SCC(SZ:002916) Caixin Securities·2024-09-05 09:00Investment Rating - The report assigns a "Buy" rating to the company, indicating a strong potential for investment returns exceeding the market index by over 15% [1][2]. Core Insights - The company is expected to achieve significant revenue growth driven by its unique "3-In-One" business model, which integrates printed circuit board (PCB) production, packaging substrate business, and electronic assembly services [2][3]. - Revenue forecasts for 2024, 2025, and 2026 are projected at 172.72 billion, 203.93 billion, and 229.19 billion yuan respectively, with net profits expected to reach 21.79 billion, 26.67 billion, and 30.92 billion yuan [2][3]. - The company has successfully optimized its product structure, leading to record-high gross margins, with the PCB business achieving a gross margin of 31.37% in the first half of the year [1][2]. Financial Summary - The company reported a revenue of 83.21 billion yuan in the first half of the year, representing a year-on-year growth of 37.91% [1]. - The gross profit margin for the first half of the year was 26.20%, an increase of 3.27 percentage points year-on-year, while the net profit margin was 11.86%, up by 4.01 percentage points [1]. - The earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 4.25 yuan, 5.20 yuan, and 6.03 yuan respectively, reflecting a positive growth trajectory [2][3]. - The price-to-earnings (P/E) ratio is expected to decrease from 23.40 in 2024 to 16.48 in 2026, indicating improving valuation metrics [2][3]. Business Development - The company is actively expanding its production capabilities, with the second phase of the Wuxi substrate factory achieving breakeven and the Guangzhou packaging substrate project in the early stages of ramping up production [2]. - The demand for high-end automotive electronics and AI-related products is expected to drive further growth, as the company enhances its market development efforts [2][3]. - The report highlights the company's strategic focus on leveraging technological advancements and market opportunities to solidify its leading position in the industry [2].