On the afternoon of April 14, Pudatech Technology (00650.HK) saw its share price surge sharply, rising over 45% intraday. At the time of reporting, the stock remained up more than 40%, closing at HKD 0.435, with a significant increase in trading volume. Looking at a slightly longer timeframe, the company’s stock has gained over 70% cumulatively over the past two trading days.

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Broker Initiates Coverage, Positive on Transformation Path

According to recent research from Huaxin Securities, which initiated coverage with a “Buy” rating, Pudatech Technology is accelerating its shift from traditional business toward the semiconductor equipment sector. The company has achieved phased breakthroughs, particularly in wet cleaning equipment, and is expected to gradually enter high-end manufacturing segments.

From an industry perspective, the global semiconductor supply chain is undergoing restructuring, with domestic equipment substitution steadily advancing. Against this backdrop, Pudatech’s entry into key wafer manufacturing processes positions it to benefit from rising equipment demand driven by local foundry capacity expansions.

“Wet + Deposition” Dual-Track Layout Unlocks Growth Potential

Specifically, the company is building its product portfolio around two core processes: wet cleaning and thin-film deposition. Wet cleaning equipment is a critical step in wafer manufacturing, while LPCVD (Low-Pressure Chemical Vapor Deposition) equipment is widely used in thin-film deposition. Both areas involve high technological barriers. Historically, these equipment segments have relied on overseas suppliers, but domestic substitution trends provide significant growth opportunities. Pudatech’s early positioning in these fields gives it a strategic advantage. Once its products successfully pass customer validation and enter mass production, the company’s earnings leverage is expected to gradually unfold.

Validation and Volume Key to Next Milestones

However, according to industry norms, semiconductor equipment companies typically undergo long validation cycles. From prototype testing to production line verification and finally to mass delivery, each stage imposes high requirements for performance and stability. Analysts believe that Pudatech is still at the early stage of product introduction. Whether it can successfully integrate into wafer fabrication supply chains will be critical to the timing of its revenue realization. If validation progresses smoothly, the company’s order size and revenue scale could rise rapidly.

Profitability Inflection Point Expected in the Medium Term

As new products gradually achieve commercialization, the company’s profitability is expected to improve over the coming years. In particular, as equipment volumes increase and economies of scale take effect, profit margins may enter an upward trajectory, and the mid- to long-term growth logic will become clearer.

Overall, the recent sharp stock price movements largely reflect market pricing of expectations for the company’s transformation. Medium- to long-term performance will depend on technology implementation and order fulfillment. In the wave of domestic semiconductor equipment adoption, whether Pudatech can seize the window to transition from “theme-driven” to “performance-driven” growth remains the key focus for investors.

How to Buy Pudatech Technology on uSMART

After logging into the uSMART HK app, click the “Search” button in the top-right corner of the page, enter the ticker code（00650.HK）, and navigate to the details page to view transaction details and historical trends. Click the “Trade” button in the bottom-right corner, select the trade type, and submit your order after filling in the transaction conditions.

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