On Tuesday, Nomura/Instinet adjusted its monetary outlook for Hangzhou Silan Microelectronics Co Ltd (600460:CH) shares, elevating the worth goal to RMB18.00 from the earlier RMB17.00, whereas the inventory’s ranking stays at Impartial.
The revision follows the corporate’s second-quarter monetary outcomes and a subsequent assembly with buyers and analysts on Sunday, August 19, 2024.
Silan Microelectronics reported a second-quarter lack of CNY10 million, which was unexpectedly decrease than the projected web revenue of CNY176 million in line with Bloomberg consensus.
The loss was attributed to a decline in gross revenue margin, which dropped to 18.0% from 22.5% in the identical interval the earlier 12 months and 22.1% within the first quarter of 2024. The corporate additionally confronted an asset impairment loss, and monetary bills contributed to the loss.
Regardless of the reported loss, Silan Microelectronics’ income elevated 17% 12 months over 12 months to CNY2.8 billion. This determine surpassed the consensus estimate by 3%, which had anticipated revenues of CNY2.7 billion.
The expansion was pushed by notable will increase within the firm’s energy IC and LED companies, which noticed year-over-year will increase of 29% and 33%, respectively. Nevertheless, the ability machine enterprise noticed a extra modest development of 4% year-over-year.
Trying forward, Silan Microelectronics’ administration has indicated restricted draw back dangers for IGBT costs and gross margins within the second half of 2024. Nonetheless, they don’t anticipate near-term enhancements in common promoting costs because of aggressive pressures from abroad markets.
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