SICC CO.(SH:688234) Huaxin Securities·2024-09-22 10:00Investment Rating - The report maintains a "Buy" rating for Tianyue Advanced [2] Core Views - The company achieved a record high quarterly revenue of 4.86 billion yuan in Q2 2024, representing a year-on-year increase of 98.49% and a quarter-on-quarter growth of 14.1% [2] - The gross margin improved to 23.97%, up from the previous year, indicating enhanced profitability [2] - The company successfully entered the supply chains of major international manufacturers, including Infineon, Bosch, and Onsemi, and has become one of the top three players globally in the conductive silicon carbide substrate market [2][3] Summary by Sections Financial Performance - In the first half of 2024, Tianyue Advanced reported total revenue of 9.12 billion yuan, a year-on-year increase of 108.27%, and a net profit attributable to shareholders of 1.02 billion yuan, marking a turnaround from losses [2] - The company’s net profit excluding non-recurring items reached 962.26 million yuan, also indicating a return to profitability [2] Production Capacity - The Shanghai Lingang factory has achieved a large-scale production capacity of 300,000 conductive substrates annually, with plans for further expansion to 600,000 substrates [2] - The company has successfully transitioned to mass sales of 8-inch products, demonstrating its R&D capabilities [3] Earnings Forecast - Revenue projections for 2024, 2025, and 2026 are 23.43 billion yuan, 34.87 billion yuan, and 42.24 billion yuan, respectively, with corresponding EPS of 0.53 yuan, 0.83 yuan, and 1.28 yuan [3] - The current stock price corresponds to PE ratios of 87.0, 55.3, and 35.7 for the years 2024, 2025, and 2026, respectively, reflecting the company's strong growth potential in the silicon carbide sector [3]