Ultimately, enterprise valuation bubbles must be resolved through the attainment of tangible performance results.

The AI industry is currently a focal point of attention, with leading AI-related companies generally enjoying substantial valuation premiums. Nevertheless, market differentiation looms on the horizon, and companies lacking robust performance will inevitably confront rational market corrections and valuation realignments.

The semiconductor materials sector has witnessed a resurgence in market conditions, fueled by the intense demand for AI infrastructure construction. Amidst this industry boom, numerous companies have seen their valuations soar, with Jiangfeng Electronics serving as a prime illustration. The company has cemented its industry leadership by ranking first globally in target material shipments and second in shipment value.

Historically, Jiangfeng Electronics' stock price has primarily fluctuated within a certain range since its listing, displaying lackluster market performance. However, entering 2026, the full-scale deployment of AI infrastructure has spurred a dramatic surge in demand across the semiconductor supply chain. Propelled by persistent market optimism, the company's stock price has skyrocketed, registering a 219% increase within the year and a market value hike of over RMB 55 billion compared to the previous period. As of the latest closing, Jiangfeng Electronics' total market value has reached RMB 80.8 billion.

Following the significant stock price surge, Jiangfeng Electronics promptly initiated a private placement plan to raise funds.

According to the company's announcement, Jiangfeng Electronics issued 10.6504 million A-share shares non-publicly to 11 qualified investors at an issue price of RMB 181.01 per share, raising a total of RMB 1.928 billion in this private placement.

On the evening of June 22, Jiangfeng Electronics announced the successful completion of its A-share issuance project to specific investors.

Industry analysts opine that the raised funds will effectively bolster the company's capacity expansion, technological R&D, and overseas market expansion, while also alleviating the financial strain caused by corporate debt financing. In the medium to long term, as capacity is progressively released, the company's performance is anticipated to steadily improve, aligning with the industry's growth dividends.

Regarding fund allocation, the raised funds are primarily earmarked for two core projects: the industrialization project for producing 5,100 electrostatic chucks for integrated circuit equipment annually, and the industrialization project for producing 12,300 ultra-high purity metal sputtering targets for ultra-large-scale integrated circuits annually. Notably, the electrostatic chuck project for integrated circuit equipment represents a new product track that the company has ventured into, extending from its existing core businesses of ultra-high purity targets and precision components.

Jiangfeng Electronics acknowledges that the project is currently in the nascent stages of production line construction, product development, customer verification, and market development. If the production line fails to be successfully established and mass production achieved, or if new products do not promptly pass downstream customer certifications, coupled with various risks such as industry technological iteration, market demand contraction, product unit price decline, production delay, market promotion falling short of expectations, and termination of external cooperation, the investment project may encounter issues such as production failure, idle new capacity, and project returns not meeting expectations, thereby adversely impacting the company's overall operational performance.

In terms of customer resources, Jiangfeng Electronics currently collaborates with leading customers encompassing global mainstream semiconductor manufacturers, including TSMC, SMIC, SK Hynix, Naura, Hua Hong Semiconductor, and United Microelectronics Corporation, boasting a high-quality and stable customer base.

Regarding the rationale behind continuous capacity expansion, Jiangfeng Electronics states that the current semiconductor industry is in a high-growth upward cycle, with rapid expansion in downstream customer demand. The company must continually ensure capacity supply to meet customers' incremental demand. If the company fails to keep pace with the growth rate of customer demand or misjudges the industry demand cycle and growth magnitude, it risks losing existing customers and potential orders, ultimately negatively impacting its daily operations, profitability, financial condition, and cash flow.

Public information reveals that Jiangfeng Electronics was established in 2005 and listed on the Growth Enterprise Market in 2017. The company's core business involves the R&D, production, and sales of ultra-high purity metal sputtering targets and semiconductor precision components, with products widely utilized in semiconductor chip manufacturing.

From the product revenue structure at the end of 2025, the company's ultra-high purity target business generated revenue of RMB 2.850 billion, accounting for 61.90% of total revenue, making it the company's largest core business. The precision components business yielded revenue of RMB 1.084 billion, accounting for 23.54% of total revenue. Other businesses contributed revenue of RMB 670 million, accounting for 14.56% of total revenue. In terms of profitability, the ultra-high purity target business exhibited the highest profitability, with a gross margin of 34.24%.

In terms of market regions, at the end of 2025, the company's domestic sales revenue amounted to RMB 3.036 billion, accounting for 65.93% of total revenue. Export sales revenue reached RMB 1.568 billion, accounting for 34.07% of total revenue. The business is centered on the domestic market while steadily expanding into overseas markets.

Entering the first quarter of 2026, industry demand continued to recover, albeit with the company's performance growth lagging slightly. First-quarter data indicated that Jiangfeng Electronics' single-quarter revenue was RMB 1.306 billion, a year-on-year increase of 30.49%. Net profit attributable to shareholders was RMB 210 million, a year-on-year increase of 33.42%. Net profit attributable to shareholders excluding non-recurring items was RMB 125 million, a year-on-year increase of 37.07%. Despite steady performance growth, influenced by the significant stock price increase, the company's latest dynamic price-to-earnings ratio remained as high as 96 times, indicating a high valuation.

Kan Jian Finance believes that in the long term, the semiconductor and AI sectors possess broad growth prospects, with relatively robust industry fundamentals. Nevertheless, short-term risks such as high valuations and financial pressure cannot be overlooked.

In recent years, Jiangfeng Electronics' asset-liability ratio has continued to climb, with escalating financial expenses and mounting corporate debt pressure. Financial data reveals that from 2023 to 2025, the company's asset-liability ratio increased from 34.15% to 54.40%, a cumulative rise of 20.25 percentage points over three years. In the first quarter of 2026, the company's asset-liability ratio further surged to 57.69%, a year-on-year increase of 7.44 percentage points, with continuous amplification of financial leverage.

Therefore, during the window period of high industry prosperity and a relaxed capital market financing environment, although the company can swiftly expand capacity and seize market share through capital expansion, it must also confront various operational and financial risks inherent in large-scale expansion. Currently, a valuation bubble has already emerged in the global AI sector. Once industry enthusiasm subsides and the bubble is cleared, high-valuation companies will face valuation correction pressure, and both the market and enterprises need to proactively prepare for risks.