Event: on August 26, the company released its 2022 semi-annual report, with operating income of 840 million yuan during the reporting period, down 1.44% from the same period last year, and net profit of 212 million yuan, down 11.40% from the same period last year.

H1 performance declined compared with the same period last year, and thyristors were affected by weak consumer demand. In 2022, the company's H1 realized operating income of 840 million yuan, down 1.44% from the same period last year; the net profit returned to its mother was 212 million yuan, down 11.40% from the same period last year; Q2 realized revenue of 465 million yuan in a single quarter, up 24.33% from the previous quarter, and its net profit was 112 million yuan, up 12% from the previous quarter. From the perspective of business segmentation, weak consumer demand superimposed high inventory of downstream customers. Sales of thyristor business declined in the first half of the year and are expected to improve in the second half of the year. On the expense side, the R & D investment in the first half of the year was 82.6224 million yuan, an increase of 48.33% over the same period last year, mainly due to the company's continued increase in R & D investment; financial expenses were 14.3975 million yuan, an increase of 1641.29% over the same period last year, mainly due to exchange losses in subsidiaries.

With the rapid development of MOS business, Jetty Nantong Technology has been successfully trial-produced. The company continues to strengthen the research and development of Jetty Wuxi VD MOS, SJ MOS and other products such as Shanghai SGT MOS, advanced TVS and advanced rectifier devices. In the first half of the year, the total revenue of Jet Wuxi and Jet Shanghai reached 311 million yuan, accounting for more than 37% of the revenue. In addition, the second phase of the "High-end Power Semiconductor industrialization Construction Project" of Jetty Nantong Technology began construction in April, with an investment of about 650 million yuan, with a total of 68 new hardware equipment and 2 new software systems. The first phase of the project successfully entered trial production in July, and the two phases of the project further enhance the advanced nature of the company's products, expand the production capacity of high-end products, improve operational efficiency and capacity, and promote the development of domestic power semiconductors and downstream application industries.

Profit forecast: the company's revenue from 2022 to 2024 is estimated to be 200,000,000,000 yuan, and the net profit of its mother is 4.0pm 750,000,000 yuan, maintaining the "recommended" rating.

Risk hints: (1) intensified market competition; (2) increased depreciation and amortization of assets; (3) unrealizability of profit forecasts and inapplicability of valuation methods.