Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is expected to benefit significantly from the large-size silicon carbide and space photovoltaic industrialization [1] - The company's performance in 2025 is projected to meet expectations, with a forecasted net profit of 1.007 billion yuan, a year-on-year decrease of 59.89% [1] - The demand for space and overseas photovoltaic equipment is strong, positioning the company to benefit from this trend [1] - The company has planned a total production capacity of 900,000 silicon carbide substrates, with new applications opening up for 12-inch substrates [1] - The company is positioned as a leader in providing integrated solutions for silicon wafers, advanced packaging, and advanced processes [1] Financial Summary - Total revenue for 2023 is projected at 17.983 billion yuan, with a year-on-year growth of 69.04% [1] - The net profit attributable to the parent company for 2025 is forecasted at 1.007 billion yuan, down from 2.510 billion yuan in 2024 [1] - The earnings per share (EPS) for 2025 is expected to be 0.77 yuan, with a price-to-earnings (P/E) ratio of 61.04 based on the current price [1] - The company’s gross margin is expected to decline to 24.79% in 2025, with a net profit margin of 8.36% [8]

Core Viewpoint - The silicon carbide (SiC) sector has gained significant attention, with a 5.76% increase in market performance on September 5, driven by NVIDIA's plan to replace silicon with SiC in the advanced packaging of its next-generation Rubin processors [1][2]. Group 1: Market Reaction - The market response has been enthusiastic, with a net inflow of 2.19 billion in the SiC sector [2]. - Companies are increasingly positioning themselves in the SiC field, with notable developments such as the completion of the first domestic SiC MOSFET and SBD process platform by Zhanxin Electronics, which is backed by Magmi Tech [2]. - Other companies like Times Electric, Crystal Rise, and Blue Ocean Huaten are also making strides in SiC technology, indicating a growing industry focus [2]. Group 2: Industry Development Trends - The demand for high-performance power semiconductor devices is experiencing explosive growth due to the rapid development of industries such as 5G communication, new energy vehicles, and photovoltaic power generation [3]. - SiC is positioned as an ideal material to meet the needs of these sectors, highlighting its broad market prospects [3]. - NVIDIA's initiative is expected to accelerate the industrialization of SiC, revealing significant future market space and business opportunities for investors [3].