National Silicon Industry Group Co Ltd Class A

688126: XSHG (CHN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	¥2.50	Kljzy	Srlr

National Silicon Earnings: Profitability Bottoms; Colossal Investments Haunt Outlook

Phelix Lee

Aug 30, 2024

We maintain our fair value estimate for National Silicon Industry Group of CNY 3.70 per share after the firm reported disappointing second-quarter results. Our long-term view of the stock being overvalued has not changed as the company plans to spend heavily on expansions to build a self-sufficient wafer supply for Chinese semiconductor manufacturers, regardless of short-term profitability. Taiwan peers GlobalWafers and its parent Sino-American Silicon Products remain our picks in the sector.

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