SCC(SZ:002916) Yin He Zheng Quan·2025-10-31 15:16Investment Rating - The report maintains a "Recommended" rating for the company [3]. Core Insights - The company achieved record high performance in Q3 2025, with revenue reaching 16.754 billion yuan, a year-on-year increase of 28.39%, and a net profit attributable to shareholders of 2.326 billion yuan, up 56.30% year-on-year [7]. - The demand for AI acceleration cards, switches, optical modules, servers, and related products continues to rise, contributing to increased orders and revenue for storage packaging substrate products [7]. - The company is expanding its production capacity with new facilities, including the Nantong Phase IV and a factory in Thailand, which are expected to enhance PCB production capabilities [7]. - The company's gross margin improved significantly in Q3, reaching 31.39%, an increase of 5.99 percentage points year-on-year and 3.8 percentage points quarter-on-quarter [7]. - The projected net profit for 2025 to 2027 is expected to be 3.319 billion yuan, 4.120 billion yuan, and 4.820 billion yuan, respectively, with corresponding EPS of 4.98 yuan, 6.18 yuan, and 7.23 yuan [7]. Financial Forecast Summary - Revenue is forecasted to grow from 17.907 billion yuan in 2024 to 31.244 billion yuan in 2027, with growth rates of 32.4%, 27.4%, 21.0%, and 13.2% respectively [2]. - The net profit attributable to shareholders is expected to increase from 1.878 billion yuan in 2024 to 4.820 billion yuan in 2027, with growth rates of 34.3%, 76.8%, 24.1%, and 17.0% respectively [2]. - The gross margin is projected to improve from 24.8% in 2024 to 28.0% in 2027 [2]. - The company’s PE ratio is expected to decrease from 80.89 in 2024 to 31.51 in 2027, indicating a more attractive valuation over time [2].