Discover the latest financial outlook for Hangzhou Silan Microelectronics Co Ltd (600460:CH) as Nomura/Instinet adjusts its price target to RMB18.00, up from RMB17.00, while maintaining a Neutral rating.
After evaluating the company's second-quarter financial results and engaging with investors and analysts on August 19, 2024, the revision was made.
Despite reporting a second-quarter loss of CNY10 million, lower than the expected net profit of CNY176 million, Silan Microelectronics experienced a 17% increase in revenue year over year to CNY2.8 billion.
The growth was primarily driven by significant improvements in the power IC and LED businesses, with respective year-over-year increases of 29% and 33%. However, the power device business only saw a 4% growth.
Looking ahead, the management anticipates limited downside risks for IGBT prices and gross margins in the second half of 2024. However, they do not foresee immediate improvements in average selling prices due to competitive pressures from overseas markets.
Analysis:
This article provides insights into the financial performance of Silan Microelectronics and the market's response to their recent results. Despite a reported loss, the company managed to achieve impressive revenue growth driven by specific business segments. The management's outlook for the future indicates potential challenges but also highlights areas of opportunity. Investors should carefully consider these factors when making decisions regarding their investment in Silan Microelectronics.