--- title: "A-share subscription | HENGHUI Technology starts subscription, ranking second in global market share in the flexible lead frame industry" type: "News" locale: "en" url: "https://longbridge.com/en/news/243963194.md" description: "HENGHUI Technology started its subscription on June 11, with an issue price of 12.80 yuan per share, a subscription limit of 14,000 shares, and a price-to-earnings ratio of 17.76 times. The company focuses on the research, development, production, and sales of chip packaging materials, with main businesses including smart cards, etched lead frames, and Internet of Things eSIM chip testing. HENGHUI Technology ranks second in the global market share of flexible lead frames, demonstrating strong market competitiveness, and has established long-term cooperative relationships with several well-known chip design and smart card manufacturers" datetime: "2025-06-10T22:47:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/243963194.md) - [en](https://longbridge.com/en/news/243963194.md) - [zh-HK](https://longbridge.com/zh-HK/news/243963194.md) generator: "portal-rs" --- # A-share subscription | HENGHUI Technology starts subscription, ranking second in global market share in the flexible lead frame industry According to the Zhitong Finance APP, on June 11, HENGHUI Technology (301678.SZ) opened for subscription, with an issue price of 12.80 yuan per share, a subscription limit of 14,000 shares, and a price-to-earnings ratio of 17.76 times. It is listed on the Shenzhen Stock Exchange, with Founder Securities as its sponsor. According to the prospectus, HENGHUI Technology is an integrated circuit company that integrates the research and development, production, sales, and packaging testing services of chip packaging materials. The company's main businesses include smart card business, etched lead frame business, and IoT eSIM chip packaging and testing business. The smart card business is the company's traditional core business, mainly involving the research and development, production, and sales of flexible lead frame products, which are key packaging materials for smart card chips, as well as providing smart card module products or module packaging and testing services to customers primarily relying on self-produced flexible lead frames. During the reporting period, the company's main revenue and profit sources came from the smart card business. In the field of smart card business, the company adopts an integrated operating model, using self-produced key packaging materials, flexible lead frames, for smart card module packaging. This not only ensures a low-cost and high-quality supply of dedicated packaging materials, enhancing product delivery capabilities, but also improves the profit margin of the smart card module packaging business, thus possessing strong market competitiveness. During the reporting period, the company established long-term cooperative relationships with several well-known security chip design manufacturers, including Unisoc (002049.SZ), China Electronics Huada Technology Co., Ltd., Fudan Microelectronics (688385.SH), and Datang Microelectronics, as well as well-known smart card manufacturers at home and abroad such as Hengbao Co., Ltd. (002104.SZ), Chutianlong (003040.SZ), Dongxin Pingan (002017.SZ), and IDEMIA. Its products are widely used in smart card fields such as communications, finance, transportation, and identity recognition. Regarding industry competition, the entry barrier for the flexible lead frame industry is relatively high. Currently, there are mainly three manufacturers globally capable of stable mass supply of flexible lead frames, including France's Linxens, the company, and South Korea's LG Innotek, with the company ranking second in market share. In addition to providing flexible lead frame products to customers, the company currently has an annual production capacity of approximately 2.374 billion smart card modules, making it one of the major smart card module suppliers in China. The etched lead frame business and IoT eSIM chip packaging and testing business are two new businesses that the company expanded in 2019. The company has invested significant human and material resources in this field over the years to tackle technical challenges and has successfully mastered several core technologies, achieving mass production and sales of products. These two businesses have gradually become new revenue growth points for the company. The main suppliers of etched lead frames globally are concentrated in Japan, South Korea, Hong Kong, and Taiwan, with a low domestic self-sufficiency rate. Currently, the main manufacturers capable of mass supply domestically include Kangqiang Electronics (002119.SZ), the company, and Tianshui Huayang Electronic Technology Co., Ltd. After rapid development in the past two years, the company has accumulated a group of high-quality semiconductor packaging manufacturer clients, including Huada Semiconductor, Yongxi Electronics, and ASE, laying a solid foundation for future business development eSIM is one of the key technologies for the development of the Internet of Things (IoT) industry and is also a trend for the future. The company has leveraged its advantages in the traditional SIM card packaging market to establish a specialized and distinctive factory workshop for IoT eSIM chip packaging and testing. After more than two years of development, this business has initially taken shape and is currently in the business expansion stage, with downstream customers mainly including chip design manufacturers such as Unisoc and IoT manufacturers such as China Mobile IoT. In terms of finance, for the fiscal years 2021, 2022, 2023, and the first half of 2024, HENGHUI Technology achieved operating revenues of approximately RMB 548 million, RMB 684 million, RMB 767 million, and RMB 414 million, respectively; during the same periods, net profits were approximately RMB 101 million, RMB 111 million, RMB 153 million, and RMB 101 million, respectively. ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250611/1749595001107897.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ### Related Stocks - [301678.CN](https://longbridge.com/en/quote/301678.CN.md) - [CP00062.US](https://longbridge.com/en/quote/CP00062.US.md) - [002185.CN](https://longbridge.com/en/quote/002185.CN.md) - [601901.CN](https://longbridge.com/en/quote/601901.CN.md) - [002017.CN](https://longbridge.com/en/quote/002017.CN.md) - [002049.CN](https://longbridge.com/en/quote/002049.CN.md) - [002104.CN](https://longbridge.com/en/quote/002104.CN.md) - [002119.CN](https://longbridge.com/en/quote/002119.CN.md) - [003040.CN](https://longbridge.com/en/quote/003040.CN.md) ## Related News & Research - [Chery launches Fulwin T7 electric SUV with 600 km range from under $15,000](https://longbridge.com/en/news/297116417.md) - [Fed’s preferred inflation gauge shows core prices rose 3.3% annually in July](https://longbridge.com/en/news/297047372.md) - [Nvidia Revenue Set to Increase 18X in 4 Years; Analyst Says 'Never in History' Has a Company Grown This Fast](https://longbridge.com/en/news/297126014.md) - [Zhongji Innolight Fully Exercises Over-Allotment Option After Hong Kong IPO](https://longbridge.com/en/news/297095479.md) - [Broadcom Stock (AVGO) Remains Wall Street's Pick Despite Google's Marvell Deal – Here's Why](https://longbridge.com/en/news/297093302.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**