Hoshine Silicon(SH:603260) Xin Lang Cai Jing·2025-09-04 10:32Core Viewpoint - The company reported significant declines in revenue and profit for the first half of 2025, with a notable loss in Q2 due to falling industrial silicon prices and operational challenges [1][2]. Financial Performance - In H1 2025, the company achieved revenue of 9.775 billion yuan, down 26.34% year-on-year, and a net profit attributable to shareholders of -397 million yuan, a decrease of 140.60% year-on-year [1]. - Q2 2025 saw revenue of 4.548 billion yuan, a decline of 42.11% year-on-year and 13.02% quarter-on-quarter, with a net profit of -657 million yuan, down 245.87% year-on-year and 352.93% quarter-on-quarter [1][2]. - The gross profit margin was 7.92%, down 15.38 percentage points year-on-year, while the net profit margin was -4.23%, down 11.41 percentage points year-on-year [1]. Market Conditions - The industrial silicon price significantly decreased in Q2 2025 due to weak raw material prices and macroeconomic pessimism, leading to a decline in sales volume and prices [2]. - The company sold 214,600 tons of industrial silicon in Q2, down 47.2% year-on-year and 17.4% quarter-on-quarter, with an average selling price of 7,337.8 yuan per ton, down 36.2% year-on-year [2]. Industry Trends - The "anti-involution" policy is expected to alleviate the downward price trend in the market, benefiting the company as it focuses on eliminating low-price competition and phasing out outdated capacity [3]. - The supply-demand dynamics are gradually improving, with expectations for industrial silicon prices to stabilize and recover as market demand rebounds [3]. Strategic Initiatives - The company is leveraging its advantages in industrial chain collaboration to strengthen its position as a dual leader in industrial silicon and organic silicon [4]. - Efforts include reducing energy consumption in industrial silicon production and enhancing product quality through technological upgrades and process optimization [4]. - New product developments, such as amino silicone oil and organic silicone emulsions, are positioned to meet international standards and cater to various industries [4]. Future Outlook - Revenue projections for 2025-2027 are estimated at 23.082 billion, 29.376 billion, and 31.269 billion yuan, with net profits of 1.019 billion, 2.121 billion, and 2.677 billion yuan respectively [4]. - The company maintains a "buy" rating based on its industry leadership and growth potential despite current challenges [4].