SICC CO.(SH:688234) Guotou Securities·2024-05-06 23:30Investment Rating - The report maintains a "Buy-A" investment rating for the company, with a target price of 64.57 CNY for the next six months [4][5]. Core Views - The company has shown significant growth in Q1 2024, achieving a revenue of 426 million CNY, a year-on-year increase of 120.66%, and a net profit of 46 million CNY, up 263.73% year-on-year [1][2]. - The silicon carbide industry continues to experience strong demand, particularly in the electric vehicle sector, with the company positioned as a leading manufacturer of silicon carbide substrates in China [2][3]. - The company has made substantial progress in capacity expansion, with the Jinan plant steadily increasing production and the Shanghai Lingang plant accelerating its production ramp-up, achieving its planned capacity ahead of schedule [2][3]. Summary by Sections Financial Performance - In Q1 2024, the company reported a revenue of 426 million CNY, representing a 120.66% increase compared to the previous year, and a net profit of 46 million CNY, which is a 263.73% increase year-on-year [1][2]. - The company expects revenues of 2.31 billion CNY, 3.52 billion CNY, and 4.92 billion CNY for 2024, 2025, and 2026 respectively, with net profits projected at 135 million CNY, 349 million CNY, and 763 million CNY for the same years [4][10]. Technology and Client Development - The company has strengthened its core technology, holding a total of 172 invention patents and 317 utility model patents, with 13 of these patents granted overseas [3]. - The company has established long-term cooperation agreements with major international clients, including Infineon and Bosch, and has begun large-scale supply of 6-inch silicon carbide substrates to these clients [3]. Market Position and Growth Potential - The company is recognized for its industry-leading 6-inch and 8-inch silicon carbide substrates, with a significant portion of its production being supplied to the top ten power semiconductor companies globally [3]. - The report highlights the company's ability to meet the growing demand in the semiconductor market, particularly in the automotive and power electronics sectors, indicating strong future growth potential [2][3].