Movement Alert|SICC Falls 5.64% in Regular Trading, Weak Earnings Expectations and Profit-Taking Ahead of Interim Results

Market Focus08-18

On August 18, SICC fell 5.64% in regular trading, trading at HKD 79.15 per share, with turnover of HKD 109 million. The decline comes on the eve of the company's interim results release scheduled for August 19.

On the news front, market consensus estimates project quarterly revenue of approximately RMB 4.87 billion, representing a 15.06% year-over-year decline. Adjusted earnings per share are expected to fall 38.86% YoY, while EBIT is anticipated to drop 62.80% YoY, with institutional views remaining conservative. Additionally, a first-time coverage report from a rating agency indicated that the company's current market capitalization exceeds its intrinsic value based on dynamic and DDM valuation models.

The stock had accumulated gains of nearly 45% in the preceding month, driven by optimism around 8-inch SiC substrate volume ramp and profitability recovery expectations. The combination of subdued earnings forecasts and elevated valuation triggered concentrated profit-taking pressure ahead of the results announcement.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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