Behind the 20CM Limit-up After Resumption: Galaxy Microelectronics Plans to Acquire Hengtaike to Enter Medium-High Voltage Power Semiconductor Track

Galaxy Microelectronics (688689.SH) disclosed a restructuring plan and resumed trading after a suspension of more than half a month. The company plans to acquire 100% equity of Hengtaike Semiconductor from three shareholders—Shanghai Zheenhengxin Industrial Electronics Co., Ltd., Gongqingcheng Mingnuo Investment Partnership (Limited Partnership), and Tianmuyulin (Shanghai) Technology Co., Ltd.—through issuance of shares, while simultaneously raising matching funds.

On the first day of resumption, the stock hit a 20CM limit-up, closing at 55.88 yuan per share, pushing its total market value to about 7.2 billion yuan. The turnover rate was only 1.21%, with a limit-up block of 291 million shares, 185 times the daily trading volume, representing over 1.5 billion yuan of pending buy orders.

Amid the high cycle of the power semiconductor industry, the market has given a positive outlook to Galaxy Microelectronics' acquisition to enter the high-end medium-high voltage power semiconductor track. However, the transaction still faces multiple controversies: suspicions of insider trading due to abnormal price run-up before the suspension, the still-undetermined valuation of the target, and potential large goodwill pressure in the future.

Integration Challenges: Refined Management of Product Lines and Customers

Jiang Han, senior researcher at Pangoal Institution, pointed out that the biggest integration challenge lies in the refined management of product lines and customers. After Hengtaike is merged, the product count will increase from over 700 to more than 1,000, significantly increasing complexity in customer management and capacity allocation.

Second, core technology is highly tied to the R&D team. Without reasonable equity incentives and non-compete clauses, it may face technology loss and goodwill impairment risks.

Industrial Synergy Logic: Entry into Higher-End Technology

Compared with cross-sector mergers lacking synergy, this acquisition is an intra-industry integration to fill gaps. After the deal, the company is expected to quickly fill its technological gap in medium-high voltage power semiconductors, filling high-end product blanks and improving the overall product matrix.

As a semiconductor discrete device company listed on the STAR Market in 2021, Galaxy Microelectronics has long relied on small signal devices and low-voltage power devices as its core business, but has been relatively slow in laying out high-end areas such as high-voltage MOSFETs, IGBTs, and SiC. International giants have built full-chain technology loops covering materials, processes, and manufacturing, while domestic IDM leaders have also achieved volume production of high-voltage MOS and IGBTs, narrowing the late-mover catch-up window.

Hengtaike is seen as a key means for Galaxy Microelectronics to break through technical bottlenecks. According to the restructuring plan, Hengtaike is a national-level 'Little Giant' specializing in power semiconductor products, focusing on R&D and sales of products used in various power supplies, lithium battery protection, brushless motors, new energy, and E-car (OBC, electronic control) fields.

Hengtaike possesses medium-voltage SGT MOSFET and high-voltage SuperJunction technologies, with its 150V-200V medium-high voltage SGT MOSFET reaching domestic top-tier levels, capable of direct pin-to-pin replacement of Infineon's medium-voltage series.

This transaction is a 'Fabless design + IDM manufacturing' industry chain integration: Galaxy Microelectronics has mature chip manufacturing capacity but lacks high-end design capability; Hengtaike possesses top-tier design technology but lacks its own production line, long-term constrained by foundry capacity and cost fluctuations. Complementary potential exists, but synergy realization depends on subsequent integration.

Valuation and Financial Pressure: Undetermined Valuation Raises M&A Game and Risk Assessment

The plan shows Galaxy Microelectronics warned that Hengtaike faces two-way competition from international giants and domestic upstarts. If the global macro economy weakens, downstream demand growth slows, or the semiconductor industry experiences a deep, sustained downturn, it will affect the target's performance.

A more core uncertainty is that the final valuation and consideration have not been finalized. As of the signing date of the plan, Hengtaike's audit and valuation work is still ongoing, and the transaction price has not been disclosed. The share issuance price has been set at 28.48 yuan per share, with a 36-month lock-up period for the shares received by the counterparty. Proceeds from the supporting offering will be used to pay transaction taxes and fees, intermediary costs, target project construction, and supplement the listed company's working capital and debt repayment.

Unaudited data shows Hengtaike's 2024 and 2025 revenues were 206 million yuan and 193 million yuan respectively; net profits attributable to parent were 32.2325 million yuan and 35.718 million yuan. By end of 2025, Hengtaike's parent company equity was only 416 million yuan, showing a significant light-asset nature.

Jiang Han said that the valuation of light-asset semiconductor design companies centers on intangible assets like IP cores and R&D teams. Traditional PE/PB models may be ineffective due to earnings volatility and high upfront investment. A reasonable valuation could be based on a multi-stage DCF model, cross-validated with relative valuation methods, while incorporating technical iteration risk and downstream application cyclicality. Whether there is a premium bubble cannot be simply judged by book net assets or short-term profits, but should comprehensively assess technological scarcity in the niche, commercialization progress, and transaction payment structure.

From the listed company's fundamentals, Galaxy Microelectronics' net profit attributable to parent declined year-on-year from 2022 to 2023. In 2024, revenue was 909 million yuan, up 30.75% YoY; net profit was 71.8742 million yuan, up only 12.21% YoY; in 2025, revenue was 1.05 billion yuan, up 15.46% YoY; net profit was 79.9047 million yuan, growth slowing to 11.17%. Overall growth momentum further decelerated.

On the financial side, Galaxy Microelectronics' cash and equivalents at end of 2025 were only 137 million yuan, down 44.65% YoY; operating cash flow weakened annually, with net cash from operations of 43.7501 million yuan, down 34.73% YoY.

Market Focus: Consolidation Timeline, Synergy Delivery, and Pre-Suspension Price Anomaly

A private equity insider said the key is not the deal closing but the consolidation timeline and synergy realization. Hengtaike has stable revenue and profit, and consolidation after closing can boost the listed company's performance; however, the overall size of both companies is small, and whether they can achieve a '1+1>2' synergy remains uncertain.

He pointed out that the biggest risk is that a high-premium acquisition may create large goodwill; if future performance falls short, goodwill impairment will directly erode the listed company's profit. While the market is chasing semiconductor M&A to transition to high-end tracks, the core test lies in long-term earnings fulfillment and integration effectiveness.

In addition, the stock price anomaly before the suspension has raised questions about insider information leakage: on June 10-11, Galaxy Microelectronics shares surged abnormally, gaining nearly 19% in two days with significantly higher volume; the semiconductor sector index rose only 2.70% over the same period. The company stated that there is no insider information leakage or insider trading related to the transaction.

Regarding market concerns, Blue Whale News contacted Galaxy Microelectronics' board office on June 29, but received no response as of press time.