839 million in 2028.
Bull case
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The AI data-centre power cycle is structural. H1 2026 revenue rose 92%, and FY2026 guidance at the midpoint implies 120% growth, both well above broker forecasts. This suggests demand is outrunning sell-side models.
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Operating leverage is large. Gross margin recovered 9.6 points in one half-year. Fixed costs (G&A of about RMB208 million and depreciation) are spread over a doubling revenue base, so profit can grow far faster than revenue, as the 2027–2028 forecasts imply.
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Size leadership compounds. Epiworld has 35 8-inch customers and the only 12-inch epitaxy orders, and its Penang plant offers Western IDMs a non-China supply node at a time when they are cutting their own capex.
Bear case
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Valuation already prices in success. At about 97x FY2026 adjusted earnings, 222x IFRS earnings and 16x EV/sales, there is little room for an order slowdown. Merchant epitaxy volumes have historically fallen first when IDMs refill internal capacity.
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Earnings quality is weak. FY2025 profit existed only because of RMB166 million of other income. Share-based payments are large, and the gap between adjusted and IFRS profit was RMB186.5 million in FY2025.
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Concentration and governance. One customer was 35% of FY2025 revenue, and a single US$95.8 million order is lumpy. The chairman now also co-runs operations, and conversion of about 307 million unlisted shares into H shares could create a supply overhang.
Key catalysts and monitorables (next 12 months):
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Outcome of the 19 November 2026 EGM: adoption of PRC Accounting Standards and auditor appointment.
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Pace and size of H-share repurchases against the HK$1.78 billion ceiling.
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CSRC and HKEX approval and timing of H-share full circulation.
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FY2026 annual results by end-March 2027: confirmation of guidance, H2 gross margin above 30%, and the contribution from other income.
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Follow-on orders from the international customer after the December 2026 delivery deadline.
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Penang construction milestones: topping-out and cleanroom by Q2–Q3 2027.
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12-inch order progress beyond small batches.
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6- and 8-inch epitaxy pricing, and substrate price stabilisation signalled by SICC.
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Expiry of the 18-month cornerstone lock-up in late September 2027.
Analyst verdict. Epiworld International enters late 2026 as the clearest listed way to own the merchant SiC epitaxy recovery. It is the global volume leader, holding nearly a third of the market, with the broadest 8-inch customer base and the only 12-inch epitaxy orders. After a punishing 2024–2025 in which revenue fell by a third from its peak and gross margin halved, operating data have turned decisively. H1 2026 revenue rose 92%, gross margin regained 27.8%, profit swung positive, and preliminary FY2026 guidance of RMB1.61–1.76 billion revenue sits well above every published broker forecast. A net cash balance of about RMB2.2 billion funds the Xiamen and Penang expansions without new equity, and the HK$1.78 billion buyback signals management confidence after the shares fell back to their IPO price.
The verdict has to be tempered by earnings quality and concentration. Even on FY2026 guidance, IFRS profit of about RMB133 million is a thin 8% net margin on a market value near RMB30 billion. Profits have depended heavily on government-linked other income and are depressed by share-based pay. A single customer providing a third of revenue and a single US$96 million order show how dependent results are on a few IDMs' outsourcing decisions, which reversed sharply in 2025. Founder control is strong, and the chairman's move into a co-general-manager role weakens governance checks just as the shareholder base is broadening.
On balance, the company's strategic position is the strongest in its niche, and 2026 has validated the AI data-centre demand thesis. The investment case now depends on sustaining gross margins above 30% and repeat international orders through 2027, rather than on market share, which is already secure. Investors should treat the shares as a high-beta call on SiC outsourcing intensity. Valuation support should come from 2027–2028 earnings delivery rather than from current multiples.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Role | Age (2025 AR) | Tenure | Education | Prior roles / notes |
|---|---|---|---|---|---|
Dr. Zhao Jianhui (趙建輝) | Founder, Chairman, Executive Director; co-general manager from July 2026 | 66 | Director since 2011; chairman 2011–2012 and since 2014 | BSc Physics, Xiamen University (1982); PhD Electrical & Computer Engineering, Carnegie Mellon University (1988) | Decades at a US university (Rutgers); first IEEE Fellow elected for SiC research and commercialisation; chair professor at Xiamen University since December 2021; US citizen |
Ms. Pan Menghan (潘夢菡) | Executive Director | 63 | Founding-era team | MS Electrical Engineering, New Jersey Institute of Technology (1993) | Long-time management member |
Ms. Xie Jieping (謝潔平) | Non-executive Director | 53 | Current | BEcon (1993) and MBA (2006), Xiamen University | Represents an investor shareholder |
Ms. Guo Danxia (郭丹霞) | Non-executive Director | — | Appointed 22 June 2026 | — | Appointed at the 2026 AGM |
Dr. Kang Junyong (康俊勇) | Independent Non-executive Director | 66 | Since listing preparation | Doctorate in Science (1993) | Professor of Physics, Xiamen University, since 1999 |
Dr. Liao Yi (廖逸) | Independent Non-executive Director | 41 | Since listing preparation | Doctorate in Management, University of Hong Kong (2013) | Associate Professor, Hang Seng University of Hong Kong |
Dr. Su Xinlong (蘇新龍) | Independent Non-executive Director | 61 | Since listing preparation | Doctorate in Management, Wuhan University of Technology (2008) | Professor of Accounting, Xiamen University |
Board of Directors — Mr. Li Kaixi
| Name | Role | Notes |
|---|---|---|
Mr. Li Kaixi (李凱希) | Chairman of the Supervisory Committee (from 22 June 2026); employee-representative supervisor since May 2023 | Age 33; joined 2014 as process engineer; product lifecycle manager; BSc, Nanjing University of Information Science & Technology |
Ms. Ni Yu (倪昱) | Supervisor (from 22 June 2026) | — |
Mr. Qian Weining (錢衛寧) | Supervisor since May 2023 | Age 38; master's degree, South China Normal University |
Executive Leadership Team
| Name | Title | Age | In role since | Education |
|---|---|---|---|---|
Dr. Feng Gan (馮淦) | General Manager | 50 | July 2016 | PhD Materials Science / Chemistry, Institute of Semiconductors, Chinese Academy of Sciences (2003) |
Dr. Zhao Jianhui | Co-General Manager (in addition to chairman) | 66 | July 2026 | As above |
Mr. Peng Xinghua (彭興華) | Financial Controller (head of finance) | 42 | July 2020 | BMgt, Changchun Institute of Technology (2006) |
Dr. Hong Tu (洪圖) | Board Secretary | 40 | April 2023 | PhD Finance, Xiamen University (2013); previously about ten years at China Minsheng Bank |
Dr. Sun Yongqiang (孫永強) | Deputy General Manager | 40 | December 2019 | PhD Microelectronics & Solid-State Electronics, Xiamen University (2019) |
Ms. Wong Wai Yee, Ella (黃慧兒) | Company Secretary (Hong Kong) and Authorised Representative | — | Since listing | — |
Major Shareholders
| Shareholder | Nature | Unlisted shares | H shares | % of total share capital |
|---|---|---|---|---|
Dr. Zhao Jianhui | Beneficial owner; founder and chairman | 86,814,160 | 29,746,239 | 27.39 |
Xiamen Xike Zhongheng Investment Partnership (controlled by Mr. Su Ping) | Beneficial owner | 42,562,018 | 14,187,340 | 13.33 |
Mr. Li Qinghua (Dr. Zhao's cousin), with spousal interest of Ms. Xu Xiyun | Beneficial owner and spouse | 32,642,862 | 10,880,955 | 10.23 |
Xiamen Advanced Intelligent Manufacturing Industry Investment Ltd (IPO cornerstone) | Beneficial owner | 0 | 10,058,500 | 2.36 |
Competitive Landscape
Key Competitors
| Competitor | Type | Overlap with Epiworld | Latest disclosed financials | Positioning |
|---|---|---|---|---|
Guangdong Tianyu Semiconductor (2658.HK) | Merchant SiC epitaxy, China | Direct (6/8-inch epitaxy) | FY2025 revenue RMB709.2 million; gross margin 18.8%; loss RMB62.2 million | China's largest maker of epitaxy grown on its own purchased substrates; 6.7% global share by 2024 revenue; capacity of about 420,000 wafers a year, planned 800,000 |
Resonac (formerly Showa Denko) | Merchant SiC epitaxy and substrates, Japan | Direct; long-time merchant leader supplying Japanese and European IDMs | Segment figures not separately disclosed | Strong automotive qualification; Japanese supply-chain preference |
Wolfspeed (WOLF) | Vertically integrated substrate, epitaxy and devices, US | Indirect (captive epitaxy) and as a substrate supplier | Q4 FY2026 (June quarter) revenue about US$150 million; GAAP gross margin −25% | Emerged from Chapter 11 on 29 September 2025; pivoting to devices, AI data centres and 300 mm |
SICC / Shandong Tianyue (688234.SH; 2631.HK) | Substrates | Supplier and potential forward integration | FY2025 revenue RMB1,465 million (−17.2%); net loss RMB208 million; gross margin 13.1% | World's top SiC substrate supplier by share in 2025 (Fuji Keizai); 8-inch substrate leader |
Coherent | Substrates and epitaxy, US | Direct in merchant epitaxy | Segment figures not separately disclosed | Major non-China substrate source |
SK siltron (SK siltron css) | Substrates and epitaxy, Korea/US | Direct | — | Korean and US supply chains |
Infineon | IDM with in-house epitaxy | Indirect (customer and competitor) | Not applicable | Buys merchant epitaxy for overflow and second sourcing |
STMicroelectronics | IDM with in-house epitaxy and substrates (Catania; Chongqing JV with Sanan) | Indirect | Not applicable | Vertically integrating |
onsemi | IDM with in-house substrates and epitaxy | Indirect | Not applicable | Vertically integrated; reduces merchant demand |
Sanan Optoelectronics (Hunan Sanan) | Vertically integrated SiC in China | Indirect and competitor | Not applicable | Domestic integrated alternative |
Hebei Puxing Electronic and other Chinese epitaxy specialists | Merchant epitaxy | Direct | — | Price-competitive domestic suppliers |
“—” = not publicly disclosed.
Competitor Detail
| Supplier | Share basis | 2024 share (%) |
|---|---|---|
Epiworld | Global SiC epitaxy, wafer volume | 31.6 |
Second-largest supplier (unnamed) | Global SiC epitaxy, wafer volume | 19.4 |
Tianyu Semiconductor | Global epitaxy, volume (Frost & Sullivan basis) | 7.8 |
Peer Comparison FY2026
| Metric | Epiworld | Tianyu Semiconductor | SICC |
|---|---|---|---|
Revenue (CNY Mn) | 765.3 | 709.2 | 1,465 |
Revenue growth (%) | -21.4 | 36.5 | -17.2 |
Gross margin (%) | 24.8 | 18.8 | 13.1 |
Net margin (%) | 1.6 | -8.8 | -14.2 |
