Investment Rating - The report maintains an "Accumulate-A" rating for the company [4][10]. Core Views - The company achieved a turnaround in its annual performance, reporting a revenue of 1.768 billion yuan in 2024, a year-on-year increase of 41.37%, and a net profit of 179 million yuan, up 491.56% [5][6]. - The company has a strong focus on its core business, enhancing long-term collaborations with well-known domestic and international clients, which has led to significant revenue growth and improved profit margins [6][7]. - The company is actively expanding its product applications into emerging fields, with notable revenue contributions from international clients [7][8]. Financial Performance - In 2024, the company reported a gross margin of 25.90%, an increase of 10.09 percentage points year-on-year, with a main business gross margin of 32.92%, up 15.39 percentage points [6][12]. - The company’s revenue for Q4 2024 was 487 million yuan, reflecting a 14.32% increase year-on-year, while the net profit for the same quarter was 36 million yuan, up 59.74% [5][6]. - The company’s silicon carbide substrate products generated 1.474 billion yuan in revenue, accounting for 83.35% of total revenue, with international business revenue reaching 840 million yuan, a 104.43% increase [7][9]. Product and Market Position - The company is one of the few globally capable of mass-producing 8-inch silicon carbide substrates and has launched the industry's first 12-inch silicon carbide substrate [10][9]. - The company holds a 22.80% market share in the global conductive silicon carbide substrate market, ranking second worldwide [9][10]. - The company is expanding its product matrix to include larger substrates, with ongoing development in 8-inch and 12-inch products [8][9]. Future Projections - The company is projected to achieve revenues of 2.5 billion yuan, 3.249 billion yuan, and 4.043 billion yuan for the years 2025, 2026, and 2027, respectively [10][12]. - The expected net profits for the same years are 270 million yuan, 353 million yuan, and 443 million yuan, with corresponding EPS of 0.63 yuan, 0.82 yuan, and 1.03 yuan [10][12].

Investment Rating - The report maintains an "Accumulate-A" rating for the company Tianyue Advanced (688234.SH) [1] Core Views - The company achieved a turnaround in its annual performance, reporting a revenue of 1.768 billion yuan in 2024, a year-on-year increase of 41.37%, and a net profit attributable to shareholders of 179 million yuan, up 491.56% [2][3] - The company has a strong focus on its core business, enhancing long-term collaborations with well-known domestic and international clients, which has led to a significant increase in revenue and profitability [2][3] - The company is positioned as the second-largest global manufacturer of conductive silicon carbide substrates, with a market share of 22.80% [6][7] Summary by Sections Financial Performance - In 2024, the company reported a total revenue of 1.768 billion yuan, with a net profit of 179 million yuan, marking a significant improvement from a loss in the previous year [2][3] - The gross margin for the year was 25.90%, an increase of 10.09 percentage points year-on-year, driven by cost reduction and efficiency improvements [2][3] Product and Market Development - The main business segment, silicon carbide semiconductor materials, generated revenue of 1.474 billion yuan, accounting for 83.35% of total revenue, with a year-on-year growth of 35.72% [3] - The company has successfully expanded its international business, with overseas revenue reaching 840 million yuan, a 104.43% increase, representing 47.53% of total revenue [3] - The production capacity for silicon carbide substrates reached 410,200 pieces in 2024, a year-on-year increase of 56.56% [3] Future Projections - The company is expected to achieve revenues of 2.5 billion yuan, 3.249 billion yuan, and 4.043 billion yuan in 2025, 2026, and 2027, respectively [7] - The projected net profits for the same years are 270 million yuan, 353 million yuan, and 443 million yuan, with corresponding EPS of 0.63 yuan, 0.82 yuan, and 1.03 yuan [7]

Investment Rating - The report maintains a "Recommended" investment rating for the company [1]. Core Views - The company achieved a revenue of 1.768 billion yuan in 2024, representing a year-on-year growth of 41.37%, and a net profit attributable to shareholders of 179 million yuan, a significant increase of 491.56% year-on-year [4][8]. - The company is positioned as a leader in the production of 8-inch conductive substrates, with a strong focus on high-quality silicon carbide substrates, and has established partnerships with over half of the top ten power semiconductor manufacturers globally [11]. Financial Summary - **Revenue and Profit Forecasts**: - 2024 revenue: 1.768 billion yuan, 2025 estimated revenue: 2.431 billion yuan, 2026 estimated revenue: 3.286 billion yuan, 2027 estimated revenue: 4.124 billion yuan [6][12]. - 2024 net profit: 179 million yuan, 2025 estimated net profit: 266 million yuan, 2026 estimated net profit: 440 million yuan, 2027 estimated net profit: 628 million yuan [6][12]. - **Profitability Ratios**: - Gross margin for 2024 is 25.9%, with a projected increase to 29.9% by 2027 [13]. - Net margin for 2024 is 10.1%, expected to rise to 15.2% by 2027 [13]. - **Earnings Per Share (EPS)**: - EPS for 2024 is projected at 0.42 yuan, increasing to 1.46 yuan by 2027 [12][13]. Market Position and Growth Potential - The company is actively expanding its market presence in the silicon carbide substrate sector, with a production capacity of 410,200 pieces in 2024, marking a 56.56% increase from 2023 [9]. - The introduction of the first 12-inch silicon carbide substrate in November 2024 is expected to enhance production efficiency and reduce costs, further driving market adoption [9].

Investment Rating - The report maintains a "Recommended" investment rating for the company [1][13]. Core Views - The company achieved a revenue of 1.768 billion yuan in 2024, representing a year-on-year growth of 41.37%, and a net profit attributable to shareholders of 179 million yuan, a significant increase of 491.56% year-on-year [4][8]. - The company is positioned as a leader in the mass supply of 8-inch conductive substrates, with a focus on high-quality silicon carbide substrates, and is one of the few global players capable of mass-producing 8-inch silicon carbide substrates [9][8]. - The report anticipates continued strong demand for silicon carbide substrates in downstream applications, particularly in the electric vehicle, photovoltaic, energy storage, and AI sectors [8][9]. Summary by Sections Financial Performance - In 2024, the company reported a revenue of 1.768 billion yuan, with a gross margin of 25.9% and a net margin of 10.1% [8][11]. - The projected revenues for 2025, 2026, and 2027 are 2.431 billion yuan, 3.286 billion yuan, and 4.124 billion yuan, respectively, with corresponding net profits of 266 million yuan, 440 million yuan, and 628 million yuan [6][10]. Market Position - The company has established partnerships with over half of the top ten power semiconductor manufacturers globally and is actively expanding its market presence [9][8]. - The production capacity for silicon carbide substrates is expected to increase significantly, with a projected output of 410,200 pieces in 2024, marking a 56.56% increase from 2023 [9][10]. Future Outlook - The report adjusts profit expectations for 2025-2027, forecasting net profits of 266 million yuan, 440 million yuan, and 628 million yuan, respectively, with EPS of 0.62 yuan, 1.02 yuan, and 1.46 yuan [9][10]. - The company is expected to maintain a leading position in the silicon carbide substrate market, driven by ongoing demand and technological advancements [9][8].

Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company achieved a revenue of 1.768 billion yuan in 2024, representing a year-on-year growth of 41.37%, and a net profit attributable to shareholders of 179 million yuan, up 491.56% year-on-year [5] - The introduction of the 12-inch silicon carbide substrate marks a significant technological advancement, with a 2.5 times increase in single wafer chip output [5] - The company is exploring new applications for silicon carbide materials in AI products, which could enhance user experience and reduce manufacturing costs [5] - Revenue projections for 2025-2027 are estimated at 2.538 billion yuan, 3.268 billion yuan, and 4.112 billion yuan, with corresponding net profits of 313 million yuan, 521 million yuan, and 817 million yuan [5] Financial Performance Summary - Revenue growth rates are projected at 199.90% for 2023, 41.37% for 2024, and 43.52% for 2025 [4] - The company is expected to achieve a net profit margin of 12.3% by 2025, with an EPS of 0.73 yuan [7] - The company's return on equity (ROE) is projected to improve from -0.87% in 2023 to 5.57% in 2025 [4][7] Market Position and Trends - The company is positioned to benefit from the growing demand for silicon carbide materials in various applications, particularly in the AI sector [5] - The report highlights the company's proactive approach in exploring downstream applications, which could lead to significant market opportunities [5]

Core Viewpoint - Shandong Tianyue Advanced Technology Co., Ltd. (Tianyue Advanced) is preparing for an IPO on the Hong Kong Stock Exchange, focusing on its capabilities in silicon carbide substrate manufacturing, which is essential for various high-tech applications [2]. Group 1: Company Overview - Tianyue Advanced is a manufacturer of silicon carbide substrates, which are widely used in electric vehicles, AI data centers, photovoltaic systems, AI glasses, rail transportation, power grids, home appliances, and advanced communication base stations [2]. - The company is one of the few globally capable of mass-producing 8-inch silicon carbide substrates and has pioneered the commercialization of 2-inch to 8-inch substrates, as well as the introduction of 12-inch substrates [2]. Group 2: Sales and Revenue - Tianyue Advanced ranks among the top three silicon carbide substrate manufacturers globally based on sales revenue in 2023 [3]. - The sales volume of silicon carbide substrates from 2022 to the first nine months of 2024 was 63,800 pieces, 226,300 pieces, and 251,500 pieces, with average selling prices of RMB 5,110.0, RMB 4,798.1, and RMB 4,185.0 per piece respectively [3]. - Despite a decline in product prices, the significant increase in sales volume has led to continuous revenue growth, with revenues of RMB 417 million, RMB 1.251 billion, and RMB 1.281 billion for the respective periods [4]. Group 3: Revenue Composition - Revenue from silicon carbide substrate sales accounted for 78.2%, 86.8%, and 82.2% of total revenue in 2022, 2023, and the first nine months of 2024 respectively [4]. - Sales outside mainland China have been increasing, contributing RMB 52.4 million, RMB 414.4 million, and RMB 518 million, representing 12.6%, 33.1%, and 40.4% of total revenue [6]. Group 4: Customer and Procurement Insights - The top five customers contributed 65.0%, 51.3%, and 53.2% of revenue from 2022 to the first nine months of 2024, with the largest customer accounting for 26.0%, 17.1%, and 14.4% respectively [8]. - Tianyue Advanced has engaged in related-party transactions, purchasing from companies controlled by family members of its management, with total procurement from these companies amounting to RMB 94.6 million over the specified periods [8][9].

Core Viewpoint - The company Tianyue Advanced reported a significant increase in revenue and profit for the year 2024, driven by the growing demand for silicon carbide substrates in the electric vehicle, photovoltaic, and AI sectors [1][4]. Financial Performance - The company achieved total revenue of 1.768 billion yuan in 2024, a year-on-year increase of 41.37% [1]. - Net profit reached 179 million yuan, with a non-deductible net profit of 156 million yuan, marking a turnaround from previous losses [1]. Business Segmentation - **By Product**: The revenue from silicon carbide substrates increased significantly, with a gross margin improvement of 10.40 percentage points [3]. - **By Region**: Overseas revenue doubled to 840 million yuan, a 104.43% increase year-on-year, surpassing domestic revenue for the first time [7][8]. Market Trends and Developments - The growth in revenue is attributed to the accelerated penetration of silicon carbide semiconductors in key applications such as new energy vehicles and AI [4][6]. - The company has made advancements in product quality and production capacity, including the introduction of 8-inch conductive substrates and plans for a 12-inch substrate [4]. Production Capacity and R&D - The company reported a production capacity of 410,200 silicon carbide substrates in 2024, a 56.56% increase from 2023 [4]. - R&D expenses amounted to 142 million yuan, reflecting a 3.38% increase, indicating ongoing investment in technology and capacity expansion [5]. Strategic Initiatives - The company is pursuing an internationalization strategy, including plans to establish production bases overseas to enhance responsiveness to global customer demands [8]. - Tianyue Advanced has submitted an application for listing on the Hong Kong Stock Exchange, aiming for an "A+H" market presence [8].

Investment Rating - The report maintains a "Buy" rating for the company, with expected significant profit growth in the coming years [4]. Core Insights - The company reported a revenue of 1.768 billion RMB for 2024, representing a year-on-year increase of 41.37%, and a net profit attributable to shareholders of 179 million RMB, a substantial increase of 491.56% year-on-year [1]. - The company has significantly enhanced its production capacity and efficiency, achieving a record high production of 410,200 SiC substrates in 2024, up 56.56% year-on-year [2][3]. - The company is recognized as the second-largest global manufacturer of conductive SiC substrates, holding a market share of 22.8% [3]. Summary by Sections Performance Review - In Q4 2024, the company achieved a revenue of 487 million RMB, a year-on-year increase of 4.32%, and a net profit of 36 million RMB, up 59.74% year-on-year [1]. Operational Analysis - The company has improved its core product capacity, with the Jinan plant steadily increasing output and the Shanghai plant achieving its annual production target ahead of schedule [2]. - The gross profit margin for 2024 was reported at 25.9%, showing a significant improvement compared to previous years [2]. Research and Development - The company has made advancements in R&D, being the first in the industry to produce 8-inch substrates without macro defects, and has a total of 194 invention patents and 308 utility model patents [3]. Profit Forecast and Valuation - The projected net profits for 2025, 2026, and 2027 are 318 million RMB, 549 million RMB, and 814 million RMB respectively, with corresponding EPS of 0.74, 1.28, and 1.89 RMB [4].

Investment Rating - The report maintains a "Buy" rating for the company, with expected earnings per share (EPS) of 0.74, 1.28, and 1.89 RMB for the years 2025 to 2027, respectively [4]. Core Insights - The company reported a revenue of 1.768 billion RMB for 2024, representing a year-on-year growth of 41.37%, and a net profit of 179 million RMB, a significant increase of 491.56% compared to the previous year [1][4]. - The company has significantly enhanced its production capacity and efficiency, achieving a record production of 410,200 SiC substrates in 2024, which is a 56.56% increase year-on-year [2][3]. - The company is recognized as the second-largest manufacturer of conductive SiC substrates globally, holding a market share of 22.8% [3]. Summary by Sections Performance Review - In Q4 2024, the company achieved a revenue of 487 million RMB, with a year-on-year growth of 4.32%, and a net profit of 36 million RMB, up 59.74% year-on-year [1]. Operational Analysis - The company has improved its core product capacity, with the Jinan plant steadily increasing output and the Shanghai plant achieving its annual production target ahead of schedule [2]. - The gross profit margin for 2024 was reported at 25.9%, indicating a significant improvement [2]. Research and Development - The company has made advancements in R&D, being the first in the industry to produce defect-free 8-inch substrates using a liquid-phase method, and has a total of 194 invention patents and 308 utility model patents [3]. Profit Forecast and Valuation - The projected net profits for 2025, 2026, and 2027 are 318 million RMB, 549 million RMB, and 814 million RMB, respectively, with corresponding growth rates of 78%, 73%, and 48% [4].

Group 1 - The company reported a revenue of 1.768 billion yuan in 2024, an increase of 41.37% year-on-year, and a net profit of 179 million yuan, marking a return to profitability [1] - The company's stock price has increased nearly 30% year-to-date, reflecting strong market interest in its semiconductor materials [1] - The company specializes in high-quality silicon carbide substrates and has been a pioneer in the commercialization of 2-inch to 8-inch silicon carbide substrates, as well as the introduction of 12-inch substrates [1] Group 2 - In 2024, the company plans to enhance its core product capacity, with the Jinan factory steadily increasing production and the Shanghai factory achieving an annual capacity of 300,000 conductive substrates ahead of schedule [2] - The production of silicon carbide substrates is expected to reach 410,200 pieces in 2024, a growth of 56.56% compared to 2023, with gross margin improving to 32.92%, an increase of 15.39 percentage points year-on-year [2] - The company is preparing for an overseas public offering of H-shares and plans to use the funds for expanding production capacity and enhancing R&D capabilities [2] Group 3 - The company has established business relationships with over half of the top ten power semiconductor manufacturers globally, and its market share is projected to reach 22.8% in 2024, placing it among the international leaders [3] - The company aims to leverage its advantages in capacity layout, technological accumulation, and industry positioning to continuously improve product quality and scale, thereby enhancing overall profitability [3]