On June 21st, Kaiweite, which saw four successive daily limit increases in the past six trading days, fell markedly this morning. As of press time, on June 21, Kaiweite had fallen by 6.43%, to 48 yuan/share, with a total market value of about 3.5 billion yuan.

Regarding specific news, on June 20th, Kaiweite issued a price fluctuation announcement, stating that after the company's self-inspection and verification with its controlling shareholder and actual controller, as of the disclosure date of this announcement, there was no significant information that should be disclosed but has not yet been disclosed.

At the same time, Kaiweite also warned that as of June 20th, its latest static PE ratio was 212.42 times, while the average static PE ratio for the calculation, communication, and other electronic device manufacturing industry was 33.03 times in the past month, and the company's PE ratio was significantly higher than the industry average level.

In the eyes of market investors, Kaiweite's recent soaring stock price may be due to the continued strength of the semiconductor sector in which it operates. Kaiweite responded to the "Science and Technology Innovation Board Daily" reporter on June 21st, stating:" The company's current revenue mainly comes from high-voltage planar MOSFET products, downstream shipments include industries such as consumer electronics, industrial control, and so on, which have ups and downs. The main business has not changed."

"The company is still in the early stage of capacity layout and process platform development for ultra-high voltage planar MOSFET and SIC power devices. The revenue of the above products accounts for a relatively small proportion. As for the latest progress of related products, the company continues to expand the production capacity layout and process platform development of SiC MOSFET, and the 1200V SiC MOSFET process platform is still in the pilot testing stage." Kaiweite said.

With regard to current orders and business performance, "After the company's self-inspection, the company's production and operating activities are normal, and there has been no significant change in daily operations." Kaiweite said.

In fact, there is more than just Kaiweite among listed companies facing similar situations. Recently, many power semiconductor companies have released information on product price increases.

According to an incomplete survey by the Science and Technology Innovation Board Daily reporter, since the beginning of the year, listed companies such as Jiangsu Jiejie Microelectronics, Yangzhou Jingxin Microelectronics Co., Ltd., and Shenzhen Yongyuan Microelectronics Technology Co., Ltd. have issued "price adjustment letters" to customers, with price increases ranging from 5% to 10%.

A distributor of power devices said to the Science and Technology Innovation Board Daily reporter that due to the weaker market conditions in the first quarter of this year, domestic companies, including Kaiweite, had been discussing product price increases, although whether to ultimately raise prices or not would also be negotiated with downstream customers, taking into account factors such as customer acceptance and purchase volume, and adopting a "volume-for-price" strategy to find a balance between product prices and market share.

"After our own inspection, there has been no significant price change in our products, and the shipment price of the relevant products is normal." Kaiweite's securities department staff said to the Science and Technology Innovation Board Daily reporter.

"A short-term rebound in prices in the near future is also reasonable, after all, these companies have indeed seen marginal improvements in addition to two years of falling stock prices." Market institutions told the Science and Technology Innovation Board Daily reporter regarding future market price trends, stating that the semiconductor cycle has reached the bottom, inventories have returned to a reasonable level, and price increases have gradually spread from electronic components to wafer foundry ends, with marginal price repairs continuing to strengthen.

Cao Bing, head of a Shanghai chip investment firm, told the Science and Technology Innovation Board Daily reporter that the revenue growth of some power semiconductor companies had begun to show an upward trend, but it may take until the end of this year or the first half of next year for a significant rebound in performance. However, whether business performance rebounds or not also depends on changes in market supply and demand and raw material costs, and has a certain degree of uncertainty.

In terms of business performance, Kaiweite achieved operating revenue of 214 million yuan in 2023, a year-on-year decrease of 9.19%; achieved a net profit of 17.795 million yuan, a year-on-year decrease of 70.89%. In the first quarter of 2024, the company achieved operating revenue of 22.313 million yuan, a year-on-year decrease of 63.54%; net profit flipped from profit to loss.

Regarding the decline in business performance, Kaiweite said that its business performance is greatly affected by the prosperity of the power semiconductor industry and there is a risk of cyclical fluctuations.