SCC(SZ:002916)2024-08-28 07:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation that the company's stock price will outperform the benchmark index by more than 20% over the next 6-12 months [3]. Core Views - The company experienced significant growth in H1 2024, with revenue reaching 8.32 billion RMB, a year-on-year increase of 37.91%, and a net profit of 0.987 billion RMB, up 108.32% year-on-year. The adjusted net profit was 0.904 billion RMB, reflecting a 112.38% increase [3]. - The PCB business capitalized on structural opportunities, achieving revenue of 4.855 billion RMB, a 25.09% increase, and a gross margin of 31.37%, up 5.52 percentage points [3]. - The packaging substrate business saw revenue growth of 94.31%, reaching 1.596 billion RMB, with a gross margin of 25.46%, an increase of 6.66 percentage points [3]. - The company is expected to continue benefiting from the recovery in the PCB and BT substrate industries, with projected revenues of 17.239 billion RMB, 20.462 billion RMB, and 23.330 billion RMB for 2024, 2025, and 2026, respectively [4]. Summary by Sections Financial Performance - In H1 2024, the company achieved a gross margin of 26.20%, a year-on-year increase of 3.27 percentage points, and a net profit margin of 11.87%, up 4.01 percentage points [3]. - For Q2 2024, revenue was 4.360 billion RMB, a 34.19% year-on-year increase, with a net profit of 0.608 billion RMB, reflecting a 127.18% increase year-on-year [3]. Revenue Projections - The company is projected to achieve revenues of 17.239 billion RMB in 2024, 20.462 billion RMB in 2025, and 23.330 billion RMB in 2026, with corresponding net profits of 2.114 billion RMB, 2.463 billion RMB, and 2.814 billion RMB [4]. Valuation Metrics - The report indicates that the company has a price-to-earnings (P/E) ratio of 25.4 for 2024, 21.8 for 2025, and 19.1 for 2026, suggesting a reasonable valuation compared to its growth prospects [4].