SICC CO.(SH:688234) Ping An Securities·2024-04-13 16:00Investment Rating - The report maintains a "Recommendation" rating for the company [2][6] Core Viewpoints - The company achieved a revenue of 1.251 billion yuan in 2023, representing a year-on-year growth of 199.90%, while narrowing its net loss to 45.72 million yuan [4][9] - The company has become the second largest player in the global conductive silicon carbide substrate market, with a production of 262,000 pieces in 2023, up 268.25% year-on-year [4][6] - The company signed long-term supply agreements with major international clients such as Infineon and Bosch, enhancing its market position [6][4] Financial Performance Summary - Revenue for 2023 was 1.251 billion yuan, with a projected revenue of 2.353 billion yuan for 2024, 3.674 billion yuan for 2025, and 5.084 billion yuan for 2026 [5][9] - The gross margin for 2023 was 15.81%, an increase of 21.56 percentage points year-on-year, while the net margin was -3.66%, improving by 38.36 percentage points year-on-year [4][11] - The company expects to achieve profitability in 2024 with a net profit forecast of 131 million yuan [9][11] Production and Capacity Summary - The Shanghai Lingang factory commenced product delivery in mid-2023, achieving rapid capacity ramp-up ahead of schedule [4][6] - The company plans to continue expanding its production capacity, with a target of 300,000 pieces by 2026 [4][6] Market Position and Outlook - The demand for silicon carbide substrates is expected to grow significantly due to the increasing needs in the electric vehicle and renewable energy sectors [6][4] - The company is well-positioned as one of the earliest players in both semi-insulating and conductive silicon carbide substrates, indicating a strong competitive advantage [6][4]