SICC CO.(SH:688234) ZHONGTAI SECURITIES·2024-05-06 02:00Investment Rating - The report maintains a "Buy" rating for the company, with a market price of 55.54 CNY per share [1]. Core Insights - The company reported a significant revenue increase of 121% year-on-year in Q1 2024, with a net profit of 0.46 billion CNY, marking a turnaround from a loss in the previous year [3]. - The company has secured long-term orders with major clients such as Infineon and Bosch, which is expected to drive revenue growth [4]. - The emergence of the 800V era in electric vehicles is anticipated to catalyze demand for silicon carbide (SiC) products, with a notable increase in the market penetration of SiC in 800V models [5]. - The company is expanding its production capacity, with plans to increase output at its Lingang plant to 960,000 pieces per year, which will support future growth [6]. - Revenue forecasts for 2024-2026 are set at 24.1 billion CNY, 34.5 billion CNY, and 50.0 billion CNY respectively, with corresponding price-to-sales ratios of 10, 7, and 5 [7]. Financial Performance Summary - The company’s revenue for 2022 was 417 million CNY, with projections of 1,251 million CNY for 2023 and 2,410 million CNY for 2024, reflecting a year-on-year growth rate of 200% [1]. - Net profit is expected to turn positive in 2024, reaching 147 million CNY, with a significant growth rate of 422% compared to 2023 [1]. - Earnings per share (EPS) are projected to improve from -0.11 CNY in 2023 to 0.34 CNY in 2024, and further to 1.30 CNY by 2026 [1].