Analysts are increasingly bearish on Intron Technology Holdings, with significant cuts to revenue and EPS estimates. Despite this, forecasts suggest revenues may still outperform the wider market. However, the extent of the downgrades could increase market wariness.

Despite strong earnings outlook and faster growth, the company's P/E ratio is lower, indicating potential earnings instability. This might be pressuring the P/E ratio and causing shareholders to accept lower selling prices.

SUMMARY
Intron Tech will announce its 1H23 results next week. We estimate 1H23E revenue of RMB 2.66bn (+28% YoY) and net income of RMB 191mn (+25% YoY). The solid growth was mainly due to strong NEV shipment and rising penetration of auto electrification/intelligence, partly offset by OEM price pressure, weaker cloud server and higher R&D expenses. Looking ahead, we expect a back-loaded 2H...