Behind the 20CM Limit-Up After Resumption: Galaxy Microelectronics Plans to Acquire Hengtaike to Fill the Gap in Medium- and High-Voltage Power Semiconductors
Galaxy Microelectronics (688689.SH), after being suspended for more than half a month, disclosed its restructuring plan and resumed trading. The company intends to issue shares to acquire 100% equity of Hengtaike Semiconductor held by three shareholders — Shanghai Zhineng Hengxin Industrial Electronics Co., Ltd., Gongqingcheng Mingnuo Investment Partnership (Limited Partnership), and Tianmu Yulin (Shanghai) Technology Co., Ltd. — and simultaneously raise matching funds.
On the day of resumption, the stock hit a 20CM limit-up, closing at 55.88 yuan per share, with total market capitalization rising to approximately 7.2 billion yuan. The turnover rate was only 1.21%, and the limit-up pending orders reached 291 million shares, 185 times the day's trading volume, with corresponding funds exceeding 1.5 billion yuan.
Amid the high boom cycle in the power semiconductor industry, the market has given a positive outlook to Galaxy Microelectronics' move to enter the high-end medium- and high-voltage power semiconductor track through this acquisition. However, the acquisition still faces multiple controversies: insider trading suspicions triggered by abnormal stock price surge before suspension, the undetermined valuation of the target, and the potential large goodwill pressure in the future, all of which test the prospects of integration.
Integration Challenges: Fine Management of Product Lines and Customers, Stability and Incentive Constraints of Technical Team
Jiang Han, senior researcher at the Pangu Think Tank, said the biggest integration challenge lies in the fine management of product lines and customers. After incorporating more than 700 products from Hengtaike, the total number will exceed 1,000, sharply increasing the complexity of customer management and capacity allocation. Secondly, core technology is highly tied to the R&D team. Without reasonable equity incentives and non-compete clauses, the company may face technology loss and goodwill impairment risks.
M&A Logic: Crossing Medium- and High-Voltage Power Semiconductor Technology Barriers Through Peer Complementarity and Synergy
Compared to some listed companies' cross-industry mergers lacking synergy with their main business, Galaxy Microelectronics' acquisition of Hengtaike is an industrial merger that complements peers' weaknesses and emphasizes synergy. After the transaction, the company is expected to fill the technical gaps in medium- and high-voltage power semiconductors, fill the gaps in high-end products, and improve the overall product matrix.
Galaxy Microelectronics has long relied on small-signal devices and low-voltage power devices as its core performance base, but has lagged in high-end areas such as high-voltage MOSFETs, IGBTs, and silicon carbide (SiC). The technical breakthroughs disclosed in the books have not yet been translated into actual performance, hindering the company's penetration into high-end markets such as automotive electronics.
The industry's top capacity continues to release, and the window for catch-up is narrowing. International giants have built a closed-loop technology chain covering materials, processes, and manufacturing, while domestic IDM leaders have also achieved mass production of 8-inch high-voltage MOSFETs and IGBTs.
In this context, Hengtaike is seen as a key lever for Galaxy Microelectronics to overcome technical bottlenecks. According to the restructuring plan, Hengtaike is a national-level specialized and new "Little Giant" enterprise engaged in the research, development, and sales of power semiconductor products. Its products are used in power supplies, lithium battery protection, brushless motors, new energy, and E-car (OBC, electronic control) scenarios. Hengtaike possesses industry-leading medium-voltage SGT MOSFET technology and high-voltage SuperJunction technology. Among them, its medium- and high-voltage SGT MOSFETs in the 150V-200V range have reached the domestic top level and can be pin-to-pin compatible with and replace Infineon's medium-voltage series products.
This transaction is an industry chain integration of "Fabless design + IDM manufacturing": Galaxy Microelectronics has mature chip manufacturing capacity but lacks high-end design capabilities; Hengtaike has top-notch design technology but no own production line, having long been constrained by foundry capacity and cost fluctuations. Whether the synergy can be realized depends on the actual implementation of subsequent integration.
Valuation and Funding Pressure: Final Price Not Disclosed, Valuation Methodology and Goodwill Risk of Light-Asset Design Companies
Galaxy Microelectronics flagged risks in the plan: Hengtaike will face competitive pressure from both international giants and domestic emerging companies; if the global macroeconomy weakens or end-demand growth slows, or the semiconductor industry undergoes a deep, sustained downturn, it will affect Hengtaike's operating performance.
A more fundamental uncertainty is that the final valuation and consideration for the transaction have not yet been finalized. As of the signing date of the plan, the audit and evaluation of Hengtaike are still in progress, and the transaction price has not been disclosed. The issue price of shares is set at 28.48 yuan per share, and the lock-up period for shares received by the transaction counterparties is 36 months. The matching funds will be used to pay transaction taxes and fees, intermediary agency fees, and target project construction, as well as to supplement the listed company's working capital and repay debts.
Unaudited data show that Hengtaike's revenue in 2024 and 2025 was 206 million yuan and 193 million yuan, respectively; net profit attributable to parent was 32.2325 million yuan and 35.718 million yuan, respectively, maintaining stable growth. As of the end of 2025, Hengtaike's parent company shareholders' equity was only 416 million yuan, highlighting its light-asset nature.
Regarding the valuation of light-asset design companies, Jiang Han believes that traditional PE/PB models may be difficult to adapt to profit fluctuations and high upfront investment. A reasonable valuation should be based on a multi-stage discounted cash flow (DCF) model, supplemented by relative valuation methods for cross-validation, while incorporating qualitative factors such as technology iteration risk and downstream application cyclicality into quantitative considerations. When judging whether there is a premium bubble, one should not rely solely on book net assets or short-term profits, but should comprehensively assess the scarcity of technology in the segment, the progress of commercialization, and the payment structure of the transaction.
From the fundamentals of the listed company, Galaxy Microelectronics' net profit attributable to parent declined year-on-year in 2022 and 2023. In 2024, the company achieved revenue of 909 million yuan, a year-on-year increase of 30.75%; net profit attributable to parent was 71.8742 million yuan, a year-on-year increase of only 12.21%. In 2025, revenue was 1.050 billion yuan, up 15.46% year-on-year; net profit attributable to parent was 79.9047 million yuan, with the growth rate slowing to 11.17%, indicating weakening growth momentum.
On the funding side, Galaxy Microelectronics' monetary capital at the end of 2025 was only 137 million yuan, down 44.65% year-on-year. Operating cash flow weakened year by year, with net operating cash inflow of 43.7501 million yuan, a decrease of 34.73% year-on-year.
A person from a private equity firm believes that after consolidation, Hengtaike can boost the listed company's performance, but the overall size of the two companies is relatively small, and whether the synergy effect of "1+1>2" can be achieved remains uncertain. The biggest risk is that a high-premium acquisition creates a large amount of goodwill. If subsequent performance falls short, goodwill impairment will erode the listed company's profits. The market's enthusiasm for the acquisition to transform into a high-end track hinges on the ability to deliver long-term performance and the effectiveness of integration.
Market Concern: Abnormal Stock Price Movement Before Suspension Raises Insider Information Doubts; Company States No Violation
Moreover, the abnormal stock price movement before the suspension of this transaction raised market suspicions of insider information leakage. In the two trading days before the suspension announcement (June 10-11), Galaxy Microelectronics' stock price surged sharply, rising nearly 19% cumulatively with significantly increased volume; during the same period, the semiconductor industry index rose only 2.70%, showing a significant deviation from the industry index.
The company issued a statement saying that the relevant entities involved in the transaction have not engaged in insider information leakage, insider trading, or other violations. Regarding market concerns, Blue Whale News called Galaxy Microelectronics' Board Secretary Office on June 29 but received no response as of press time.
