SCC(SZ:002916) Chang Jiang Shang Bao·2025-05-12 23:35Core Viewpoint - The market is highly focused on the development of Shennan Circuit, a leading company in the PCB industry, as evidenced by over a hundred institutions conducting on-site research [1] Group 1: Business Performance - In Q1 2023, Shennan Circuit achieved revenue of approximately 48 billion yuan and a net profit attributable to shareholders of about 5 billion yuan, both showing over 20% year-on-year growth [1][2] - The company's revenue for the first three months was 47.83 billion yuan, a 20.75% increase year-on-year, while the net profit was 4.91 billion yuan, up 29.47% year-on-year [2] - The growth in revenue and profit is attributed to increased demand in high-speed network communication, computing power, and the automotive electronics sector [2] Group 2: Product and Market Strategy - Shennan Circuit's PCB business focuses on communication devices, data centers, and automotive electronics, with a notable increase in orders from the wireless communication sector [2] - The company has a diverse range of packaging substrate products, which have seen improved demand, particularly in storage products [3] - The company is expanding its overseas market presence with a factory in Thailand, investing approximately 12.74 billion yuan to enhance global supply capabilities [1][7] Group 3: Financial Health and Expansion - As of the end of 2024, Shennan Circuit's total assets increased from 207.27 billion yuan in 2022 to 253.02 billion yuan [7] - The company maintains a healthy financial position with a debt ratio of 42.14% and cash reserves of 17.08 billion yuan as of March 2023 [7] - Shennan Circuit has a history of steady dividends, proposing a cash dividend of 7.69 billion yuan for 2024, with a payout ratio of 40.97% [8][9] Group 4: Industry Position - According to Prismark, Shennan Circuit is expected to rank fourth among global PCB manufacturers in 2024, an improvement of four positions from 2023 [6] - The company has demonstrated resilience in the PCB industry, achieving continuous revenue and profit growth since 2016, except for a decline in 2023 due to market fluctuations [3][4]