CLSA has issued a research report stating that TIANYU SEMI (02658) stands to benefit from the increasing adoption of silicon carbide (SiC) epitaxial wafers in high-power and high-voltage applications. The global market for SiC epitaxial wafer power semiconductors is forecast to achieve a compound annual growth rate of 40.5% from 2025 to 2029, with a total addressable market estimated at $16 billion. CLSA projects the group's revenue will grow to RMB 3.31 billion by 2027. Based on a price-to-sales ratio of 7.5 times, the firm has set a target price of HK$70 and initiated coverage with an "Outperform" rating.

The report noted that SiC epitaxial wafers represent one of the most value-added segments in the upstream supply chain. TIANYU SEMI is the largest supplier of SiC epitaxial wafers in the Chinese market in 2024 and is among the first domestic companies capable of mass-producing 8-inch SiC epitaxial wafers, positioning it as a key beneficiary of industry growth.