SICC CO.(SH:688234) Shanghai Securities·2024-08-27 06:13Investment Rating - The investment rating for the company is "Buy" (maintained) [4][10]. Core Views - The company reported a significant increase in revenue and profitability in the first half of 2024, achieving operating income of 9.12 billion yuan, a year-on-year increase of 108.27%, and a net profit of 1.02 billion yuan [4][5]. - The silicon carbide industry is entering a rapid development phase, with the company leveraging its competitive advantages in key segments of the supply chain [4][5]. - The demand for high-quality conductive silicon carbide substrates is strong in international markets, with over 50% of the top ten global power semiconductor companies becoming clients [4][5]. - The company is focusing on enhancing its research and development capabilities, particularly in the preparation of silicon carbide substrates, to strengthen its technological moat [4][5]. Summary by Sections Financial Performance - In 2024 H1, the company's gross margin improved significantly to 23.01%, an increase of 11.71 percentage points compared to the same period in 2023 [4]. - The core business of silicon carbide substrates generated revenue of 7.53 billion yuan, a year-on-year increase of 102.27%, with a product gross margin of 27.36% [4][5]. Market Outlook - The global silicon carbide device market is expected to reach 8.906 billion USD by 2028, driven by trends in energy electrification and decarbonization [4]. - The company is positioned to lead the domestic market for 8-inch silicon carbide substrates, having achieved mass production capabilities at its Shanghai Lingang factory [4][5]. Profit Forecast - The company's projected net profits for 2024-2026 are adjusted to 2.44 billion yuan, 4.13 billion yuan, and 5.82 billion yuan, with year-on-year growth rates of 634.45%, 68.86%, and 41.17% respectively [4][5].