SICC CO.(SH:688234) Ping An Securities·2024-07-15 12:30Investment Rating - The report maintains a "Recommended" investment rating for the company [2][6]. Core Insights - The company is expected to achieve a revenue of between 880 million to 980 million yuan in the first half of 2024, representing a year-on-year growth of 100.91% to 123.74% [4]. - The company anticipates a net profit attributable to shareholders of between 100 million to 110 million yuan, marking an increase of 172 million to 182 million yuan compared to the same period last year, thus achieving profitability [4]. - The growth in revenue and profit is attributed to the increasing demand for silicon carbide materials in the electric vehicle and renewable energy sectors, as well as enhanced cooperation with leading manufacturers [4][6]. - The company plans to raise 300 million yuan through a private placement to enhance its production capabilities for 8-inch silicon carbide substrates, aiming to capture a first-mover advantage in this segment [4][6]. Financial Summary - The company reported a significant increase in revenue from 1.25 billion yuan in 2023 to an estimated 2.46 billion yuan in 2024, reflecting a year-on-year growth of 96.8% [5]. - The net profit is projected to turn positive, with estimates of 237 million yuan in 2024, compared to a loss of 46 million yuan in 2023 [5]. - The gross margin is expected to improve from 15.8% in 2023 to 31.5% in 2024, indicating enhanced profitability [11]. - The company's earnings per share (EPS) is forecasted to be 0.55 yuan in 2024, up from a loss of 0.11 yuan in 2023 [11]. Industry Outlook - The silicon carbide substrate market is anticipated to experience sustained growth due to increasing demand in the electric vehicle and renewable energy sectors [6]. - The company has established a strong market position in both semi-insulating and conductive silicon carbide substrates, with plans to expand its production capacity significantly [6]. - The report suggests that the company is well-positioned to benefit from the long-term growth opportunities in the silicon carbide sector, particularly with its focus on 8-inch substrates [6].