Hangzhou Silan Microelectronics Co., Ltd. (600460)

Individual Stock Analysis Report　|　Industry: Integrated IDM Semiconductors, Power Semiconductors　|　Report Date: September 13, 2026　|　As of the September 11, 2026 close; certain shareholder data as of June 30, 2026, with technical indicators and market data based on the disclosures in the research notes

This report was automatically compiled by AI based on publicly available information and is for reference only. It does not constitute investment advice.

1. Executive Summary

Silan Microelectronics generated revenue of RMB 7.262 billion in the first half of 2026, up 14.62% year on year, and net profit attributable to the parent of RMB 516 million, up 94.84%. However, net profit attributable to the parent excluding non-recurring items was approximately RMB 271 million, up only 0.67% year on year. The sharp increase in reported net profit was mainly driven by fair-value changes in financial assets such as Anlu Technology and Sungrow? [sic—original: 昱能科技], while improvement in core-business profitability was significantly lower than the growth in reported net profit. This is the most important fact for assessing the quality of the company’s current fundamentals.

The company uses an IDM model covering chip design, wafer manufacturing, power devices, power modules, MEMS, LEDs, and packaging and testing. In 2025, revenue from integrated circuits and discrete devices and power semiconductors increased by 19.93% and 17.32%, respectively. IPMs, IGBTs, SiC, MEMS, and automotive-grade analog circuits grew rapidly. However, overall gross margin declined from approximately 33.19% in 2021 to approximately 18.83% in 2025, while the gross margin of the core business fell further to 18.90% in the first half of 2026. The gross margin of discrete devices declined to 11.17%, and the gross margin of LED products was -3.11%.

The company’s growth drivers mainly comprise high-value-added power semiconductors, automotive and new-energy applications, SiC volume ramp-up, higher production-line utilization, and cost reduction and efficiency enhancement. Revenue maintained double-digit growth in the first half of 2026, while R&D investment was approximately RMB 568 million, or approximately 7.82% of revenue. However, the 8-inch SiC production line remains in the capacity and yield ramp-up stage. Subsequent returns from the Xiamen 12-inch high-end analog project will be reflected mainly through the equity method, while the project’s construction, customer certification, and large-scale profitability still require validation.

As of September 11, 2026, the share price was RMB 30.07, approximately 47.3% below the 52-week high, and in a low-level consolidation phase following a rapid decline. The share price was slightly above the MA5 and MA10 but below the MA20 and MA50. MACD was below the zero axis, and net institutional capital outflow over the past five trading days was approximately RMB 210 million. At the same time, the dynamic P/E ratio was approximately 48.50x, PE-TTM approximately 77.02x, and P/B approximately 4.05x, indicating that valuation still depends to a considerable extent on the realization of future earnings.

2. Company Overview

2.1 Basic Information

2.2 Core Businesses and Product Portfolio

• Integrated circuits: Includes power-management chips, AC-DC and DC-DC circuits, fast-charging circuits, MCUs, ASICs, automotive-grade analog circuits, MEMS sensors, and LED driver circuits. Revenue was RMB 4.924 billion in 2025, accounting for approximately 39.2% of core-business revenue, up 19.93% year on year, with a gross margin of 31.58%.
• Discrete devices and power semiconductors: Includes IGBTs, FRDs, super-junction MOSFETs, medium- and low-voltage MOSFETs, SiC MOSFETs, GaN devices, IPMs, and PIM power modules. Revenue was RMB 6.379 billion in 2025, accounting for approximately 50.8% of core-business revenue, up 17.32% year on year, with a gross margin of 12.22%.
• LED products: Includes LED chips and products for displays, lighting, horticultural lighting, security monitoring, infrared optocouplers, and automotive lighting. Revenue was RMB 765 million in 2025, accounting for approximately 6.1% of core-business revenue, down 0.41% year on year, with a gross margin of 1.91%.
• Other businesses: Revenue was approximately RMB 489 million in 2025, with a gross margin of 16.89%, up 18.09% year on year. The annual report provides limited disclosure on its detailed composition and earnings quality.
• Manufacturing and packaging and testing: The company has 5-inch, 6-inch, 8-inch, and 12-inch silicon-chip manufacturing capabilities; is developing 6-inch and 8-inch SiC production lines; and has packaging and testing capabilities for power devices, power modules, and IPM modules.

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

Silan Microelectronics is not a mining-resource company but a diversified IDM enterprise positioned in the upper-middle portion of the semiconductor value chain. It has capabilities in chip design, wafer manufacturing, power devices, power modules, MEMS, LEDs, and packaging and testing, connecting upstream materials, equipment, and energy and facility systems with downstream applications in home appliances, automobiles, new energy, industry, computing, communications, and consumer electronics.

• The company’s actual upstream inputs include silicon wafers, silicon epitaxial wafers, SiC and other compound-semiconductor substrates and epitaxial materials, photoresists, wet electronic chemicals, targets, metal materials, high-purity specialty gases, package substrates, lead frames, bonding wires, molding compounds, LED epitaxy and precious-metal-related materials, as well as wafer-manufacturing, packaging and testing equipment and power, facility, and cleanroom systems. This classification is based on the company’s business and process chain. The 2025 annual report did not disclose a complete itemized procurement list or all supplier names.
• Manufacturing costs are not determined mainly by a single raw material. Depreciation, energy, facilities, and equipment-related manufacturing expenses account for a relatively high proportion. In 2025 manufacturing costs for 5- and 6-inch chips comprised 25.25% direct materials, 19.39% indirect materials, 22.39% labor, and 32.98% manufacturing expenses; for 8-inch chips, the respective proportions were 19.44%, 11.37%, 16.36%, and 52.82%; for LED chips, they were 11.94%, 34.04%, 11.54%, and 42.49%.
• 8-inch production lines are particularly sensitive to equipment depreciation, energy, and capacity utilization. Full loading helps dilute unit fixed costs, but fixed manufacturing expenses remain when demand declines, potentially amplifying earnings volatility. In 2025, the company’s 5- and 6-inch production lines at Silan Integration, its 8-inch line at Silan Jixin, and the 12-inch line at major investee company Silan Jike were all operating at or near full capacity.
• The company has limited bargaining power over silicon wafers, specialty gases, equipment, and certain chemical materials. Some materials and equipment are characterized by supplier concentration, long qualification cycles, and high switching costs. The company can reduce risks through multi-supplier development, production scale, and long-term cooperation, but does not possess strong pricing power over all upstream inputs.
• Procurement from the top five suppliers was RMB 4.255 billion in 2025, accounting for 40.16% of total annual procurement. Procurement from related parties was RMB 3.162 billion, accounting for 29.85% of total annual procurement. The annual report did not fully disclose supplier names or specific procurement categories, so the degree of supplier dependence requires further assessment in conjunction with related-party transaction announcements.
• Downstream markets include large home appliances, new-energy vehicles, new-energy generation and storage, industrial control, servers and computing, communications, consumer electronics, and LED displays and lighting.
• Large-home-appliance applications include variable-frequency equipment such as air conditioners, refrigerators, washing machines, and fans. Automotive applications include main drives, OBCs, onboard power supplies, and other automotive electronics. New-energy applications include photovoltaic inverters, energy storage, wind power, and charging piles.
• In 2025, more than 80% of the company’s finished-circuit and finished-device sales revenue came from relatively high-barrier markets such as large home appliances, communications, industrial applications, new energy, and automobiles, indicating reduced dependence on ordinary consumer electronics and low-end general-purpose device markets.
• Downstream customers generally require high product certification standards, reliability, and continuity of supply. Automotive and large-home-appliance customers have relatively high entry barriers and customer stickiness, but certification cycles are long and pricing negotiations and annual price-reduction pressure exist.
• Sales to the top five customers were RMB 2.762 billion in 2025, accounting for 21.16% of annual sales. No single customer accounted for more than 50% of sales, and the annual report determined that there was no significant dependence on a single customer. This data relates to 2025. The names of the top five customers were not disclosed, and the research notes provided no data for other years for cross-checking. Therefore, it cannot be determined from this information whether the company is deeply tied to a particular leading home-appliance or automotive company.
• Competition in power semiconductors and general-purpose devices is relatively fragmented. Domestic substitution, high-end applications, and customer certification are important directions, but domestic capacity is expanding rapidly, and some MOSFETs, IGBTs, LEDs, and general-purpose devices continue to face price competition.
• As of December 31, 2025, the carrying value of accounts receivable was RMB 3.179 billion, accounting for 11.88% of total assets and equivalent to approximately 24.4% of 2025 revenue. The gross carrying amount of accounts receivable was RMB 3.397 billion, with a bad-debt provision of RMB 218 million. Accounts payable were RMB 3.334 billion, accounting for 12.46% of total assets and equivalent to approximately 25.5% of revenue, including RMB 2.424 billion for materials procurement and RMB 906 million for long-term asset purchases. The carrying amount of accounts payable was slightly higher than the carrying value of accounts receivable, indicating that the company can to some extent use supplier payment terms and bill settlement to support working capital. However, accounts receivable represented approximately one-quarter of annual revenue, and the annual report did not fully disclose the payment terms, customer categories, or aging structure of the top five customers. Therefore, this does not establish that the company has strong bargaining power over downstream customers.
• For 2025, sales to the top five customers accounted for 21.16% of annual sales, while purchases from the top five suppliers accounted for 40.16% of annual procurement; related-party purchases accounted for 29.85%. Overall customer concentration was not high, but customer and supplier names, procurement categories, and customer payment terms were not fully disclosed. These concentration figures mainly come from the 2025 annual report; the research notes provided no data for other years for cross-checking. The latest annual report and relevant announcements should prevail.

Silan Microelectronics is positioned in the upper-middle portion of the semiconductor value chain and is closer to an “intermediate IDM platform plus certain high-value-added power products and modules” than to either a high-margin upstream resource business or a pure low-value-added foundry. Current gross and net margins remain constrained by price competition, depreciation, energy, capacity ramp-up, and low-margin LED operations. Further improvement mainly depends on a higher proportion of high-value-added products such as IPMs, IGBTs, SiC, and automotive-grade analog circuits; higher utilization and yields at the 8-inch, 12-inch, and SiC lines; the onboarding of automotive and new-energy customers; and lower unit costs for equipment depreciation, energy, and materials.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Results

The latest financial report is the company’s 2026 interim report disclosed in August 2026, covering the period ended June 30, 2026. Net profit attributable to the parent excluding non-recurring items was RMB 271 million in 1H 2026, up 0.67% year on year. Basic EPS was RMB 0.31, up 93.75% year on year, while basic EPS excluding non-recurring items was RMB 0.16, broadly unchanged from the same period of the previous year. Total non-recurring items during the reporting period were approximately RMB 245 million. Net profit attributable to the parent excluding non-recurring items represented approximately 52.5% of reported net profit attributable to the parent; this ratio is an estimate based on the disclosed data.

Revenue maintained double-digit growth in 1H 2026, but the gross margin of the core business was 18.90%, down 1.31 percentage points year on year. Discrete-device revenue was RMB 3.444 billion, with a gross margin of 11.17%, down 2.84 percentage points year on year. LED-product revenue was RMB 377 million, with a gross margin of -3.11%. Net profit attributable to the parent increased 94.84% year on year, but net profit attributable to the parent excluding non-recurring items increased only 0.67%, indicating that the sharp increase in reported net profit was substantially affected by non-recurring gains and that improvement in core-business profitability was considerably lower. R&D investment was approximately RMB 568 million in 1H 2026, up 8.56% year on year and accounting for approximately 7.82% of revenue.

3.2 Earnings Forecasts

As of September 11, 2026, the earnings-forecast page of iFinD indicated that approximately four institutions had issued forecasts for Silan Microelectronics during the preceding six months. The platform’s aggregated revenue forecasts were RMB 15.528 billion for 2026, RMB 18.093 billion for 2027, and RMB 21.130 billion for 2028, corresponding to revenue growth of approximately 18.97%, 16.52%, and 16.77%, respectively. The platform sample average was calculated from the five detailed records described in the research notes and includes two different-date or different-analyst records from Huatai Securities. Strictly speaking, it is not a fully deduplicated multi-institution consensus estimate. These forecasts are institutional forecasts or platform-aggregated data, not official company guidance. They primarily assume a recovery in the semiconductor cycle, higher power-device prices, SiC volume ramp-up, gross-margin recovery, and higher capacity utilization.

3.3 Valuation and Institutional Ratings

At the September 11, 2026 close, Silan Microelectronics’ share price was RMB 30.07, with a market capitalization of approximately RMB 50.039 billion, a dynamic PE-TTM of approximately 77.02x, and a P/B ratio of approximately 4.05x. Based on the platform-sample average EPS, the share price corresponds to forward P/E ratios of approximately 58.3x, 41.9x, and 32.5x for 2026, 2027, and 2028, respectively. Based on first-half 2026 book value per share of approximately RMB 7.42, current P/B was approximately 4.05x. Overall valuation is not in the low-valuation range and depends substantially on the realization of future earnings. Publicly disclosed institutional target prices ranged from approximately RMB 30.50 to RMB 55.00, with an average of approximately RMB 41.44. The divergence mainly reflects differing institutional views on the sustainability of industry price increases, the pace of gross-margin recovery, and the ramp-up of the 12-inch line and SiC capacity. Net profit attributable to the parent excluding non-recurring items grew only 0.67% year on year in 1H 2026, while institutional forecasts for full-year net profit attributable to the parent range from approximately RMB 810 million to RMB 950 million. Subsequent earnings forecasts therefore depend heavily on second-half gross-margin recovery, higher power-device prices, reduced SiC losses, and improved capacity utilization.

4. Recent News and Announcements

4.1 September Share Pledge and Release: Total Pledged Shares Unchanged

On September 11, 2026, Silan Microelectronics disclosed the Announcement on the Pledge and Release of Certain Shares by a Shareholder (Announcement No. Lin 2026-034). Chen Xiangdong, a shareholder and one of the company’s actual controllers, pledged 3.307 million shares on September 8 to Guotai Junan Securities, with the pledge running through September 5, 2029, for the purpose of operating a real business. The pledge of 3.307 million shares was released on September 9. As the pledged and released quantities were identical, Chen Xiangdong’s cumulative pledged shares remained unchanged after completion of the transaction. As of the announcement date, Chen Xiangdong directly held 12.349896 million shares, representing 0.74% of total share capital. The remaining pledged shares were 6.587 million, representing 53.34% of his holdings and 0.40% of total share capital. Chen Xiangdong and persons acting in concert held a combined 562.61 million shares, representing 33.81% of total share capital; cumulative pledged shares were 12.127 million, representing 2.16% of their combined holdings and 0.73% of total share capital. Hangzhou Silan Holding held 513.92 million shares, representing 30.88% of total share capital, and had pledged 3.5 million shares, representing 0.68% of its holdings and 0.21% of total share capital. Overall pledge ratios were low and did not increase, but Chen Xiangdong’s relatively high remaining personal pledge ratio and subsequent changes warrant monitoring.

4.2 1H 2026 Report: Revenue Growth and Sharp Increase in Reported Net Profit, but Core Net Profit Broadly Flat

On August 25, 2026, the company disclosed its 2026 interim report, summary, special report on the deposit and use of proceeds, and announcement concerning its interim results briefing. In 1H 2026, the company generated revenue of RMB 7.262 billion, up 14.62% year on year; net profit attributable to shareholders of the listed company was RMB 515.92 million, up 94.84%; net profit attributable to the parent excluding non-recurring items was approximately RMB 271 million, broadly unchanged year on year; and net cash flow from operating activities was approximately RMB 292 million, down year on year. The company disclosed that a substantial portion of profit growth came from fair-value changes in financial assets such as Anlu Technology and Yinneng Technology. The earnings preannouncement disclosed on July 15 indicated that the relevant financial assets generated an after-tax net gain of approximately RMB 194.14 million. Therefore, the sharp growth in reported net profit cannot be directly equated with strong growth in core-business profit, and continued attention should be paid to improvement in the company’s semiconductor operations.

4.3 Interim Results and Earnings Preannouncement Broadly Reconciled; Sharp Profit Growth Mainly Affected by Fair-Value Changes in Financial Assets

On July 15, 2026, the company disclosed its interim earnings preannouncement. It expected net profit attributable to the parent of approximately RMB 519.13 million in 1H 2026, up 96.05% year on year, and net profit attributable to the parent excluding non-recurring items of approximately RMB 276.44 million, up 2.78%. Final interim-report net profit attributable to the parent was RMB 515.92 million, approximately RMB 3.204 million below the preannouncement, representing a deviation of approximately 0.62%. Net profit attributable to the parent excluding non-recurring items was approximately RMB 271 million, lower than the preannouncement. The company expected revenue growth to be mainly driven by continued R&D investment, market expansion, increased production-line output, and cost reduction and efficiency enhancement. The earnings preannouncement also noted that the relevant figures had not been audited by a certified public accountant and that final figures would be based on the interim report. Valuation changes in the company’s holdings of Anlu Technology, Yinneng Technology, and Lianxun Instruments shares acquired through strategic placement generated an aggregate after-tax net gain of approximately RMB 194.14 million.

4.4 Silan Jihua Ownership Restructuring: No Longer Consolidated and Subsequently Accounted for Using the Equity Method

Based on the recent 2026 announcements retrieved, no new major acquisition announcement by Silan Microelectronics was identified. Previously, the investment structure of the Xiamen Silan Jihua 12-inch high-end analog integrated-circuit chip manufacturing project changed. Silan Jihua’s registered capital was RMB 5.110 billion, while Silan Microelectronics and its wholly owned subsidiaries invested a combined RMB 1.510 billion. After the completion of the industrial and commercial registration change, Silan Microelectronics directly and through subsidiaries held approximately 29.55% of Silan Jihua in aggregate. Silan Jihua was no longer included in consolidated financial statements and would subsequently be accounted for using the equity method. The 2026 interim report showed that, as of the end of the reporting period, the company held a 29.55% interest in Silan Jihua. In addition, by the end of June 2026, the company had completed all capital-contribution obligations to Silan Jihong, with cumulative paid-in capital of RMB 1.060 billion and a 25.1781% interest. This matter did not newly arise in September 2026 but will continue to affect the recognition basis for the company’s revenue, assets, and profit. Construction progress, capacity release, and equity-method investment income should be monitored.

4.5 Buybacks and Disposals: No New Relevant Announcement Identified as of September 13

As of September 13, 2026, no new share-repurchase plan, repurchase-progress announcement, or new disposal plan by the controlling shareholder was identified in the retrieved Silan Microelectronics announcement list and public search results for September 2026. Recent shareholder-related matters mainly comprised the September 11 announcement on the pledge and release of shares and the May 9 announcement on the pledge of certain shares by the controlling shareholder. Around mid-2026, no announcement of a large-scale disposal by the controlling shareholder or concentrated disposal by the actual controller appeared in the announcement list. “Not identified” means only that no relevant announcement was found within the scope of this search and does not absolutely rule out all shareholder-holding changes at the transaction level.

4.6 Regulatory and Trading Information: No New Regulatory Penalty Identified; Silan Microelectronics Remains a Margin-Financing and Securities-Lending Stock

As of September 13, 2026, no new announcement was identified in the retrieved company-announcement list indicating that Silan Microelectronics had been subject to regulatory measures, disciplinary action, or an investigation by the Shanghai Stock Exchange or the China Securities Regulatory Commission. The company disclosed an announcement on abnormal stock-price volatility on June 18, 2026. On the preceding day, publicly disclosed trading information showed that the cumulative deviation in the stock’s increase over three consecutive trading days had reached 20%. This was an earlier market-trading event rather than the latest September announcement. In the Shanghai Stock Exchange’s periodic adjustment notice for margin-financing and securities-lending stocks published in July 2026, 600460 Silan Microelectronics remained on the list of eligible securities. This is information at the trading-system level and does not indicate any change in the company’s fundamentals or regulatory rating.

4.7 Recent Areas of Focus and Uncertainties

As of September 13, 2026, key recent areas of focus include the following: net profit attributable to the parent increased 94.84% year on year in 1H 2026, but net profit attributable to the parent excluding non-recurring items was approximately RMB 271 million and broadly flat year on year, with a substantial portion of the profit increase coming from fair-value changes in financial assets; after the September pledge and release, the aggregate pledge ratio of the controlling shareholder and persons acting in concert remained 0.73%, but Chen Xiangdong’s remaining personal pledge ratio was 53.34%; and after Silan Jihua ceased to be consolidated, returns from the relevant project will be reflected mainly through the equity method. Key uncertainties include the sensitivity and volatility of fair-value changes in financial assets, which cannot be directly extrapolated to the full year; the impact of industry cycles, product prices, customer demand, and capital expenditure on the company’s operating plans, capacity release, and market expansion; and the possibility that subsequent announcements may change the assessment. No new September buyback, major acquisition, or regulatory penalty announcement had been identified as of September 13, 2026, but this conclusion is based on publicly searchable announcements available as of that date.

5. Share-Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Silan Microelectronics closed at RMB 30.07, in a deep retracement from the July high of RMB 57.10 and in low-level consolidation following the earlier rapid decline. The short-term price was slightly above MA5 and MA10 but remained below MA20 and MA50. MACD was negative and below the zero axis, RSI(14) was 44.853, and the Bollinger Bands were in the lower-middle portion. The technical picture was broadly weak, with no clear confirmation of a medium-term reversal. Recent turnover value and turnover rate were relatively active, but net institutional capital outflow over the past five trading days was approximately RMB 210 million and the margin-financing balance was high, indicating continued divergence in capital flows. In the short term, attention should be paid to support near RMB 29.00 and resistance near RMB 31.20, as well as whether increased volume can translate into an effective breakout.

5.3 Short-Term Outlook (Next Week; Scenario Analysis for Reference Only)

⚠️ Risk warning: The following is only a subjective scenario analysis based on closing data as of September 11, 2026, historical prices, and technical indicators. It does not constitute investment advice or a definitive forecast of future share prices.

① Key Technical Levels

② Scenarios for the Next Week (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively higher weight, approximately 60%; this is a subjective heuristic based on current technical indicators and capital flows, not a statistical probability): Price range of RMB 29.40–31.20. Trigger conditions include holding near RMB 29.40, turnover value remaining within the recent normal range of approximately RMB 1.3–1.9 billion, no significant weakening in the semiconductor sector, and no effective breakout above the RMB 30.80–31.20 resistance zone. The current price is below MA20 but above MA5 and MA10, MACD remains negative, and net institutional capital outflow over the past five days suggests that the stock is technically more likely to undergo repeated low-level turnover.
• Weak decline (medium weight; this is a subjective heuristic based on current technical indicators and capital flows, not a statistical probability): Price range of RMB 27.80–29.40. Trigger conditions include an effective break below RMB 29.40 followed by a break below RMB 29.00, accompanied by a clear increase in one-day turnover value to above RMB 2.0 billion while the closing price remains weak; alternatively, a broad decline in semiconductor stocks or concentrated repayment of margin financing. If support near RMB 29 is lost, the lower Bollinger Band near RMB 28.82 should be observed. A break below it could lead to a search for new trading support around RMB 27.80–28.30. An intraday break alone should not be treated as a confirmed breakdown.
• Stronger rebound (low-to-medium weight; this is a subjective heuristic based on current technical indicators and capital flows, not a statistical probability): Price range of RMB 31.20–33.00. Trigger conditions include an effective closing-price breakout above RMB 31.20, turnover value increasing to above RMB 2.0 billion on at least one trading day, simultaneous strengthening of the semiconductor sector, and institutional capital flows changing from net outflow to consecutive net inflows. If the breakout occurs on increased volume, the next observation levels are around RMB 32.30 and the RMB 33 round-number level. However, with MACD still below the zero axis and RSI around 44.9, a pullback after the spike remains a risk.

③ Capital and Liquidity Background

From September 7 to 11, 2026, Silan Microelectronics’ turnover value was approximately RMB 1.348–1.916 billion and its turnover rate approximately 2.68%–3.76%. The five-day average turnover value was approximately RMB 1.67 billion and the average turnover rate approximately 3.3%. As of September 11, net institutional capital outflow over the past five days was approximately RMB 210 million. The margin-financing balance was approximately RMB 2.194 billion, or 4.39% of free-float market capitalization. Margin-financing participation was not low, but this also implies potential deleveraging pressure if the share price fluctuates. The top-10 tradable-shareholder concentration was 42.64% as of June 30, 2026, most of which came from controlling shareholder Hangzhou Silan Holding. The China Integrated Circuit Industry Investment Fund and its second phase, Hong Kong Securities Clearing, semiconductor ETFs, and the CSI 300 ETF also appeared among the top 10 tradable shareholders. The number of shareholder accounts increased 34.42% from March 31, 2026, indicating some dispersion in the ownership structure based on publicly disclosed data. Because the shareholder data lagged September 11 by approximately two and a half months and the share price experienced significant volatility during the period, the data cannot be used to infer the current real-time ownership structure. Given a market capitalization of approximately RMB 50 billion and the above turnover value and turnover rate, the stock would generally be capable of supporting normal trading, but it has not shown characteristics of sustained concentration driven by strong capital flows. Actual liquidity still requires observation of the order book and latest trading data.

A verifiable volume-confirmation signal would be the following: if daily turnover value rises consecutively above RMB 2.0 billion during the next week and the closing price stands above RMB 31.20, this could indicate renewed short-term capital participation and stronger rebound validity. If turnover increases while the share price falls below RMB 29.00, the pattern would be more consistent with high-volume exit selling or the release of selling pressure.

④ Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Observation framework, not a trading instruction: Monitor whether the first support zone of RMB 29.40–29.90 can hold effectively.
• Observation framework, not a trading instruction: Monitor whether the strong-support zone of RMB 28.80–29.10 experiences a high-volume breakdown and the degree of support in the RMB 27.80–28.30 range afterward.
• Observation framework, not a trading instruction: Monitor whether RMB 31.20 can be broken effectively with increased turnover value, followed by the RMB 32.30–33.00 range.
• Observation framework, not a trading instruction: Monitor whether institutional capital flows change from net outflow over the past five days to consecutive net inflows, and whether concentrated repayment occurs against the backdrop of a high margin-financing balance.

The above scenario analysis is based on the September 11, 2026 closing data and calculations using historical prices and technical indicators. Short-term share-price performance will also be affected by news, capital flows, the broader market, industry trends, and changes in margin trading. Technical indicators themselves have lag and limitations. This does not guarantee actual future performance or constitute a buy or sell recommendation. Investors should independently assess the latest market information and bear investment risks themselves.

6. Industry Landscape and Competitor Analysis

6.1 Industry Overview

Silan Microelectronics primarily operates in power semiconductors and specialty-process semiconductors, with both IDM and Fabless models present in the industry. Power semiconductors are widely used in home appliances, automobiles, new energy, industrial control, servers, communications, and consumer electronics. Key competitive factors include chip performance, customer certification, reliability, supply stability, packaging capabilities, scale-related costs, and product mix.

6.2 Competitive Landscape

• IDM companies cover design, wafer manufacturing, and packaging and testing. They have strong process and product synergies and supply assurance, making them suitable for power devices, analog chips, MEMS, and automotive-grade products. However, they have higher capital expenditure and depreciation, and profitability is significantly affected by capacity utilization. Silan Microelectronics, China Resources Microelectronics, and Yangjie Technology have relatively strong manufacturing attributes; StarPower Semiconductor and AOS? [sic—original: 新洁能] are more oriented toward chip design, module design, or the Fabless model.
• Power semiconductors have broad application areas, but industry competition is highly fragmented. Domestic substitution and high-end applications in automobiles, new energy, computing, servers, industry, and communications are key directions. These markets have higher requirements for reliability, efficiency, power density, and long-term supply capability.
• Domestic substitution does not automatically generate high profits. Domestic power-semiconductor capacity is expanding rapidly, and some MOSFETs, IGBTs, LEDs, and general-purpose devices continue to face price competition, potentially resulting in revenue growth accompanied by margin pressure.
• SiC and high-end analog chips are in the expansion and customer-introduction stages. Technology, yield, cost, orders, and customer certification are the main competitive factors. Silan Microelectronics has established 6-inch SiC capacity and is building an 8-inch SiC production line, but the relevant projects remain in the mass-production ramp-up stage.
• Silan Microelectronics’ 8-inch SiC production line was operational in 2025 and had formed production capacity of approximately 5,000 wafers per month. The Xiamen 12-inch high-end analog project remains a planning and construction target. There is a time lag between line startup, the formation of monthly production capacity, stable yield, and large-scale profitability. Planned capacity cannot be equated directly with current effective capacity.

6.3 Major Competitors

Silan Microelectronics, China Resources Microelectronics, and Yangjie Technology are all semiconductor companies with relatively strong manufacturing attributes. Compared with StarPower Semiconductor, Silan Microelectronics has a broader product line and more complete internal manufacturing processes, but also faces greater fixed-asset and production-line operating pressure. Compared with companies focused on discrete devices or module design, Silan Microelectronics covers integrated circuits, IPMs, IGBTs, SiC, MEMS, LEDs, and packaging and testing, giving it greater comprehensiveness. Its relative advantages lie in IDM synergies, home-appliance variable-frequency applications and IPMs, power devices and modules, multi-product platforms, and domestic customer coverage. Key constraints include limited bargaining power over upstream materials and equipment, concentration of suppliers and related-party procurement, industry price competition, the drag from low-margin LED operations, and yield ramp-up, customer certification, and capital-expenditure pressure at the SiC and 12-inch analog projects.

7. Risk Factors

• Risk that core-business earnings improvement will lag reported net-profit growth: Net profit attributable to the parent excluding non-recurring items was approximately RMB 271 million in 1H 2026, up only 0.67% year on year, while reported net profit attributable to the parent increased 94.84%. A substantial portion of the approximately RMB 245 million in non-recurring items came from fair-value changes in financial assets. Changes in financial-asset prices are volatile and cannot be directly extrapolated to full-year core-business earnings.
• Risk of continued gross-margin pressure: Overall gross margin declined from approximately 33.19% in 2021 to approximately 18.83% in 2025, while the gross margin of the core business was 18.90% in 1H 2026. Discrete-device gross margin fell 2.84 percentage points year on year to 11.17%, and LED-product gross margin was -3.11%. If price competition in MOSFETs, IGBTs, LEDs, and general-purpose devices continues, revenue growth may not translate into proportional profit growth.
• Risk of lower-than-expected capacity utilization, depreciation absorption, and ramp-up: The IDM model has a high proportion of fixed assets and manufacturing expenses. In 2025, manufacturing expenses accounted for 52.82% of the cost of 8-inch chips. Although the 8-inch SiC line had formed capacity of approximately 5,000 wafers per month, there is a time lag between line startup, stable yield, and large-scale profitability. If demand, yield, or customer introduction falls short of expectations, fixed-cost absorption pressure could increase.
• Risk related to changes in earnings recognition and construction of the 12-inch high-end analog project: Following the ownership restructuring of Silan Jihua, Silan Microelectronics holds approximately 29.55% in aggregate, and the entity is no longer consolidated and is instead accounted for using the equity method. Construction progress, capacity release, customer certification, and equity-method investment income may fall short of expectations and affect the basis for recognizing revenue and profit.
• Risk of upstream supplier and related-party procurement concentration: Purchases from the top five suppliers accounted for 40.16% of total annual procurement in 2025, while related-party purchases accounted for 29.85%. The company has limited bargaining power over silicon wafers, specialty gases, equipment, and certain chemical materials. Adverse changes in supply assurance, procurement prices, or related-party transaction arrangements could affect manufacturing costs and production stability.
• Working-capital and accounts-receivable risk: At the end of 2025, the carrying value of accounts receivable was RMB 3.179 billion, equivalent to approximately 24.4% of 2025 revenue. The aging structure of accounts receivable, payment terms of the top five customers, and customer categories were not fully disclosed. Slower collections from downstream customers could increase bad-debt and cash-flow pressure.
• Market-valuation and earnings-realization risk: As of September 11, 2026, the company’s dynamic P/E was approximately 48.50x, PE-TTM approximately 77.02x, and P/B approximately 4.05x. Institutional forecasts for 2026 net profit attributable to the parent range from approximately RMB 809 million to RMB 948 million. If gross-margin recovery, SiC volume ramp-up, or capacity-utilization improvement falls short of expectations, current valuation may face repricing pressure.
• Share-price volatility and margin-trading risk: The share price declined from the intraday high of RMB 57.10 in July 2026 to RMB 30.07 at the September 11 close. MACD was below the zero axis, net institutional capital outflow over the past five trading days was approximately RMB 210 million, and the margin-financing balance was approximately RMB 2.194 billion, or 4.39% of free-float market capitalization. If support near RMB 29.00 breaks, deleveraging by margin positions could amplify short-term volatility.

8. Conclusion and Outlook

Silan Microelectronics has a relatively complete IDM platform and multi-product synergy capabilities, with businesses covering home appliances, automobiles, new energy, industrial control, servers and computing, communications, and consumer electronics. In 2025, more than 80% of circuit and device finished-product sales came from relatively high-barrier markets such as large home appliances, communications, industry, new energy, and automobiles. If IPMs, IGBTs, SiC, automotive-grade analog circuits, and MEMS continue to increase their revenue contribution, accompanied by improvements in capacity utilization, yield, and unit costs, revenue growth may gradually translate into core-profit improvement.

The quality of current earnings requires close attention. The sharp increase in reported net profit attributable to the parent in 1H 2026 mainly came from fair-value changes in financial assets, while core profit was broadly flat. Net cash flow from operating activities was approximately RMB 292 million and declined. At the same time, institutional forecasts for 2026 net profit attributable to the parent range from approximately RMB 809 million to RMB 948 million, implying substantial dependence on second-half gross-margin recovery, power-device price changes, SiC volume ramp-up, and improved capacity utilization.

The company’s subsequent performance will depend on whether core-business profitability can continue to improve, whether the SiC and 12-inch analog projects can ramp up successfully, whether the drag from low-margin LED operations can ease, and whether industry price competition and fixed-asset depreciation pressure can moderate. Technically, RMB 31.20 is a key recent resistance level, while RMB 29.00 and the RMB 28.80–29.10 range are important support areas to monitor. These price levels and scenarios reflect only market observations based on current data and do not constitute a definitive judgment about future performance.

Data Sources

• https://static.cninfo.com.cn/finalpage/2026-04-25/1225189603.PDF
• Silan Microelectronics (600460)_Company Announcements_Silan Microelectronics: Summary of 2025 Annual Report_Sina Finance_Sina.com
• 2025 Annual Report of Hangzhou Silan Microelectronics Co., Ltd.
• Silan Microelectronics (600460)_Company Announcements_Silan Microelectronics: 2022 Annual Report_Sina Finance_Sina.com
• Silan Microelectronics (600460)_Company Announcements_Silan Microelectronics: 2023 Annual Report_Sina Finance_Sina.com
• Silan Microelectronics (600460)_Company Announcements_Silan Microelectronics: 2024 Annual Report_Sina Finance_Sina.com
• 2025 Annual Report of China Resources Microelectronics Limited
• Yangjie Technology: 2025 Annual Report_Stock Channel_Stockstar
• Jiejie Microelectronics (300623)_Company Announcements_Jiejie Microelectronics: 2025 Annual Report_Sina Finance_Sina.com
• StarPower Semiconductor—Investor Relations
• Silan Microelectronics (600460)_Company Announcements_Silan Microelectronics: 2026 Interim Report_Sina Finance_Sina.com
• Silan Microelectronics (600460)_Company Announcements_Silan Microelectronics: 2026 Interim Report_Sina Finance_Sina.com
• Silan Microelectronics (600460)_Company Announcements_Silan Microelectronics: Summary of 2025 Annual Report_Sina Finance_Sina.com
• Silan Microelectronics (600460)_Company Announcements_Silan Microelectronics: 2025 Interim Report_Sina Finance_Sina.com
• Silan Microelectronics (600460) Earnings Forecast_F10_iFinD
• Silan Microelectronics (600460)—Detailed Institutional Ratings
• https://reportify.cn/reports/1264987205718380544?utm_source=openai
• Silan Microelectronics (600460)—Stock Forecast and Analyst Ratings—Futu NiuNiu
• Earnings Forecast
• Silan Microelectronics (600460) P/E|Valuation|Fundamentals—Lingxinren
• Silan Microelectronics (600460) Financial Indicators_Sina Finance_Sina.com
• Silan Microelectronics (600460)_Company Announcements_Silan Microelectronics: Summary of 2026 Interim Report_Sina Finance_Sina.com
• Silan Microelectronics (600460)_Company Announcements_Silan Microelectronics: Announcement on the Pledge and Release of Certain Shares by a Shareholder_Sina Finance_Sina.com
• Silan Microelectronics (600460)_Company Announcements_Silan Microelectronics: 2026 Interim Earnings Preannouncement_Sina Finance_Sina.com
• Silan Microelectronics (600460)_Company Announcements_Silan Microelectronics: 2026 Interim Report_Sina Finance_Sina.com
• Silan Microelectronics (600460) Company Announcements_Sina Finance_Sina.com
• Silan Microelectronics (600460)—Material Events Memorandum—Stock Market Center—Sohu Securities
• Stock Code: 600460 Stock Name: Silan Microelectronics Listing Venue: Shanghai Stock Exchange
• Silan Microelectronics sh600460 Stock Price, Market Data, Live Feed, News, Financial Reports, Data—AiguPiao
• Hangzhou Silan Microelectronics Co Ltd (600460) Historical Prices—Investing.com
• Hangzhou Silan Microelectronics (SHA:600460) Stock Price & Overview
• Silan Microelectronics (600460)—Historical Trading Data—Dabanke
• Hangzhou Silan Microelectronics Co Ltd Stock Technical Analysis (600460)
• Silan Microelectronics (600460) Stock News_Sina Finance_Sina.com
• Silan Microelectronics (600460) Stock News_Sina Finance_Sina.com
• Silan Microelectronics (600460) Shareholder Research_F10_iFinD

This report was automatically retrieved, compiled, and generated by AI based on publicly available information. Information is current as of the September 11, 2026 close; certain shareholder data are as of June 30, 2026, and technical indicators and market data are based on the disclosures in the research notes and may differ in timeliness. Specific data should be verified against the company’s official announcements and authoritative data terminals. This report is for information and research reference only and does not constitute investment advice. Investors should make independent judgments and bear investment risks themselves.