The truth behind Hanlei SiC technology breakthrough: hype frenzy or long-term opportunity?

Mentioning Hanlei (3707) and its recent stock market performance, almost no one can ignore it. This company, focused on third-generation semiconductors, launched the fourth-generation MOSFET process platform (G4) for silicon carbide (SiC), which immediately triggered a series of market enthusiasm. In just four trading days, the stock price surged from over 40 yuan to a new high of 57.7 yuan, with a monthly increase of over 25%, including three trading days hitting the daily limit, making it a market focus.

Market Imagination Behind the Technical Breakthrough

What is the core catalyst driving this wave of momentum? Hanlei announced that the G4 platform achieved two major advances: a 20% reduction in chip size and a 20% decrease in on-resistance, reaching the level of international major manufacturers. This technological breakthrough itself demonstrates the company’s R&D strength, but what truly ignited market enthusiasm was the imagination that AI giants like NVIDIA might adopt SiC materials in their next-generation GPUs. As a potential participant in the supply chain, Hanlei has become a protagonist in this story.

Foreign institutional investors and proprietary traders jointly bought in, pushing the stock price through various moving averages. When the breakout volume reached 50,285 chips and the breakout ratio hit 71%, what does this indicate? A large influx of short-term funds, turning the stock into a speculative chip. The most intuitive example was last Friday (the 5th): the stock surged to 56.5 yuan, up 4.24% in the morning, but was immediately met with selling pressure, turning negative and closing down 3.14% at 52.5 yuan. This is not a technical issue but a result of capital game-playing.

The Gap Between a Bright Story and a Dark Reality

However, investors must see a harsh reality: Hanlei’s fundamentals are far from as bright as its stock price suggests. Financial reports show that the company has suffered losses for seven consecutive quarters, with a loss per share of 1.02 yuan in the first half of this year. Revenue performance is also concerning—although there was a rebound in July, the total revenue for the first seven months still declined 7.9% compared to the same period last year.

What does this mean? The current stock price surge is entirely based on a “technological story,” not genuine profit support. Whether technological breakthroughs can translate into actual revenue growth remains to be seen. Until then, investors are buying expectations, not performance.

How Should Investors View This Wave of Momentum

For retail investors, Hanlei’s SiC platform breakthrough is indeed worth noting, but given the stark disparity between fundamentals and stock price, clear judgment is crucial.

First, technological innovation from laboratory to commercial application takes time. Even if the G4 platform reaches international standards, it still requires customer certification, mass production, and volume ramp-up—these are not processes that happen overnight.

Second, the hype of short-term capital often comes quickly and leaves just as fast. When speculators take profits, the stock price may face a rapid correction. The 71% breakout ratio already indicates this fragility.

Finally, do not be blinded by beautiful technological stories. While chasing hot topics, ask yourself: when will this company turn losses into profits? When will SiC materials become widely applied rather than just a concept hype? If these questions have no answers, then the current daily limit is more a risk signal than a buy signal.