Sou Hu Cai Jing·2025-10-22 01:21Core Viewpoint - The company, Jing Sheng Co., Ltd. (688478), is experiencing challenges in its financial performance but is optimistic about future growth in the silicon carbide industry, particularly with the shift towards 8-inch equipment and new applications in emerging markets [1][6]. Group 1: Company Performance - In the first half of 2025, the company's main revenue was 158 million yuan, a year-on-year decrease of 20.29% [6]. - The net profit attributable to shareholders was -7.45 million yuan, a decline of 121.29% year-on-year [6]. - The gross profit margin was reported at 3.87%, indicating significant pressure on profitability [6]. Group 2: Market and Industry Trends - The demand for 6-inch silicon carbide substrates is declining, while there is a positive trend in orders for 8-inch silicon carbide single crystal furnaces compared to the second half of last year and the first half of this year [2]. - The silicon carbide industry is expected to grow due to its applications in electric vehicles, photovoltaic inverters, and rail transportation, with cost reductions further driving adoption [3]. - The company is currently collaborating with clients on small-scale production of 12-inch silicon carbide, which has not yet reached mass production [4]. Group 3: Future Outlook - The company anticipates that as the photovoltaic business's proportion decreases, the gross profit margin will improve in the second half of the year and significantly enhance in the following year [5]. - The company is focusing on maintaining market share and acquiring key customers, adjusting product prices based on market conditions [5]. - Recent institutional ratings indicate a buy recommendation, reflecting some confidence in the company's future performance [7]. Group 4: Financial Projections - Forecasts for net profit in 2025 range from 54 million to 85 million yuan, with projections for 2026 and 2027 showing potential growth to 99 million and 131 million yuan, respectively [9]. - The stock has seen a net inflow of 202 million yuan in financing over the past three months, indicating increased investor interest [9].