SICC CO.(SH:688234) Ping An Securities·2026-02-03 06:12Investment Rating - The report maintains a "Recommended" rating for Tianyue Advanced (688234.SH) [1] Core Views - The company is actively expanding its large-size product offerings, but declining product prices are putting pressure on gross margins [1][7] - For 2025, the company expects revenue to be between 1.45 billion and 1.5 billion yuan, representing a year-over-year decrease of 17.99% to 15.17% [4][7] - The projected net loss attributable to shareholders for 2025 is between 225 million and 185 million yuan, a significant decline of 225.68% to 203.34% compared to the previous year [4][7] - The company has a strong first-mover advantage in the 12-inch silicon carbide substrate market, with increasing demand driven by the growth of the global electric vehicle and renewable energy sectors [7][8] Financial Summary - Revenue for 2023 is projected at 1.25 billion yuan, with a year-over-year growth of 199.9%, followed by a decrease to 1.47 billion yuan in 2025 [6][10] - The gross margin is expected to be 17.5% in 2025, down from 25.9% in 2024 [6][10] - The company anticipates a return to profitability in 2026 with a net profit of 100 million yuan and further growth to 345 million yuan in 2027 [6][10] - The company has established a product matrix for 6/8/12-inch silicon carbide substrates, enhancing its competitive position in the market [8] Market Position and Strategy - The company has successfully established partnerships with leading firms in the optical field, expanding its customer base and product applications [8] - The introduction of the first 12-inch silicon carbide substrate is expected to significantly increase chip production efficiency and reduce costs [8] - The company is focusing on maintaining its technological leadership through continuous investment in R&D, despite the challenges posed by rising sales and R&D expenses [7][8]