Xingfu Electronics (688545) Strong Stock Analysis: Catalysis from Memory Chip Concept Resonates with Domestic Substitution Logic

This analysis is based on Sci-Tech Innovation Board (STAR Market) data from Eastmoney.com [1] and market reports on the memory chip concept sector [2], released on January 7, 2026. Xingfu Electronics closed at RMB 44.85 on the day, with a daily gain of 15.65%, turnover rate of 25.03%, and a net inflow of main capital of RMB 86.2921 million, ranking among the top gainers on the STAR Market. The company’s strong performance mainly benefited from the overall 3.30% surge in the memory chip concept sector and the fundamental positive news of planning to invest 480 million yuan to build an electronic-grade phosphoric acid production capacity project. From a technical perspective, the pattern of rising price with increasing volume is healthy, but attention should be paid to profit-taking pressure after the sharp short-term increase; from a medium-to-long-term perspective, the company’s nearly 70% market share in the electronic-grade phosphoric acid market and the wave of semiconductor localization provide solid support for its stock price.

Xingfu Electronics’ strong performance today is the result of resonance of multiple factors.

— on January 7, the sector rose by 3.30% overall, ranking second among concept sectors in terms of gain, and 121 stocks in the sector saw a general upward trend [2]. Against the backdrop of the overall strength of the semiconductor industry chain, wet electronic chemicals suppliers such as Anji Technology and Xingfu Electronics led the gains, reaching 18.86% and 15.65% respectively [2]. In the afternoon of the day, the semiconductor sector pulled back after rising, but more than 10 stocks including Xinyuan Micro, Hengkun New Materials, Nanda Optoelectronics, and Changchuan Technology hit the daily limit or rose by more than 10%, fully reflecting the market’s optimistic sentiment toward the domestic semiconductor industry chain [3].

. On December 9, 2025, Xingfu Electronics announced plans to invest approximately 480 million yuan to build a 40,000-ton/year electronic-grade phosphoric acid project, located in Yichang New Material Industrial Park, with construction scheduled to start on December 15, 2025 and a construction period of 13 months [4]. Electronic-grade phosphoric acid is a key material in semiconductor manufacturing, mainly used in the etching process of wafer manufacturing for etching or removing silicon nitride. With the iteration of global semiconductor technology, the demand for highly selective etching solutions from advanced memory chips has increased significantly, directly driving the continuous rise in market demand for electronic-grade phosphoric acid. In addition, on December 15, 2025, the company participated in the establishment of a joint venture, contributing approximately 46.2678 million yuan to expand its business scope of electronic-grade chemicals [5].

From the trading data, Xingfu Electronics presents a typical healthy pattern of “rising price with increasing volume”. The turnover rate of 25.03% far exceeds the average turnover rate of 2.92% on the STAR Market on the same day [1], ranking 7th in turnover rate on the STAR Market, indicating extremely high market participation and active capital game. The net inflow of main capital of RMB 86.2921 million shows that institutional funds actively entered the market to accumulate chips, which is consistent with the overall trend of the memory chip concept sector being sought after by main capital on the day — Shenggong Co., Ltd., ACMR, BIWIN Storage, East Chip Semiconductor, etc. all received net inflows of over 100 million yuan [2].

A high turnover rate is a double-edged sword. On one hand, it indicates extremely high market attention to the stock, with sufficient chip exchange, which may lay a foundation for the subsequent market; on the other hand, a turnover rate of 25% also means that a large number of short-term profit-making chips exist. If the subsequent capital undertaking strength is insufficient, the stock price may face callback and consolidation pressure. Investors need to closely monitor changes in trading volume and the continuity of capital flow in subsequent trading days.

Founded in 2008 and located in Yichang, Hubei Province, Xingfu Electronics is one of the earliest domestic enterprises engaged in R&D of wet electronic chemicals [6]. The company’s main products include general wet electronic chemicals such as electronic-grade phosphoric acid and electronic-grade sulfuric acid, as well as functional wet electronic chemicals such as etching solutions and cleaning agents. The technical indicators of its products reach the highest level of international SEMI standards, successfully realizing import substitution.

. According to public data, Xingfu Electronics’ domestic market share in the electronic-grade phosphoric acid market has jumped sharply from 39.25% in 2021 to the current 69.69%, showing an absolute leading position; its market share in the electronic-grade sulfuric acid market has also increased from 9.97% to 31.22% [6]. This rapid increase in market share reflects the company’s comprehensive competitive advantages in technological R&D, capacity layout and customer expansion, and also indicates that the company is in a leading position in the domestic substitution process of semiconductor wet electronic chemicals.

From the industry perspective, wet electronic chemicals are key materials for semiconductor manufacturing, and the country has clearly included them in the strategic focus of the new generation of information technology and new materials fields. Against the background of restrictions on overseas semiconductor equipment, the demand for independent and controllable industrial chain has become increasingly urgent, providing broad domestic substitution space for domestic wet electronic chemical enterprises. The continuous growth in demand for highly selective etching solutions from advanced memory chips will directly drive the market demand for key materials such as electronic-grade phosphoric acid.

The strong performance of Xingfu Electronics is not an isolated event, but a concrete manifestation of the investment logic of the semiconductor localization main line. Under the current global semiconductor industry pattern, the United States continues to tighten semiconductor export restrictions against China, and domestic substitution has become a common demand of all links in the industry chain. Although wet electronic chemicals account for a small proportion of chip costs, they have a key impact on chip yield and product performance. Therefore, downstream customers have extremely strict certification for suppliers, with high access thresholds. Relying on technological accumulation and market share advantages, Xingfu Electronics has become a core beneficiary of this localization process.

The company’s planned 480 million yuan electronic-grade phosphoric acid project not only expands the capacity scale, but more importantly, further consolidates its leading market position. Currently, the company’s market share is nearly 70%, and continuing to expand production on this basis will form a virtuous cycle of “scale effect — cost advantage — expanded market share”. For semiconductor material enterprises, production capacity scale is one of the important factors to obtain customer orders, especially in the current domestic substitution window period, downstream wafer fabs and packaging and testing factories have strong demand for localized procurement, and the company’s capacity expansion just fits this market opportunity.

The strong performance of Xingfu Electronics is also a microcosm of the overall sentiment recovery on the STAR Market. Although the average turnover rate of the STAR Market on the day was 2.92%, which was lower than that of Xingfu Electronics, many stocks performed actively, such as Hengkun New Materials rising 19.99% and Shengbang Security rising 20% [1]. As the main listing sector for hard technology enterprises such as semiconductors and biomedicine, the performance of the STAR Market has indicator significance for the investment sentiment of sci-tech growth stocks. The strong performance of semiconductor industry chain stocks such as Xingfu Electronics may indicate that the market’s attention to the sci-tech growth sector is recovering.

needs to be focused on. The single-day gain of 15.65% is a large increase among STAR Market stocks, and coupled with a high turnover rate of 25%, the stock may face short-term profit-taking pressure on the next day. Historical experience shows that stocks that rise rapidly often need to oscillate and consolidate to digest short-term profit-making chips.

also deserves attention. A turnover rate of 25% means frequent chip exchange. If the turnover rate drops sharply in subsequent trading days and the stock price fails to continue to rise, it may form an unfavorable situation of “increasing volume without rising price”. In addition, the semiconductor sector pulled back after rising on the day [3], so attention should also be paid to the impact of sector sentiment fluctuations on individual stocks.

needs to be considered in the medium term. The 480 million yuan investment project just started in December 2025, and it will take about 13 months of construction period to contribute profits. During this period, the company’s capital expenditure and depreciation and amortization pressure may increase. In addition, the semiconductor industry has strong cyclicality, and if the industry prosperity declines, it will affect the company’s product demand and profitability.

is the company’s biggest fundamental support. Driven by both national policy support and the demand for independent and controllable industrial chain, the domestic substitution process of wet electronic chemicals will continue to advance. As an industry leader, Xingfu Electronics is expected to fully benefit from this structural change.

is also worth looking forward to. The company’s market share in electronic-grade phosphoric acid is nearly 70%, and there is limited room for further improvement, but its market share in electronic-grade sulfuric acid of 31.22% still has great room for improvement, and the company’s layout in functional wet electronic chemicals such as etching solutions and cleaning agents is expected to open up a new growth curve.

deserves attention. With the continuous growth of the company’s performance and the market’s recognition of its domestic substitution logic, the valuation system of sci-tech growth stocks on the STAR Market may undergo restructuring, providing excess return opportunities for long-term investors.

Xingfu Electronics (688545) performed strongly on January 7, 2026, closing at RMB 44.85, with a daily gain of 15.65%, turnover rate of 25.03%, and a net inflow of main capital of RMB 86.29 million. The core driving factors for the company’s strong performance include: market sentiment catalysis from the 3.30% surge in the memory chip concept sector, and fundamental positive news of planning to invest 480 million yuan to build an electronic-grade phosphoric acid capacity project. The company has a nearly 70% domestic market share in the electronic-grade phosphoric acid market, with technical indicators reaching the highest level of international SEMI standards, and is a benchmark enterprise that has achieved import substitution in the field of semiconductor wet electronic chemicals.

From a technical perspective, the pattern of rising price with increasing volume indicates that the rise is supported by continuous capital inflow, but after the sharp short-term increase, it may face profit-taking pressure. From a fundamental perspective, as a core beneficiary of the semiconductor localization main line, the company’s medium-to-long-term value is promising, but attention should be paid to the risks of project construction progress and industry cycle fluctuations. Investors should maintain attention to the sci-tech growth sector, while paying attention to position control and risk management.