SCC(SZ:002916) Ping An Securities·2025-11-04 10:22Investment Rating - The report maintains a "Recommended" investment rating for the company [1]. Core Views - The company has achieved significant revenue growth, with a 28.39% year-over-year increase in revenue to 16.754 billion yuan and a 56.30% increase in net profit to 2.326 billion yuan for the first three quarters of 2025 [5][9]. - The company is positioned to benefit from the domestic substitution of semiconductor substrates, with a diverse range of packaging substrate products that cater to various applications, including mobile smart terminals and servers/storage [9][10]. - The report projects an increase in net profit for the years 2025 to 2027, with estimates of 3.202 billion yuan, 4.698 billion yuan, and 5.893 billion yuan respectively, reflecting a strong growth trajectory [10][12]. Financial Summary - Revenue projections for the company are as follows: 17.907 billion yuan in 2024, 22.922 billion yuan in 2025, 29.110 billion yuan in 2026, and 36.388 billion yuan in 2027, with year-over-year growth rates of 32.4%, 28.0%, 27.0%, and 25.0% respectively [8][12]. - The company's net profit is expected to grow significantly, with projections of 3.202 billion yuan in 2025, 4.698 billion yuan in 2026, and 5.893 billion yuan in 2027, indicating a robust growth rate [10][12]. - Key financial ratios indicate improving profitability, with gross margins expected to rise to 30% by 2026 and net profit margins reaching 16.2% by 2027 [12]. Market Position - The company is recognized as a leading domestic IC substrate manufacturer, benefiting from the increasing demand for AI computing power, structural growth in the storage market, and the rise of automotive electronics [9][10]. - The company has successfully introduced new high-end DRAM products, leading to a significant increase in orders for storage products [9][10].