Zhejiang Jingsheng Mechanical & Electrical Co Ltd: A Silent Catalyst in the Carbon‑Silicon Surge
Zhejiang Jingsheng Mechanical & Electrical Co Ltd (ticker 300316), listed on the Shenzhen Stock Exchange, has long specialized in crystal‑growing equipment for semiconductor, photovoltaic, and power‑device markets. With a market cap of 45.8 billion CNY and a 2025‑09‑04 close of 35 CNY, the company sits comfortably between its 52‑week high of 42.8 CNY and low of 21.39 CNY. Its price‑earnings ratio of 43.37 reflects the premium investors place on a niche yet technologically critical sector.
1. Carbon‑Silicon: The New Powerhouse
On 5 September 2025, multiple news wires highlighted a sudden spike in the carbon‑silicon (SiC) concept. Nvidia’s announcement that its forthcoming Rubin processor will adopt SiC for the interconnect base material sparked a 5.76 % rally in the SiC index. Key players—TianYue Advanced, LuXiao Technology, TianTong Co.—topped the list with limit‑ups, while Jingsheng’s own stock (300316) jumped 18.24 % after breaking its 5‑day moving average with a 12.66 % deviation.
SiC offers superior power density, lower dissipation, and high‑temperature stability, making it indispensable for electric‑vehicle power modules, industrial drives, and telecom infrastructure. YoleIntelligence projects the SiC substrate market to swell from 7.54 billion USD in 2022 to 20.53 billion USD by 2026, a CAGR of 33.37 % for conductive substrates.
2. Jingsheng’s Strategic Fit
Jingsheng’s portfolio—ranging from mono‑crystalline silicon truncating furnaces to silicon float‑zone pullers—directly supports the production chain of SiC substrates and devices. While its primary customers have historically been semiconductor fabs and photovoltaic manufacturers, the company’s advanced crystal‑growing machinery is equally applicable to SiC epitaxy, where precise lattice control is paramount.
The firm’s automation, high‑efficiency, and intelligent features align with the industry’s shift toward “Industry 4.0” production lines. As the automotive sector is projected to account for 74 % of the SiC power market by 2028, fabs that can reliably grow SiC wafers will become pivotal partners for OEMs. Jingsheng is positioned to supply these fabs, especially given its established reputation in high‑precision crystal equipment.
3. Market Momentum and Technical Signals
The stock’s technical breakout on 5 September is not a random blip. It coincides with a broader A‑share rally: the Shanghai Composite rebounded above 3,800 points, the ChiNext surged 6.55 %, and the Shenzhen Component climbed 3.89 %. The market’s collective optimism was buoyed by a resurgence in new‑energy concepts—solid‑state batteries, SiC, and photovoltaic equipment—all of which feed into Jingsheng’s customer base.
From a valuation standpoint, the 43.37 P/E ratio, though high, is justified by the company’s role in a rapidly expanding niche. Comparatively, its peers in the semiconductor equipment segment trade at similar multiples, indicating that the market is already pricing in a near‑term upside driven by SiC adoption.
4. Risks and Counterarguments
Critics may point to the company’s relatively narrow product line and its dependence on cyclical capital expenditure in the semiconductor sector. However, the SiC boom mitigates these concerns: demand for SiC substrates is less tied to the traditional silicon wafer cycle and more to the steady growth of electric vehicles and renewable energy infrastructure. Moreover, Jingsheng’s diversified client list—including LED, IGBT, and sapphire industries—provides a buffer against sectoral volatility.
Another potential risk is the competition from larger, global equipment makers. Yet Jingsheng’s focus on niche, high‑precision machinery and its proven track record in automation give it a competitive edge in markets where small‑batch, high‑purity production is essential.
5. Bottom Line
Zhejiang Jingsheng Mechanical & Electrical Co Ltd is not merely a passive observer of the SiC wave; it is a structural enabler. Its sophisticated crystal‑growing equipment positions it to capture the upside from the explosive demand for SiC substrates, especially in the automotive and renewable sectors. The recent technical breakouts, coupled with a market that has started to recognize the value of SiC, suggest that the company’s valuation is poised for a significant uptick.
Investors should view Jingsheng as a strategic play in the semiconductor equipment space, where the convergence of high‑temperature power devices and intelligent manufacturing creates a compelling growth narrative.