Thinkon Semi(SH:688233) China Post Securities·2024-03-31 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the benchmark index within the next six months [2][17]. Core Views - The company is currently facing short-term performance pressure due to the semiconductor industry's downturn, with a significant revenue decline of 74.96% year-on-year, resulting in a revenue of 135 million yuan for 2023 [14][17]. - Despite the current challenges, the company is expanding its production capacity for large-diameter silicon materials and optimizing its product structure, which is expected to enhance performance as the market cycle improves [16][17]. - The silicon components business is anticipated to open a second growth curve for the company, with significant market potential in the domestic silicon components market, projected to reach 1.8 billion yuan annually [16][17]. Summary by Sections Company Overview - The company reported a total market capitalization of 34 billion yuan and a circulating market capitalization of 32 billion yuan [1]. Financial Performance - In 2023, the company achieved a revenue of 135 million yuan, down 74.96% year-on-year, and a net loss attributable to shareholders of 69.11 million yuan, a decline of 143.70% [14][20]. - The company expects revenues to recover to 232 million yuan in 2024, with a projected net profit of 11.74 million yuan [20][17]. Product and Market Development - The company is focusing on expanding its large-diameter silicon materials production, which is crucial for integrated circuit etching, and has a competitive edge in technology and quality [14][16]. - The silicon components segment is growing rapidly, with a revenue of 37.64 million yuan in 2023, and is expected to capture a larger market share as domestic demand increases [16][17].