On July 14, 2023, the company disclosed its performance forecast for the first half of 2023. In the first half of 2023, the company is expected to achieve a net profit of 8914.03 million yuan, or-58 percent, 48% compared with the same period last year, and is expected to achieve a net profit of 7337.14-90.8408 million yuan after deduction. 48% compared with the same period last year.

1H23 downstream market demand weakens traditional business pressure, MOSFET market competition intensifies profitability slightly. In the first half of 2023, the company is expected to achieve a net profit of 8914.03 million 110.3642 million yuan, 48% of the same period last year, and 7337.14 million 90808 million yuan of net profit after deduction, which is 48% of the same period last year. Affected by macroeconomic signs of recovery in the consumer market demand is not obvious, MOSFET industry competition, the company's new production line has not yet formed a higher capacity utilization, leading to a rise in the unit cost of products, in order to ensure the market share of the company's products, some product prices have a slight decline in adjustment, resulting in a certain degree of decline in gross profit margin, so the company's net profit from the same period a year earlier, but the decline has narrowed.

Increase R & D investment and technological innovation, and build core competitiveness with IDM mode. The company's thyristor business continues to upgrade and iterate on the existing basis, expanding its market share in household appliances, low-voltage appliances, industrial equipment and other fields; the series of protective devices are further extended from the vehicle specification level to the fields of communications, smart home, security, industrial control, instrumentation, lighting, lightning protection module and so on. Actively lay out FRD and high-end rectifier product lines, speed up the research and development and promotion of new power devices such as MOSFET, IGBT and third-generation semiconductors, and cut in synchronously from advanced packaging, chip design and other aspects. We are optimistic about the long-term competitiveness brought by the company's IDM model, and the improvement of production line capacity utilization driven by the recovery of downstream demand in the future will contribute to the repair of the profit side.

It is estimated that the net profit of homing in the year 23-25 is 4.15,6.31 and 823 million yuan respectively, which is + 15.31%, 52.19% and 30.42% respectively compared with the same period last year, and the corresponding EPS is 0.56,0.86 and 1.12 yuan respectively. The current price of the company's stock corresponds to the valuation of PE in 33-22-17, maintaining the "buy" rating.

The risk of less than expected technology iteration and product upgrading; the risk of increased market competition; the risk of dependence on imported equipment; the risk of convertible debt-to-equity pressure.