SICC CO.(SH:688234) Soochow Securities·2024-04-15 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved significant revenue growth in 2023, with total revenue reaching 1.25 billion yuan, a year-on-year increase of 199.90%. The net profit attributable to shareholders was -45.72 million yuan, improving by 73.98% year-on-year [2][3] - The company has successfully expanded its overseas market presence, ranking among the top three global suppliers of conductive silicon carbide substrates, with sales volume reaching 226,000 pieces, a 255% increase year-on-year [3] - The company is positioned as a leading domestic substrate manufacturer, benefiting from the growing demand for silicon carbide in the new energy sector [3] Financial Performance Summary - In 2023, the company reported total revenue of 1.25 billion yuan, with a year-on-year growth of 199.90%. The net profit attributable to shareholders was -45.72 million yuan, reflecting a year-on-year improvement of 73.98% [2] - For Q4 2023, the company achieved revenue of 430 million yuan, a year-on-year increase of 189%, and a net profit of 20 million yuan, up 139% year-on-year [2] - The gross margin for Q4 2023 was 17.8%, with a net profit margin of 5.3%, indicating a stable profitability trend [2] Market Position and Expansion - The company has successfully established a production capacity of 300,000 conductive silicon carbide substrates annually at its Shanghai Lingang facility, contributing to its revenue growth [3] - The company has secured long-term cooperation agreements with major global semiconductor manufacturers, including Infineon and Bosch, enhancing its market position [3] - The company is the second globally to announce the mass supply of 8-inch conductive silicon carbide substrates, following Wolfspeed [3] Earnings Forecast and Valuation - The earnings forecast for 2024-2026 has been adjusted, with projected revenues of 2.27 billion yuan, 3.45 billion yuan, and 5.10 billion yuan respectively [3] - The current market capitalization corresponds to price-to-sales ratios of 8.9, 5.9, and 4.0 for 2024, 2025, and 2026 respectively, indicating a favorable outlook for the company's growth in the silicon carbide market [3]