Core Viewpoint - The company Yangjie Technology (300373) is expected to achieve significant profit growth in the first half of 2025, driven by strong performance in the semiconductor industry and ongoing product optimization [2][3]. Financial Performance - The company forecasts a net profit attributable to shareholders of 5.52-6.37 billion yuan for H1 2025, representing a year-on-year increase of 30%-50% [2]. - The expected net profit after deducting non-recurring gains and losses is projected to be 5.14-5.98 billion yuan, with a year-on-year growth of 21.56%-41.67% [2]. - For Q2 2025, the company anticipates a net profit of 2.79-3.64 billion yuan, showing a year-on-year increase of 14.32%-49.10% and a quarter-on-quarter growth of 2.33%-33.46% [2]. Market Expansion and Product Development - The company is expanding its market presence with the "MCC" and "YJ" brands, targeting the international market and competing with leading companies like Onsemi [3]. - Ongoing construction of its subsidiary in Vietnam aims to enhance overseas market penetration and improve overall gross margins [3]. - The planned acquisition of 100% equity in Better Electronics will allow the company to enter the power electronics protection components market, leveraging synergies with existing downstream customers [3]. Product Matrix and Future Outlook - The company is focusing on a diverse range of products in the automotive electronics sector, with a complete lineup in traditional power diode products [3]. - The investment in a SiC factory is expected to yield products applicable in AI server power supplies, new energy vehicles, photovoltaics, charging piles, energy storage, and industrial power supplies by 2024 [3]. - The company has developed in-vehicle SiC modules, which have garnered interest from several Tier 1 suppliers and end vehicle manufacturers, with full-scale production expected to commence in Q4 2025 [3]. Profit Forecast and Ratings - The projected net profits for 2025, 2026, and 2027 are 12.78 billion, 15.36 billion, and 18.07 billion yuan, respectively, with year-on-year growth rates of 27.51%, 20.20%, and 17.62% [3]. - The current stock price corresponds to price-to-earnings ratios of 23, 19, and 16 for the years 2025, 2026, and 2027 [3]. - The company maintains an "overweight" rating due to its continuous improvement in product matrix and focus on the automotive electronics sector, benefiting from industry stabilization [3].

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [5] Core Views - The company is expected to achieve a rapid growth in net profit for the first half of 2025, with a projected increase of 30%-50% year-on-year, driven by the continuous improvement of its product matrix and the favorable conditions in the semiconductor industry [7] - The company is focusing on high-value new product development, enhancing its competitive edge, and expanding its market presence through both organic growth and acquisitions [7] - The automotive electronics sector is anticipated to be a significant growth area, with the company developing SiC modules for electric vehicles and gaining traction with major Tier 1 suppliers [7] Financial Summary - Revenue projections for the company are as follows: - 2023: 5,410 million RMB - 2024: 6,033 million RMB (11.53% YoY growth) - 2025E: 7,061 million RMB (17.03% YoY growth) - 2026E: 8,402 million RMB (19.00% YoY growth) - 2027E: 9,794 million RMB (16.57% YoY growth) [6] - Net profit forecasts are: - 2023: 924 million RMB - 2024: 1,002 million RMB (8.50% YoY growth) - 2025E: 1,278 million RMB (27.51% YoY growth) - 2026E: 1,536 million RMB (20.20% YoY growth) - 2027E: 1,807 million RMB (17.62% YoY growth) [6] - Earnings per share (EPS) estimates are: - 2024: 1.84 RMB - 2025E: 2.35 RMB - 2026E: 2.83 RMB - 2027E: 3.33 RMB [6] Market Performance - As of July 25, 2025, the closing price of the company's stock is 54.61 RMB, with a total market capitalization of approximately 29,672.22 million RMB [3][4]