SICC CO.(SH:688234)2024-07-17 10:22Investment Rating - The report maintains an "Accumulate" rating for the company [3][7]. Core Views - The company has announced a fundraising plan to raise up to 300 million yuan for the development of an 8-inch automotive-grade silicon carbide substrate project, with a total investment of approximately 386 million yuan and a construction period of 24 months [2]. - For the first half of 2024, the company expects to achieve revenue between 880 million to 980 million yuan, representing a year-on-year increase of 100.91% to 123.74%, and a net profit of 100 million to 110 million yuan, marking a turnaround from losses [2]. Summary by Sections Project Announcement - The company is focusing on the 8-inch silicon carbide substrate, which is projected to become a strategic high ground for industry development. The compound annual growth rate (CAGR) for 8-inch substrates is expected to exceed 70% from 2023 to 2028 [3]. Competitive Advantage - The company has achieved leading sales in the 8-inch silicon carbide substrate market and is one of the few globally to master the liquid-phase method for producing 8-inch crystals. It has also received automotive-grade quality management certification, establishing itself as a supplier to major semiconductor companies like Infineon and Bosch [3]. Financial Performance - The company has reported continuous revenue growth for eight consecutive quarters, with a net profit that has turned positive for four consecutive quarters. In Q2 2024, revenue is expected to be between 454 million to 554 million yuan, with a quarter-on-quarter increase of 6.54% to 30.01% [3]. - The company forecasts significant revenue growth for 2024 to 2026, with projected revenues of 2.134 billion, 3.032 billion, and 4.143 billion yuan respectively, and net profits of 173 million, 230 million, and 422 million yuan [7][8].