SCC(SZ:002916) ZHONGTAI SECURITIES·2024-10-31 06:38Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported stable performance in Q3, with revenue growth driven by increased project settlements in electronic assembly business. The gross margin slightly decreased due to the growth of lower-margin electronic assembly business and changes in packaging substrate structure [1] - The company is expected to benefit significantly from the AI cycle, particularly in the PCB sector, with improvements in product structure and demand from data centers and automotive electronics [1] Financial Performance Summary - Revenue for 2022 was 13,992 million, with a forecast of 13,526 million for 2023, and expected growth to 17,420 million in 2024, representing a year-on-year growth rate of 29% [1] - Net profit attributable to the parent company was 1,640 million in 2022, projected to decrease to 1,398 million in 2023, but expected to rebound to 2,088 million in 2024, reflecting a 49% growth [1] - Earnings per share (EPS) is expected to increase from 2.73 in 2023 to 4.07 in 2024 [1] Business Overview - The company has a total share capital of 512.88 million shares, with a market price of 104.31 yuan as of October 30, 2024 [1] - The company achieved a revenue of 130.49 billion in the first three quarters of 2024, a year-on-year increase of 37.92%, with a net profit of 14.88 billion, up 63.86% year-on-year [1] - The gross margin for Q3 was reported at 25.91%, with a year-on-year increase of 2.8 percentage points [1] Future Outlook - The company is expected to maintain a strong growth trajectory, with projected net profits of 2,088 million, 2,747 million, and 3,240 million for 2024, 2025, and 2026 respectively [1] - The report anticipates a continued improvement in the PCB business structure, driven by demand in the data center and automotive electronics sectors [1]