SCC(SZ:002916) Changjiang Securities·2025-09-14 14:12Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - In the first half of 2025, the company achieved revenue of 10.453 billion yuan, representing a year-on-year growth of 25.63%. The net profit attributable to shareholders was 1.36 billion yuan, up 37.75% year-on-year. The gross margin and net margin were 26.28% and 13.02%, respectively, with increases of 0.08 percentage points and 1.16 percentage points year-on-year [2][5]. - For Q2 2025, the company reported revenue of 5.671 billion yuan, a year-on-year increase of 30.06% and a quarter-on-quarter increase of 18.56%. The net profit attributable to shareholders was 869 million yuan, reflecting a year-on-year growth of 42.92% and a quarter-on-quarter growth of 76.74% [2][5]. Summary by Sections Financial Performance - The company’s PCB business generated 6.274 billion yuan in revenue in the first half of 2025, a year-on-year increase of 29.21%, accounting for 60.02% of total revenue. The gross margin for this segment was 34.42%, an increase of 3.05 percentage points year-on-year [11]. - The packaging substrate business achieved revenue of 1.740 billion yuan, a year-on-year growth of 9.03%, representing 16.64% of total revenue. The gross margin decreased to 15.15%, down 10.31 percentage points year-on-year due to rising costs and production ramp-up challenges [11]. Market Trends and Drivers - The demand for AI-related products has significantly increased, driven by the capital expenditure growth of major cloud service providers, particularly in AI computing infrastructure. This has positively impacted the company's order growth in the PCB business [11]. - The company is actively advancing its projects in Thailand and Nantong, which are expected to support future business expansion [11]. Future Outlook - The company is expected to achieve net profits of 2.987 billion yuan, 3.647 billion yuan, and 4.466 billion yuan for the years 2025, 2026, and 2027, respectively. The corresponding price-to-earnings ratios are projected to be 40.91, 33.52, and 27.37 [11].