Event

On July 14, 2023, Jetty issued a half-year performance forecast for 2023, which is expected to achieve a net profit of 89.1403 million yuan to 110.3642 million yuan in the first half of 2023, down 58% from the same period last year.

Main points of investment

Insufficient capacity utilization superimposes the impact of price adjustment, and the profit side is under short-term pressure. Affected by the previous capacity shortage, downstream customers have more stocks, affected by inventory and downstream consumer market demand and other factors, the company's production line capacity utilization is low, resulting in an increase in the unit cost of products, in order to ensure the market share of products, the prices of some products have been reduced slightly, and the gross profit margin has declined in a short period of time. In 2023, the net profit was 89.1403 million yuan to 110.3642 million yuan, down 58% from the same period last year. It is expected that as the consumer market warms up and downstream customer inventory is cleared, product demand is expected to be repaired step by step.

Actively expand car regulations, new energy and other high threshold markets. The company actively develops product lines of automotive specification-level power semiconductor protective devices, including FRD and high-end rectifiers, further expanding its applications in new energy vehicles, photovoltaic, wind power, communication equipment and other fields, creating a power semiconductor IDM whole industry chain, multi-core technology and strong industry layout is expected to bring multiple performance growth curves.

Investment advice:

We estimate that the company's 2023-2025 homing net profit is RMB 460,000,000, covering a "buy" rating for the first time.

Risk Tips:

The market demand for thyristors and protective devices recovers slowly; the expansion of new products is not as expected; and the downside risk of semiconductor cycle.