Huaxin Holdings (01657.HK): Semiconductor Packaging and Testing Benefits from Industry Recovery and Policy Tailwinds

Huaxin Holdings (01657.HK), a semiconductor packaging and testing enterprise listed in Hong Kong, has recently become a market hotspot due to industry recovery and policy benefits [0]. The company’s main business is in a key mid-stream link of the semiconductor industry chain, benefiting from growing demand driven by emerging applications such as AI, automotive electronics, and 5G in 2025 [0]. The establishment of the National Big Fund Phase III (total investment exceeding 340 billion yuan) focuses on supporting links like packaging and testing in the industry chain, bringing direct policy dividends to the company [3]. Stock charts show that the stock experienced significant price increases and volume surges in August 2025, then stabilized [1], reflecting market attention to its prospects.

1. Industry Chain Position Advantage
   : As a mid-stream packaging and testing enterprise, the company benefits from both improved upstream chip supply and expanded downstream application demand [0].
2. Policy and Market Resonance
   : The funding support from the National Big Fund Phase III and the overall recovery of the semiconductor industry form a resonance effect, enhancing the company’s valuation potential [3].
3. Market Sentiment Reflection
   : The abnormal price and volume movements in August 2025 indicate investors’ pursuit of the semiconductor domestic substitution theme [1].

• The semiconductor industry is entering an upward cycle, with continuous growth in packaging and testing demand [0];
• Accelerated domestic substitution: As a local enterprise, the company is expected to gain more market share [0];
• Order growth from emerging fields like energy storage (e.g., CATL’s capacity expansion) indirectly drives packaging demand [4].

• Uncertainties in the global chip equipment supply chain (e.g., rumors of Applied Materials’ supply cuts) may affect upstream raw material supply [2];
• Cyclical fluctuations in the semiconductor industry may lead to unstable performance [0];
• Correction risk after overheated market sentiment [1].

The investment value of Huaxin Holdings (01657.HK) is closely related to the semiconductor industry recovery and policy support. Its packaging and testing business is at a key node in the industry chain, benefiting from demand growth across multiple application fields. Investors need to pay attention to factors such as industry cycle changes, supply chain stability, and policy implementation progress to comprehensively evaluate the company’s prospects.