SICC CO.(688234) Guoxin Securities·2024-09-01 07:40Investment Rating - The investment rating for the company is "Outperform the Market" [1][4][16] Core Views - The company has achieved continuous revenue growth for nine consecutive quarters, with a 2Q24 revenue of 486 million yuan, representing a year-over-year increase of 98.5% and a quarter-over-quarter increase of 14.1% [1] - The gross profit margin has been steadily increasing, reaching 23.97% in 2Q24, which is a year-over-year increase of 13.28 percentage points and a quarter-over-quarter increase of 2.05 percentage points [1] - The company has signed new long-term cooperation agreements with leading global companies such as Infineon and Bosch, enhancing its delivery capabilities and customer base [1] - The Shanghai Lingang factory has improved delivery quality, contributing to a positive feedback loop between customer relationships and technological advancements [1] - The company is expected to maintain a leading position in the conductive silicon carbide substrate market, with projected net profits of 228 million, 381 million, and 552 million yuan for 2024-2026 [1][2] Financial Forecasts - The company’s revenue is projected to grow significantly, with estimates of 2.16 billion yuan in 2024, 3.04 billion yuan in 2025, and 4.20 billion yuan in 2026, reflecting growth rates of 73%, 40.6%, and 37.9% respectively [2][13] - The gross profit margin is expected to improve to 24.24% in 2024, 25.17% in 2025, and 27.23% in 2026 [13][14] - The company’s net profit is forecasted to turn positive in 2024, with a significant increase in subsequent years [2][14]