SCC(002916) 招银国际·2025-03-17 08:03Investment Rating - The report upgrades the investment rating of the company to "Buy" with a target price of RMB 146.81, up from a previous target price of RMB 115.00, indicating a potential upside of 14.7% from the current stock 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 slightly below Bloomberg's consensus [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]. - 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 providers, and faster-than-expected penetration of high-end autonomous driving applications [1][2]. - Net profit forecasts for fiscal years 2025 and 2026 have also been increased by 12% and 16% respectively, despite a slight decline in gross margin due to rising production costs [1]. Financial Summary - For FY24, the company expects sales revenue to reach RMB 21.6 billion, with a year-on-year growth of 20.3% [2]. - The gross margin is projected to be 25.1% in FY25, with net profit expected to be RMB 2.4 billion, reflecting a 29.4% year-on-year growth [2][10]. - The company’s PCB business revenue is anticipated to grow by 25% in 2025, supported by strong demand in data centers and automotive sectors [6]. - The baseboard business is expected to see an 18% revenue increase in 2025, driven by rapid growth in storage product revenues [6]. Market Position - The company is positioned to benefit from the trend of self-sufficiency in the semiconductor industry, leveraging its leading position in the PCB market and expansion of FC-BGA substrate production lines [6].