SCC(SZ:002916)2024-10-31 06:43Investment Rating - The investment rating for the company is "Buy" [1][2] Core Views - The company has achieved significant growth in the first three quarters of 2024, with revenue reaching RMB 13.049 billion, a year-on-year increase of 37.92%, and a net profit attributable to shareholders of RMB 1.488 billion, up 63.86% year-on-year [2] - The company's PCB business is capitalizing on structural opportunities, while the packaging substrate segment is accelerating the introduction of high-end products [2] - The report maintains a positive outlook on the company's performance, supported by product structure optimization and operational efficiency improvements [2] Financial Performance Summary - For the first three quarters of 2024, the company reported a gross margin of 25.91%, an increase of 2.79 percentage points year-on-year, and a net profit margin of 11.40%, up 1.80 percentage points year-on-year [2] - In Q3 2024, the company achieved revenue of RMB 4.728 billion, a year-on-year increase of 37.95% and a quarter-on-quarter increase of 8.45% [2] - The company’s EPS for 2024 is projected to be RMB 4.04, with corresponding P/E ratios of 26.0 for 2024, 22.3 for 2025, and 19.4 for 2026 [2][3] Market Position and Strategy - The company is focusing on optimizing its PCB structure driven by AI and is expected to benefit from the recovery in the BT substrate market [2] - The new factory in Guangzhou has enhanced the company's production capabilities, allowing for mass production of products with 16 layers and above [2] - The company is advancing its "3 in one" strategy to explore new markets [2]