The 412 million dividend has just been paid and another 1 billion is planned to be raised. Hongda Electronics plans to raise funds to grab the window for AI devices.

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The 412 million dividend has just been paid and another 1 billion is planned to be raised. Hongda Electronics plans to raise funds to grab the window for AI devices.

Jingxing Zhiyu

2026.11.10 17:27

· From Guangdong

Full text 3077 words

On the evening of November 9, Hongda Electronics (300726.SZ) disclosed its 2026 private placement plan. It plans to issue no more than 123.55 million shares to no more than 35 specific targets, and the total amount of funds raised will not exceed 1 billion yuan, all of which will be invested in chip polymer tantalum capacitor industrialization projects, ceramic thin film circuits, and SLC industrialization projects. The construction periods are 36 months and 24 months respectively.

This is the second time in four years that the company has launched a 1 billion yuan fixed increase. At the end of 2021, the company conducted a round of private placement, raising nearly 1 billion yuan, and the issue price was 85.18 yuan. On November 9, 2026, the closing price of Hongda Electronics was 39.58 yuan, a decrease of approximately 53.5% from the issue price of the previous round of private placement. On the 10th, the stock price opened high and fell quickly, closing at 39.95 yuan, a slight increase of 0.93%.

From an industry perspective, the overflow of demand for AI servers and high-speed optical modules is opening a window for domestic component manufacturers. It is understandable that HTC Electronics wants to increase production capacity while the window is still open. However, the fact that the last round of investment projects was postponed three times and the capacity utilization rate was less than 40% may become the biggest concern for institutions participating in this round of subscription.

Tantalum capacitors grab the window

Tantalum capacitors play the role of instantaneous power replenishment and voltage stabilization in servers. When the GPU instantly pulls up current, this type of device is needed to maintain power supply stability. Hongda Electronics stated in its issuance plan demonstration report that the unit usage of tantalum capacitors in a single AI server is 30 times that of a traditional server.

Demand is amplifying, but supply is rigid. According to company disclosures, global AI computing power-grade polymer tantalum capacitor production capacity is mainly concentrated in four manufacturers: KEMET, AVX, Panasonic and Vishay, which together control about 90% of the production capacity. KEMET is part of the Yageo Group, and AVX has been acquired by Kyocera. Under the monopoly, overseas manufacturers have raised prices multiple times in the past two years: in 2025, KEMET has raised prices for some tantalum capacitor products by 10% to 15% and 20% to 30%, and Panasonic has raised prices for some models by 15% to 30% since February 2026. Guosheng Securities believes that passive components under the AI wave are starting a new super cycle, and the price increase trend of polymer tantalum capacitors is expected to continue; Shanghai Steel Federation estimates that global tantalum ore supply is expected to decline by 13% year-on-year in 2026 - rising demand coupled with shrinking supply, leaving a rare introduction window for domestic manufacturers.

There is no shortage of domestic players. Hongda Electronics, Zhenhua Technology, and Torch Electronics all have plans in the field of tantalum capacitors. Among them, Hongda and Zhenhua are expanding from the high-reliability market to the civilian market. In addition to price, opportunities for domestic manufacturers also lie in supply security: server manufacturers can reduce their dependence on overseas supply by adding a second source of supply; domestic device manufacturers can be closer to customers' design adjustments, proofing and delivery rhythms. The process and quality control capabilities accumulated over many years of high-reliability products are the basis for such manufacturers to enter the high-end civilian market.

Ceramic film circuits are used for optical module lasers, detector packaging and high-density interconnection. SLC (single-layer ceramic capacitors) are one of the preferred components for coupling, filtering, bypassing and matching in RF front-end circuits of 800G, 1.6T and even 3.2T optical modules. CITIC Securities estimates that the optical module market demand is expected to be close to 90 million units in 2026, with the market size jumping to approximately US$45 billion, a year-on-year increase of approximately 272%.

This market is also dominated by Japanese and American manufacturers. The inquiry reply disclosed by Tianji Electronics in 2023 cited industry reports that Japanese manufacturers accounted for 58.6% of the global chip single-layer ceramic capacitor market, and American manufacturers accounted for approximately 19.5%; domestic participants include Hongming Electronics, Tianji Electronics, Hongda Electronics, Zhenhua Yunke, etc. For domestic manufacturers, there are two opportunities: first, optical communication customers begin to introduce domestic suppliers; second, customers require in-depth cooperation from manufacturers when developing new models.

It is worth noting that ceramic thin film circuits are connected to the SLC process - both metal plating and circuit engraving are required on the ceramic substrate. If the two types of products are produced together, the company can supply substrates and devices at the same time, upgrading from a single product supplier to a "substrate + device" overall solution provider, and the categories that can be purchased by a single customer will increase.

Performance has just reached an inflection point, and the last round of fundraising projects fell short of expectations

In fact, Hongda Electronics has already made plans to expand into the civilian market. The company started with the high-reliability tantalum capacitor business and gradually expanded to more than 20 types of electronic components and module products such as ceramic capacitors, inductors, and power modules. High-reliability business is still the main source of revenue, but the growth engine has switched. In the first half of 2026, high-reliability business revenue was 602 million yuan, a year-on-year decrease of 15.65%; civilian product business revenue was 296 million yuan, a year-on-year increase of 118.99%, accounting for 32.56% of operating income.

The heavy volume of private goods can be seen more clearly from the third quarterly report. In the first three quarters, the company achieved operating income of 1.519 billion yuan, a year-on-year increase of 8.20%; net profit attributable to the parent company was 384 million yuan, a year-on-year increase of 17.21%; non-net profit after deduction was 340 million yuan, a year-on-year increase of 20.97%. Among them, the single-quarter revenue in the third quarter was 609 million yuan and the net profit attributable to the parent company was 158 million yuan, a year-on-year increase of 11.23% and 26.67% respectively. The single-quarter growth rate in Q3 is significantly faster than the cumulative level, and profits are coming out of the trough around 2024. From 2023 to 2025, the company's net profits attributable to the parent company were 472 million yuan, 279 million yuan, and 401 million yuan respectively.

In terms of products, the total revenue of ceramic thin film circuits and SLC in the first half of the year was 157 million yuan, a year-on-year increase of 183.12%, which has exceeded last year's revenue of 145 million yuan; civilian tantalum capacitor revenue was 74.871 million yuan, a year-on-year increase of 51.06%. The company disclosed that chip polymer tantalum capacitors have been supplied in batches to leading domestic manufacturers in the server and storage fields. Ceramic film circuits and SLC have entered the supply chains of many leading optical module manufacturers, and the production capacity of related products is becoming saturated. This is also the direct reason for this expansion.

According to the plan, 530 million yuan of raised funds are planned to be invested in the tantalum capacitor project, which will be implemented by Xiangyi Electronics in Xiangxiang, Hunan; 470 million yuan is planned to be invested in the ceramic film circuit and SLC project, which will be implemented by the listed company in Zhuzhou. The total investment of the two projects is 1.083 billion yuan, of which the total engineering cost is 928 million yuan, accounting for 85.64%. The 1 billion yuan to be raised is equivalent to more than half of the company's 1.887 billion yuan revenue in 2025.

It is worth noting that the company’s last private placement also raised 1 billion yuan, but the results were not satisfactory. At the end of 2021, Hongda Electronics issued 11.7398 million shares at 85.18 yuan per share, raising net funds of 994 million yuan. Subscribers included CITIC Securities, Caitong Fund, China Asset Management, etc. As of the end of August this year, a total of 958 million yuan had been invested in fundraising, of which 575 million yuan had been invested in the microwave electronic components production base project. The completion date has been postponed three times, from the original end of 2023 to the end of 2026; as of the end of August, the cumulative capacity utilization rate of the project was only 38.60%, and it has not yet reached the scheduled usable state.

The company explained that the new production capacity in the industry has been concentrated, the certification and introduction cycle of downstream head customers is longer than expected, and the pace of order expansion is lagging behind. It is doubtful whether the newly raised investment projects will face the same capacity digestion problem after the 36-month construction period ends.

Looking at the performance of the secondary market, the company's stock price closed at 39.58 yuan on November 9, which was about 53.5% lower than the last round of private placement issuance price and about 58% lower than the high point during the year. The issuance price of this round is not less than 80% of the average price of the 20 trading days before the pricing base date, and the subscription shares are locked for 6 months. Although the stock price has fallen sharply compared with 2021 and the cost of participation has been significantly reduced, the falling stock price trend after the last round of private placement will still test the willingness of new funds to subscribe. The feasibility report for this fundraising has not yet listed the new annual production capacity, full-scale revenue and investment payback period. The benefit analysis of the two projects only stated that "it has good economic benefits."

This round of financing comes less than five months after the company implemented a large dividend. On June 12 this year, Hongda Electronics implemented a 2025 profit distribution plan based on a cash distribution of 10 yuan for every 10 shares, distributing 412 million yuan in cash, equivalent to 102.66% of the net profit attributable to the parent company that year. As of the end of September, the company's monetary funds were 252 million yuan and trading financial assets were 1.167 billion yuan, totaling 1.419 billion yuan. The asset-liability ratio was approximately 10.50%. With ample funds on its books and a very low debt ratio, the company still chooses to expand production through private placement. The reasonable explanation is to use the AI boom cycle and high stock price position to lock in long-term capital at a relatively low cost of equity - but for investors, "high dividends" and "high financing" have appeared one after another within five months, and the priority of capital allocation is worth questioning.

From an industrial logic perspective, this investment comes at the right time: the gap is real, overseas supply is rigid, customers are willing to substitute domestic products, and the company also has a process foundation accumulated over many years in the high-reliability field. However, from the plan to the performance, there are still four thresholds in between: review by the National Defense Science, Technology and Industry Bureau, review by the shareholders' meeting, review by the Shenzhen Stock Exchange, and registration with the China Securities Regulatory Commission. There is also a 36-month construction cycle and an unquantified benefit estimate. The last round of fixed increase has proved that the money received during the window period will only count if it turns into production capacity that reaches production on time and is digested by customers. (Author｜Chen Xinan)

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