SCC(002916) 招银国际·2025-03-17 08:04Investment Rating - The report upgrades the investment rating of the company to "Buy" with a target price of RMB 146.81, up from the previous target price of RMB 115.00, indicating a potential upside of 14.7% from the current price of RMB 128.00 [1][3]. Core Insights - The company reported a revenue growth of 32.4% year-on-year to RMB 17.9 billion for the fiscal year 2024, exceeding both the report's and Bloomberg's consensus estimates [1][2]. - Net profit increased by 34.3% year-on-year to RMB 1.9 billion, aligning with the report's forecast but falling short of Bloomberg's consensus by 2% [1][2]. - The gross margin improved to 24.8% from 23.4% in 2023, primarily due to recovering demand, although partially offset by the ramp-up of new factory capacity [1][2]. - Revenue forecasts for fiscal years 2025 and 2026 have been raised by 15% and 21%, respectively, driven by increased capacity utilization, accelerated capital expenditures from domestic cloud vendors, and faster-than-expected penetration of high-end autonomous driving applications [1][2][6]. - Net profit forecasts for fiscal years 2025 and 2026 have been adjusted upward by 12% and 16%, respectively, despite a slight decline in gross margin due to rising production costs associated with the new Guangzhou factory [1][2]. Financial Summary - For FY24, the company expects sales revenue of RMB 21.6 billion, with a year-on-year growth of 20.3% [2][10]. - The gross margin is projected to be 25.1% in FY25 and gradually increase to 26.2% by FY27 [2][10]. - Net profit is forecasted to reach RMB 2.4 billion in FY25, reflecting a year-on-year growth of 29.4% [2][10]. - The company’s earnings per share (EPS) is expected to be RMB 4.74 in FY25, with a price-to-earnings (P/E) ratio of 27.0 [2][10]. Business Segment Performance - PCB business revenue grew by 30% to RMB 10.5 billion, driven by strong demand from data centers and automotive sectors [6]. - The gross margin for PCB business is expected to improve to 31.6% in FY24, benefiting from enhanced capacity utilization and an optimized product mix [6]. - The baseboard business saw a revenue increase of 37.5% to RMB 3.2 billion, although margins were pressured due to rising raw material costs and production ramp-up challenges [6]. Market Position - The company is positioned to benefit from the trend of self-sufficiency in the semiconductor supply chain in China, leveraging its leading position in the PCB market and expansion of FC-BGA substrate production lines [6].