SCC(SZ:002916)2024-11-14 11:02Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of 147.79 RMB based on a 2025 PE of 30x, reflecting a 42% increase from the previous target price of 104.14 RMB [4][14]. Core Insights - The company reported a revenue of 13.05 billion RMB for the first three quarters, representing a year-on-year increase of 37.92%. The net profit attributable to shareholders was 1.49 billion RMB, up 63.86% year-on-year, with a gross profit margin of 25.91% [9][10]. - In Q3 2024, the revenue was 4.73 billion RMB, a 37.95% increase year-on-year and an 8.45% increase quarter-on-quarter. The net profit attributable to shareholders was 501 million RMB, reflecting a 15.33% year-on-year increase but a 17.60% decrease quarter-on-quarter [10][11]. - The demand for PCB in data centers and automotive electronics has increased, while the communication sector has seen a decline in revenue due to stagnant demand for wireless communication base station products [12][13]. Financial Performance Summary - For the first three quarters, the company achieved a revenue of 13.05 billion RMB, with a net profit of 1.49 billion RMB, and a gross profit margin of 25.91% [9]. - The projected revenues for 2024, 2025, and 2026 are 17.89 billion RMB, 21.11 billion RMB, and 24.44 billion RMB, respectively, with corresponding net profits of 2.05 billion RMB, 2.53 billion RMB, and 2.98 billion RMB [4][14]. - The company’s gross profit margin is expected to improve from 25.7% in 2024 to 26.3% in 2026, indicating a positive trend in profitability [8].