[CJ Textile & Apparel] Recommend # Xingye Technology: The indium phosphide newcomer with the biggest expectation gap

English summary

Current status of indium phosphide business: ~20 equipment units, 8 in mass production, 2 and 3-inch substrates have achieved stable mass production supply, 4-inch has mass supply capability, H1 deliverable orders in millions, H2 orders growing rapidly, expected to achieve profitability in full year 26. Where is the expectation gap for Xingye as a new indium phosphide player? # Top-tier capacity planning: Phase I capacity 100,000 wafers/year (effective output), Phase II Jinjiang plans 500,000 wafers, with full production reaching industry leader scale. In 27, Jinjiang production is expected to have an effective output of 200,000-300,000 wafers. # Fast advancement pace: Acquisition framework released in June, Phase I expansion in environmental assessment process in July, expected to start capacity ramp-up in 26Q4, faster than the previously expected end of 27Q1.