Goldman Sachs Kematek (301611): Chairman Visit and Suzhou Factory Tour — Integrated Ceramic Manufacturing Benefiting from Strong Demand

Goldman Sachs visited Kematek's chairman and toured the Suzhou manufacturing facility on January 6, 2026, gaining confidence in the company's vertically integrated ceramic manufacturing capabilities and proprietary production tools. Kematek distinguishes itself through comprehensive in-house processes spanning material R&D, powder preparation, sintering, machining, cleaning, and inspection, utilizing self-developed ball mills and spray dryers to ensure superior product consistency and purity.

Management expressed strong optimism regarding demand from both domestic and international semiconductor equipment customers. The company is actively expanding its product range from basic ceramic components into higher-value devices, including ceramic heaters and electrostatic chucks. Ceramic heaters have already entered mass production, with yields gradually improving, and the company is concurrently expanding into electrostatic chuck products.

To fund this strategic capacity expansion, Kematek recently announced a RMB 750 million convertible bond offering dedicated to scaling production of ceramic heaters, electrostatic chucks, and ultra-high-purity silicon carbide components. Local semiconductor equipment clients are actively collaborating with Kematek on new product development to diversify their supply chains and mitigate geopolitical risks.

Goldman Sachs maintains a Buy rating on Kematek (301611.SZ) with a 12-month target price of RMB 99.70. This valuation is based on 58.5 times the expected price-to-earnings ratio for the July 2026 to June 2027 period. With the stock currently trading at RMB 99.81, the risk-reward profile appears balanced. Key downside risks include a potential slowdown in China's semiconductor capital expenditure and slower-than-expected product line expansion into modules.