SICC CO.(688234) 东方财富证券·2024-06-21 10:30Investment Rating - The report maintains a "Buy" rating for Tianyue Advanced (688234) [4][6] Core Views - Tianyue Advanced's performance has reached an inflection point, driven by accelerated overseas validation and economies of scale [1] - The company achieved a significant turnaround in 2023, with revenue growth of 199.90% YoY and a narrowing net loss of 73.91% YoY [2] - In Q1 2024, the company continued its strong performance with a 120.66% YoY revenue increase and a return to profitability [2] - The company has maintained revenue growth for 8 consecutive quarters, with improving gross margins and profitability since Q3 2023 [2] Financial Performance - 2023 revenue reached 1.251 billion yuan, with a net loss of 46 million yuan [2] - Q4 2023 revenue was 426 million yuan, with a gross margin of 17.84% and net profit of 23 million yuan [2] - Q1 2024 revenue was 426 million yuan, with a gross margin of 21.92% and net profit of 46 million yuan [2] - The company forecasts 2024-2026 revenue of 2.134 billion, 3.032 billion, and 4.144 billion yuan respectively, with net profits of 173 million, 230 million, and 423 million yuan [6][7] Operational Highlights - The company has established three major SiC semiconductor material production bases in Jinan, Jining, and Shanghai [2] - Shanghai Lingang factory achieved 300,000 wafer capacity by end-2023, with plans for 960,000 wafer capacity in phase two [2] - 2023 substrate sales reached 226,300 wafers, a 255% YoY increase, making the company a top-three global player in conductive SiC substrates [2] - The company has secured long-term agreements with major international players like Infineon and Bosch, with over 10% share in Infineon's 6-inch conductive substrate procurement [2] Technological Advantages - The company leads in automotive-grade conductive SiC substrates [2] - It has a leading position in 8-inch conductive substrate product layout, quality, and mass supply capabilities [2] - The company has pioneered the use of liquid-phase methods to produce low-defect 8-inch crystals, overcoming key challenges in SiC crystal growth [2] International Expansion - Overseas revenue reached 411 million yuan in 2023, an 822.26% YoY increase [2] - International business gross margin reached 28.95%, significantly higher than domestic operations [2] - The company has successfully entered the supply chains of leading overseas customers with high-quality conductive SiC substrates [2] Market Position - The company has a total market capitalization of 22.736 billion yuan and a circulating market cap of 13.988 billion yuan [3] - It has established cooperation with over 50% of the world's top 10 power semiconductor manufacturers [2] - The company is actively supporting the industry transition to 8-inch products [2]