高盛-中國半導體評級更新-0715

11July2024|9:34PMHKT

ChinaSemis

Valuationresettonear-termPE;preferNauraandACMR;downgradingSananandNSIGtoSell

Were-assessvaluationsforourChinaSemiconductorcoverageasweseegreater

AllenChang

+852-2978-2930|allen.k.chang@

uncertaintyunderamacroslowdownwithlowerlong-termvisibilityandcontinued

GoldmanSachs(Asia)L.L.C.

geopoliticaltensions.Weresetourvaluationmethodologyfor15stocksinour

VerenaJeng

+852-2978-1681|verena.jeng@

coveragefromlong-termdiscountedPEto2025EPE,tobetterre?ectthenear-term

GoldmanSachs(Asia)L.L.C.

dynamics.Withthisreset,wedowngradeSananandNSIGfromNeutraltoSell,

XuanZhang

+852-2978-1478|xuan.zhang@

andcutStarpower/KingsemiTPsby32%/30%whilemaintainingNeutralon

GoldmanSachs(Asia)L.L.C.

both.

TingSong

+852-2978-6466|ting.song@GoldmanSachs(Asia)L.L.C.

WeturnmorecautiousonSanangiven1)theongoingdemanddepressionin

traditionalLED,2)slowerrecoveryofsmartphonePAmarketonthebackof

saturatedsmartphoneenddemand,and3)increasingpricingpressureinthe

automotivesupplychainimpactingitspowersemisbusiness.ForNSIG,ourrating

downgradeisdrivenby1)aslowerrevenuerecoverypacein2024E(factoringin

worse-than-expected1Q24results),2)downwardASPtrendandrisingdepreciation

continuingtoweighonrevenuesandGM,and3)stretchedvaluationswiththe

sharestradingat>100x12mforwardP/Evspeers(15xto66x).

Inthisreport,wealsoreiterateoursectorview,stockideas,and2H24outlook.WecontinuetopreferSPEinChinaSemis,giventhehighervisibilityinChinamature

nodes’capacityexpansion,aswellasproducts/customersexpansion,thatbetteroffsetthemacrouncertainties.Buy:(1)SPE:Naura(onCL),ACMR,ASMPT,

_

Accotest;(2)Fabless:Willsemi,Montage,SGMicro,Maxscend,Vanchip;(3)

Foundry:HuaHong;(4)SiCsubstrate:SICC.Readmore:NauraaddonCL,StarpowerdowngradetoNeutral,VerisilicondowngradetoNeutral.

GoldmanSachsdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthe?rmmayhaveacon?ictofinterestthatcouldaffecttheobjectivityofthis

report.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.ForRegACcerti?cationandotherimportantdisclosures,seetheDisclosureAppendix,orgoto

/research/hedge.html.Analystsemployedbynon-USaf?liatesarenotregistered/quali?edasresearchanalystswithFINRAintheU.S.

GoldmanSachsChinaSemis

Exhibit1:Chinasemisvaluationresetto2025EPEfromlong-termdiscountedPE

80

70

TPimplied2025EPE

60

50

40

30

20

10

DowngradetoSell

SMIC-A

NSIG

SGMicro

TPcut30%

AMEC

Montage

Accotest

Anji

KingsemiNaura

SMIC-HACMR

Starpower

WillSemiHuaHong

Sanan

DowngradetoSell

TPcut32%

-

0%10%20%30%40%50%60%70%80%90%100%

2026NIYoYandOPM

Source:GoldmanSachsGlobalInvestmentResearch

Exhibit2:Resetvaluationto2025PEfromlong-termdiscountedPE;Sanan/NSIGdowntoSell;Starpower/KingsemiTPcut32%/30%

US$manalystOLDNEWCHGOLDNEW10-Jul-24%

CompanyTickerMktcapCoveringTargetpriceRatingLastcloseUpside

Sanan600703.SS7,820AllenChang15.6010.80-31%NeutralSell12-9%

NSIG688126.SS5,179AllenChang16.7013.36-20%NeutralSell15-10%

Starpower603290.SS2,563AllenChang130.7188.96-32%NeutralNeutral7919%

Kingsemi688037.SS1,656AllenChang144.00100.15-30%NeutralNeutral8419%

Accotest688200.SS1,600AllenChang136.00135.00-1%BuyBuy9247%

ACMRACMR1,600AllenChang39.0039.000%BuyBuy2463%

AMEC688012.SS12,202AllenChang177.00177.000%NeutralNeutral14225%

AnjiMicro688019.SS2,200AllenChang140.77144.002%NeutralNeutral11327%

HuaHong1347.HK3,521AllenChang30.0030.000%BuyBuy2332%

Montage688008.SS9,000AllenChang80.0080.000%BuyBuy6132%

SGMicro300661.SZ4,788AllenChang102.90102.600%BuyBuy7635%

SMIC0981.HK17,695AllenChang21.4021.400%NeutralNeutral1820%

SMIC688981.SS50,184AllenChang53.7053.700%NeutralNeutral4812%

WillSemi603501.SS15,929AllenChang131.00132.701%BuyBuy10427%

Source:GoldmanSachsGlobalInvestmentResearch

Re-assessingvaluation

_

OurtargetPEmultiplesforSanan,NSIG,Accotest,AMEC,Anji,HuaHong,

Kingsemi,Montage,Naura,SGMicro,SMIC,StarpowerandWillSemiarederivedfromtherelationshipbetweentradingP/Eandforward2-yearearningsgrowthoftheirrespectivesegment.WeseethemarketmainlypricingChinatechnologynameson

growthpotential.ForACMR,wederivethetargetP/EmultipleviaPEG&M(i.e.the

relationshipbetweenPEandforwardearningsgrowthaswellasOPM)ofitspeers,asthecompany’sOPMof19%in2025Eismuchlowerthanglobalpeers,andwethink

thisshouldbetakenintoaccountwhendecidingthetargetmultiple.

Underourupdatedvaluationframework,wecutourtargetpricesforSanan,NSIG,

Starpower,Kingsemiby31%/20%/32%/30%.Fortheremainingnames,wekeeptargetpricechangeswithin2%withourviewsonthemlargelyunchangedforthenext12months.

11July20242

GoldmanSachsChinaSemis

Valuationandearningsrevisionsnapshot

Exhibit3:ChinasemisearningsandtargetPEmultiplerevisions

Company

Sanan

NSIG

StarpowerKingsemiAccotestACMR

AMEC

AnjiMicroHuaHongMontageNaura

SGMicroSMIC

SMIC

WillSemi

Ticker

600703.SS688126.SS603290.SS688037.SS688200.SSACMR

688012.SS688019.SS1347.HK

688008.SS002371.SZ300661.SZ0981.HK

688981.SS603501.SS

2024E

-4%-1%-7%-9%0%0%1%1%0%0%0%0%0%0%0%

Revenueschange

2025E

-4%-2%-9%-8%-8%0%1%2%0%0%0%0%-1%-1%0%

2026E

-7% -6%-10% -2% -6% 0% 1% 3% 0% 0% 1% 0% -1% -1%0%

2027E

na-8% na0%-7% na na3%0%0% na0%-3%-3%0%

2028E

na na na na na na na na0% na na na-4%-4%na

2024E

-18%-37%-12%-13% 0% 0% 1% 8% 0% 0% 0% 0%-26%-26%0%

Net2025E

-27%-13%-14%-22%-13% 0% 2%11% 0% 0% 0% 0%-26%-26%0%

incomechange

2026E

-30% -8%-17%-14%-11% 0% 2%13% 0% 0% 2% 0%-17%-17%0%

2027E

na-28% na-12%-11% na na na 0% 0% na 0%-22%-22%0%

2028E

na na na na na na na na 0% na na na-22%-22%na

TPimpliedOLD

24

73

22

34

29

22

39

33

23

35

30

53

19

52

31

2025EPENEW

23

68

17

30

33

22

38

31

24

35

30

53

26

70

31

multipleCHG

-6% -6%-21%-10%14% 0% -2% -7% 4% 0% 0% 0%37%34%0%

12Mforward-1std

33

73

20

40

25

8

43

32

11

34

28

43

10

31

25

PEinpastavg

40

217

65

78

40

22

53

49

20

46

47

50

19

54

33

3years+1std

46

361

109

116

54

37

64

66

29

58

65

57

27

78

41

Source:GoldmanSachsGlobalInvestmentResearch

Exhibit4:Chinasemisearningsrevisions(continued)

Company

Sanan

NSIG

StarpowerKingsemiAccotestACMR

AMEC

AnjiMicroHuaHongMontageNaura

SGMicroSMIC

SMIC

WillSemi

Ticker

600703.SS688126.SS603290.SS688037.SS688200.SSACMR

688012.SS688019.SS1347.HK

688008.SS002371.SZ300661.SZ0981.HK

688981.SS603501.SS

2024E

34%17%35%40%39%31%31%33% 0%78%39%37%21%21%31%

RevenuesYoY(OLD)

2025E

31%30%29%35%48%33%28%26%36%66%29%37%28%28%24%

2026E

24%32%27%17%19%29%25%23%17%43%13%29%18%18%23%

2027E

na29% na17%11% na na21%14%34% na28%19%19%22%

2028E

na na na na na na na na11% na na na13%13%na

2024E

29%16%26%27%39%31%32%34% 0%78%39%37%21%21%31%

RevenuesYoY(NEW)

2025E

31%28%26%37%36%33%29%27%36%66%29%37%27%27%24%

2026E

19%27%25%25%20%29%25%24%17%43%15%29%18%18%23%

2027E

na26%20%19%11% na na21%14%34%12%28%16%16%22%

2028E

na na15% na na na na na11% na na na13%13%na

2024E

746% 61% 25% 42% 48% 6% 4% 8%-50%216% 42% 97%-34%-34%491%

NetincomeYoY

2025E

150%107% 27% 65% 71%42%51% 25%102%84% 38% 65%90%90%58%

2026E

30%67%24%21%20%38%34%30%39%48%15%53%24%24%46%

(OLD)

2027E

na63% na20%12% na na na17%34% na48%27%27%33%

2028E

na na na na na na na na20% na na na28%28%na

2024E

186% 2% 10% 22% 48% 6% 6% 17%-50%216% 42% 97%-51%-51%491%

NetincomeYoY

2025E

123%183% 24% 49%49% 42% 52% 27%102%84% 39% 65% 89% 89%58%

2026E

25%78%20%33%24%38%34%33%39%48%18%53%39%39%46%

(NEW)

2027E

na27%26%24%12% na na na16%34%11%48%21%21%33%

2028E

na na20% na na na na na20% na na na28%28%na

Source:GoldmanSachsGlobalInvestmentResearch

Exhibit5:NewtargetPEmultiplevs.tradingrange

Company

Sanan

NSIG

_

StarpowerKingsemiAccotestACMR

AMEC

AnjiMicroHuaHongMontageNaura

SGMicroSMIC

SMIC

WillSemi

Ticker

600703.SS

688126.SS

603290.SS

688037.SS

688200.SS

ACMR

688012.SS

688019.SS

1347.HK

688008.SS

002371.SZ

300661.SZ

0981.HK

688981.SS

603501.SS

ReasonsfortargetPEmultipleat/higher/below3-yearavg.PE

Below,reflectingourconcernsonsaturatedLEDandsmartphonemarket,alongwithcarOEMsinfiercecompetitionweightonSiC.Below,reflectingourcautiousviewonitsstretchedvaluationvs.itsforwardyearearningsgrowthandglobalpeers'tradingrange.Below,reflectingslowerearningsgrowthaheadonfiercecompetitioninpowersemis

Below,reflectingaslowerearningsgrowthaheadonsoftdemandfrombackendprocessandcompoundsemis

Below,reflectingOSATclients'slowerspendinginforwardyearsandthecompany'sslowergrowthaheadvs.historicalavg.TargetP/Eisinlinewithitspast3-yearavg.P/Eat22x

Below,reflectingnormalizingearningsgrowthahead

Below,consideringitsrevenuesexposuretoadvancednodescarriesuncertaintiesundergeopoliticaltensionBelow,reflectingcapacityexpansionincomingyearsweightonmargins

Below,consideringitsrevenuesexposuretooverseasandAIcarriesuncertaintiesundergeopoliticaltensionBelow,reflectingnormalizingearningsgrowthahead

Above,reflectingacceleratingearningsgrowthaheadfromdowncyclein2021-23AAbove,reflectingacceleratingearningsgrowthaheadfromdowncyclein2021-23AAbove,reflectingacceleratingearningsgrowthaheadfromdowncyclein2021-23ATargetPEinlinewithits3YavgPE

Source:GoldmanSachsGlobalInvestmentResearch

11July20243

GoldmanSachsChinaSemis

Exhibit6:Reasonsforearningsrevision

Company

Sanan

NSIG

Starpower

Kingsemi

AccotestACMR

AMEC

AnjiMicro

HuaHongMontage

Naura

SGMicroSMIC

WillSemi

Ticker

600703.SS

688126.SS

603290.SS

688037.SS

688200.SSACMR

688012.SS

688019.SS

1347.HK

688008.SS

002371.SZ

300661.SZ

0981.HK/688981.SS

603501.SS

Reasonsforearningsrevision

1Qrevwasup22%,recoveringfromdemanddowncycle,whileNIwasstilldown44%YoYondepressedgrossmarginamidintensive

competitions.1Q24rev'sgrowthwassimilarto4Q23,despitelowerbase,showingthatSanan'srecoverycouldbeslowerthanourprevious

expectation.Wereviseddownrevenuesin2024-26Eby4%/4%/7%onsluggishLEDmarket,saturatedPAdemandduetoslowgrowthof

smartphonesandweakerSiCbusinessascarOEMsareunderfiercepricingpressures.WereviseddownGMby0.5/2.4/1.6pptsgivenongoingcompetitionsandlowUTrate,andreducednetincomeby18%/27%/30%in2024-26E.

1Q24revdeclined10%YoYandGPMrecordedat-7.7%duetoASPdeclineandincreaseddepreciation,missingourestimatesof+2.4%,

showingourpreviousassumptionsinrevandmarginscouldbetooaggressive.Wereducerevenuesin2024-27Eby1%/2%/6%/8%reflectingourconcernonweakdemandandASPdecline.Webelieveittakestimeforcustomerstoreducetheircurrentinventorylevelandwealso

factorinslowerrecoveryof8’’wafers.WerevisedownGPin2024-27Eby4%/2%/6%/19%onlowerASPandhigherdepreciationandourOPisreviseddownby34%/7%/12%/32%in24-27EduetooperatingdeleverageandhigherR&Dexpenses.Asaresult,ourNIwasreviseddownby37%/13%/8%/28%in2024-27E.

Wereducerevenuesin2024-26Eby7%/9%/10%reflectingourconcernonpricingpressureduetohighcompetitionamongdownstreamEV

companies.WerevisedownGPin2024-26Eby9%/10%/11%onlowerrevandpricingpressureandourOPisreviseddownby14%/15%/17%in24-26EduetohigheropexratioonincreasedR&Dspending.Asaresult,ourNIwasreviseddownby12%/14%/17%in2024-26E.

1Q24revdeclined15%YoY,missingourestimatesof+36%YoY,impactedbychangeinexistingordermixandproductionanddeliverycycles.Wereducerevenuesin2024-27Eby9%/8%/2%/0%reflectingourconcernonsoftdemandfrombackendprocessandcompoundsemis.WerevisedownGPin2024-27Eby9%/8%/2%/0%onlowerrevandourOPisreviseddownby16%/18%/10%/8%in24-27Eduetooperatingdeleverage.Asaresult,ourNIwasreviseddownby14%/22%/14%/12%in2024-27E.

Reviseddownrevenuesin2025/26Eonlowershipmentof8200testingequipmentconsideringtheproductentersintothelatecycle;RevisedupOpexratioduetosmallerrevenuesscale

Nochangeonearnings

Raisedrevenuesby1%/1%/1%in2024-26Eonhigherexpecationonetcherdrivenbycontinuouscapacityexpansionsoflocalcustomers.NochangeonGMandopexassumptionsandNetincomerevisedupby1%/2%/2%.

Revisedupearningsin2024-26EonhigherrevenuesofnewCMPslurryproductandwetchemicalsolutions,withcustomerqualificationgettingtoend;ReviseddownOpexratioduetorevenuesbacktostronggrowthmomentumwithscaleadvantages,andlowersellingexpensesasAnjimainlyfocusesontheexistingclients

Largelyunchanged

Nochangeinearnings

Earningslargelyunchangedin2024-25Eandraise2026Enetincomeby2%onbetteroutlookonlong-termmaturenodecapacityexpansionsinChina.WeexpectdemandforlocalSPEwillremainhighinlong-termgiventhere'sstilllargedemandoflocalizedproduction.

Nochangeinearnings

Weslightlyreviseddownrevenuesby0%/1%/1%in2024-26Easweexpectpricingpressuretolastlonger;reviseddownNetincomeby26%/26%/17%in2024-26Eduetomoreconservativeoutlookongrossmargin,whichwillbecontinuouslyimpactedbythesteadyincreaseofD&Aasthecompanyaddscapacityasplanned.

Nochangeinearnings

Source:GoldmanSachsGlobalInvestmentResearch

_

11July20244

GoldmanSachsChinaSemis

2H24outlook

Exhibit7:Chinasemis:2H24outlook

Company

Ticker

2H24outlook

Sanan

600703.SS

TraditionalLEDbusinesstoremainsluggishandhighlycompetitive.RFPAundersaturatedsmartphonemarket;SiCunderfiercecompetitionamongcarOEMs;high-endproducts(e.g.mini/microLED,high-endLED)rampupbutstillsmall.

NSIG

688126.SS

Ongoinginventorydigestion;8-inchwafersinslowrecovery;ASPcontinuestounderpressure;demandremainssoft.

Starpower

603290.SS

Fiercepricingcompetitioncontinuesin2H24inpowersemis

Kingsemi

688037.SS

Backendprocessandcompoundsemisrecoverycouldremainslowin2H24

Accotest

688200.SS

Mildrecoveryofclientdemandin2H24,supportedbyimprovingbookingin1Q/2Q24

ACMR

ACMR

2024revenuesgrowthguidedat17%~25%YoY,positiveonfab,IDM,OSATclientdemandwithcapacityexpansion,andcompany'sproductexpansiontotrackeretc.isontrack

AMEC

688012.SS

Revenuestoup+44%/+20%YoYin3Q/4QdrivenbyChinamaturenodesemiscapex.Productlineexpansionstodepositiontoolswillstarttosupportrevenues,andtheincreasingbalanceofunrecognizedshipmentalsoprovidevisibilityofgrowthforthefollowingquarters.

AnjiMicro

688019.SS

Positiveon2H24growthdrivenbyincreasingcustomertractionandnewproductexpansion,andseeAnjioutperformspeerswithcomprehensiveCMPslurrysolutionandknow-how

HuaHong

1347.HK

Revenuesandprofitsingradualrecoveryonimprovingloading.However,weremainconservativeonpricingandgrossmargingivencontinuouscapacityexpansionsofboththecompanyandsmallerpeersintheindustry.

Montage

688008.SS

Expectcompany'sDDR5penetrationratetoreachover50%byQ2,and70%+byendof4Q24,supportingstrongrevenuesgrowthandsustainedmargin

Naura

002371.SZ

Revenuessustain+27%/+34%YoYgrowthin3Q/4Qonstrongorderbacklog;grossmarginstablesgivensimilarproductmix

SGMicro

300661.SZ

PMICandsignalchainICsforsmartphoneandconsumerelectronicsareimprovingafterinventorycorrection,whileindustrialremainssoft.Pricingwillstillbechallengingin2Hascompetitionremainsintense.

SMIC

0981.HK/688981.SS

UTratesatgradualrecoverybutpricingremainsdepressedasnosignificantturnaroundofenddemand.GrowingD&Aburdenweighingongrossmargin.

WillSemi

603501.SS

Revenuetosustain+25%/+30%YoYgrowthin3Q24/4Q24assupplyconstraintsofproductioncapacitywillgraduallyrelieve.Wealsoexpectmorenewproductlaunchesin2H24tosupportthecompanyinpenetratingmoresmartphoneclients.

Source:GoldmanSachsGlobalInvestmentResearch

Exhibit8:ChinasemisrevenuesYoY:1Q24vs.2023Exhibit9:ChinasemisOPM:1Q24vs.2023

_

ACMR

Montage

Naura

SGMicro

120%100%80%60%40%20% 0%-20%-40%-60%

Kingsemi(TPcut30%):1Q24

deceleratedtonegativeYoY

Starpower(TPcut32%):

1Q24deceleratedto+3%YoYvs.+35%YoYin2023

Sanan(DowntoSell):

1Q24recovering;valuationstretched

AnjiMicro

AMEC

WillSemi

Sanan

SMIC

Starpower

HuaHong

NSIG

Kingsemi

Accotest

1Q24

2023

NSIG(DowntoSell):1Q24negativeYoYremains

AnjiMicro

Montage

Starpower

40%30%20%10% 0%-10%-20%-30%-40%

Sanan(DowntoSell):1Q24OPMturnedpositive;valuationstretched

Starpower(TPcut32%):

1Q24OPMdeclinedto21%(vs.26%in2023)

Naura

AMEC

ACMR

Accotest

SGMicro

WillSemi

SMIC

20231Q24

SMIC

Kingsemi

HuaHong

NSIG

Kingsemi(TPcut30%),NSIG(DowntoSell):1Q24OPMturnednegative

Source:Companydata,GoldmanSachsGlobalInvestmentResearchSource:Companydata,GoldmanSachsGlobalInvestmentResearch

11July20245

GoldmanSachsChinaSemis

Sanan(600703.SS):DowngradingfromNeutraltoSellonintensecompetitionandsoftdemandforLED

WeturnmorecautiousonSananon:(1)aslower-than-expecteddemandrecoveryoftraditionalLEDproducts,impactedbyaprolongedmacrodownturn;(2)softergrowthofPAbusinessasweremaincautiousonglobalsmartphonedemand,whereweexpecttoseeonly3%/4%YoYincreasein2024E/25E(Readmoreaboutourglobalsmartphoneforecast);(3)weakerpowersemis(e.g.SiC)businessasautomotiveOEMsarenowinintensepricingpressure,whichhastransmittedupstreamtopowerdevicessuppliers

likeSanan.1Q24revenueswasup22%YoY(vs.ourexpectationof37%),andgrowthwassimilarto4Q23despitealowerbase,showingthatourpreviousforecaston

recoverywastoooptimistic.

Wechangedourvaluationmethodologyto2025EP/E(fromdiscountedP/Epreviously)duetolowerlong-termvisibility.OurtargetP/Emultipleissetat23x,basedonsectorforwardearningsgrowthvs.P/E(Exhibit10).Withourrevisedearnings,ourtargetprice

isdown31%toRmb10.8.Weseethecurrentvaluationof32xP/EasstretchedgiventheslowrevenuerecoveryanddepressedOPMof12%/13%in2025/26E,vs.30%+in2014-2018beforethedowncycle.Asaresult,wedowngradeSananfromNeutraltoSellwithour12mtargetpriceimplying9%downsidevs.ourcoverageaverageof38%upside.

Keyrisksorwhatwouldmakeusmoreconstructive:

1)Stronger-than-expectedPAbusinessgrowth:wemodelamodestrecoveryof

Sanan’sPAbusinessgivensoftsmartphonedemand.However,ifthemarketturned

aroundfasteronunexpectedcatalysts(suchasmajorupgradesinsmartphonesthat

driveareplacementcycle),orifSanan’sclientsgainmoremarketshare,itcouldhaveapositiveimpactonourestimates.

_

2)Faster-than-expecteddevelopmentprogressinnewtechnology,suchasSiC,

GaN,andMini-/MicroLED:Sananisstillrampingupnewtechnologieswith

continuousproductandcustomerdevelopment.Ifthecompanyexpandsitsproduct

portfoliofasterthanourexpectation,itcouldhelpSanangainmarketsharemorerapidlyandpositivelyimpactourrevenues/marginforecasts.

3)Less/moreseverecompetitionintheLEDmarket:Asthemarketleader,we

expectSanantobene?tifsmallerplayersquittheLEDmarketamidsluggishdemand,decliningpro?tabilityandpricepressure.Lowercompetitioncouldleadtoapositive

impactonSanan’soverallgrowthpro?le.

11July20246

GoldmanSachsChinaSemis

Exhibit10:TargetP/Eat23xisderivedfromP/EandNIgrowthcorrelation

Sanan:23xtargetP/Eagainst25%EPSgrowthin2026E

Exhibit11:Sanan12mforwardP/E

(x)

80

70

60

50

40

30

20

10

Jan-14

Jun-14

0

Nov-14

Apr-15

Sep-15

Feb-16

Jul-16

Dec-16

May-17

Oct-17

Mar-18

Aug-18

Jan-19

Jun-19

Nov-19

Apr-20

Sep-20

Feb-21

Jul-21

Dec-21

May-22

Oct-22

Mar-23

Aug-23

Jan-24

Jun-24

+1stv44x avg32x-1stv20x

UnchangedregressionfromourlastupdateinDec2023

Source:Companydata,GoldmanSachsGlobalInvestmentResearch

Source:Companydata,GoldmanSachsGlobalInvestmentResearch,Re?nitivEikon

Exhibit12:Ourtarget2025EPEto2026ENIYoYandOPMisconsistentwithlocalpeers

Company

Sanan

Starpower

CRMicro

Maxscend

Vanchip

Ticker

600703.SS

603290.SS

688396.SS

300782.SZ

688153.SS

Rating

Sell

Neutral

Sell

Buy

Buy

Currentprice(LCY)

11.81

79.36

38.22

73.77

34.42

TP(LCY)

10.80

88.96

38.90

127.00

54.50

2026ENIYoY

25%

20%

15%

2%

16%

2026EOPM

13%

23%

17%

32%

15%

TPimplied2025EP/E

23

17

24

29

29

TPimpliedPEG&M

0.6

0.4

0.7

0.9

0.9

Source:Companydata,GoldmanSachsGlobalInvestmentResearch

_

11July20247

GoldmanSachs