2024年利润承压，旨在成为基于平台的参与者

2024Profit Strained, Aiming toBecome A Platform-based Player BUY88.97 Huatai Research Annual Results Review 18 May 2025│China (Mainland) Semiconductor AnalystXIE ChunshengSAC No. S0570519080006SFC No. BQZ938xiechunsheng@htsc.com+(86) 21 2987 2036 In2024,StarPowerrecordedrevenueofRMB3,391mn(-7.44%yoy)andattributable net profit (NP) of RMB508mn (-44.24% yoy), below our expectation ofRMB630mn. In 1Q25, revenue reached RMB919mn (+14.22/-5.84% yoy/qoq) andattributable NP was RMB104mn (-36.22/+22.94% yoy/qoq). Thefull-year revenuedecline in 2024 was mainly due to the negative impact of price cuts in thedownstream NEV market and inventory destocking in the PV sector, in our view.Meanwhile, the pressure from increased depreciation following new production linecompletions, coupled with rising R&D investment in new business areas, furtherweighed on profitability. In 2025, the company plans to continue optimizing itsproduct mix, boosting shipments of automotive-grade IGBT modules and SiCmodules, while actively expanding into new areas such as IPM and MCU. Weremainfocusedonthecompany'sproductstructureandoverseasmarketexpansion progress in 2025. Maintain BUY with ourtarget price of RMB88.97. AnalystZHANG YuSAC No. S0570523090002SFC No. BSF274zhangyu@htsc.com+(86) 10 6321 1166 AnalystTANG ShiheSAC No. S0570524090007SFC No. BUQ838tangshihe@htsc.com+(86) 10 6321 1166 Key data 2024 & 1Q25 review: destocking in industrial and PV sectorsIn 2024, IGBT modules accounted for over 90% of total revenue. By segment, revenuecontributionsfromindustrial/newenergy/homeappliancesstoodat32/59/8%, with yoy changes of-14/-6.8/+34.2%, respectively. 1) The NEVmarketremained resilient, with revenue up 26.7%, vehicle installations exceeding 3mnunits, and shipments rising over 40%, including mass deliveries to leadingtier-1customersinEurope.Thecompanyalsoachievedvehicleinstallationsofself-developed 6-inch SiC MOSFET chips and modules. 2) Industrial and PVdemand remained under pressure, but since 2H24, destocking of PV discretedeviceshasnearedcompletionandshipmentsofstring-typeproductshaveramped up rapidly. As of 1Q25, fixed assets/construction-in-progress stood atRMB3.08/2.67bn, respectively. With new production lines in the ramp-up phase,depreciationpressureincreased,andcombinedwithrisingR&Dfromnewbusiness expansion,StarPower’sNPremained under pressure. Source:Wind 2025 outlook: SiC ramp-up + globalization breakthroughLooking ahead to 2025, the company will focus on: 1) automotive -grade powermodules: with industry-wide price cuts narrowing, the company’s joint project withChanganAutofora1.8mn-unitautomotive-grademoduleproductionlineinChongqing has entered capping stage, and overseas customer programs areprogressing steadily;2) PV and energy storage: the company’s next-generationIGBT modules based on 7th-gen micro-groove Trench Field Stop technology arepoisedto achievebatchsales in PV and storage applications; 3) home appliances:the company acquired an 80% stake inMSCT, a company with a decade-longpresence in the white goods sector, to build an integrated intelligent power solutionplatform. The company is also stepping up investments in IPM and high-specMCUsforindustrialandautomotiveapplications,aimingtobecomeaplatform-based semiconductor player. Target price of RMB88.97;maintain BUYGiven the continued intensity of downstream competition, we cut our 2025/2026 revenue forecasts by 9/12% to RMB4,078/4,851mn, and introduce a 2027 revenueestimate of RMB5,684mn. Considering the company's continued R&D investmentand rising depreciation, we lower our 2025/2026 attributableNPforecasts by 24/22%to RMB620/810mn, and introduce a 2027 forecast of RMB1.04bn. We value thestock at 34.4x 2025E PE (in line with its peers’average onWind consensus),for ourtarget price of RMB88.97 (previous:RMB108.45, based on 32x 2025E PE, reflectingvaluationupliftdriven by liquidity in the semiconductor sector). Risks:disappointingperformanceofSiCproductionlinesandNEVsales;intensified competition for IGBTs. Source:Wind, Huatai Research Source:Wind, Huatai Research Full financials Disclaimers Analyst CertificationI/We, XIE Chunsheng, ZHANG Yu, TANG Shihe, hereby certify that the views expressed in this report accurately reflect the personal views of the analyst(s) about the subject securities orissuers; and no part of the compensation of the analyst(s) was, is,or will be, directly or indirectly, related to the inclusion of specific recommendations or views in this report. General Disclaimers and DisclosuresThis research report has been prepared by Huatai Financial Holdings (Hong Kong) Limited (hereinafter referred to as “HFHL”).The information herein is strictly confidential to the recipient. This report is intended for HFHL, its clients and associatedcompanies. Any other person shall not be deemed a client of the Company merely from his or her receipt of this report. This report is based on information deemed reliable and publicly available by HFHL, b