Core Viewpoint - The successful commissioning of the first 12-inch silicon carbide (SiC) substrate processing pilot line at Jingrui SuperSiC marks a significant advancement for Jingcheng in the global SiC substrate technology, transitioning from a follower to a leader in the industry [1] Group 1: Company Developments - The pilot line at Jingrui SuperSiC achieved full domestic equipment development, realizing 100% localization from crystal growth to processing and testing [1] - Jingcheng has overcome key challenges in 12-inch SiC crystal growth, including temperature field uniformity and crystal cracking, achieving a technological breakthrough in large-size crystal growth [1] - The company has successfully produced 12-inch conductive silicon carbide crystals, enhancing its production capabilities [1] Group 2: Industry Implications - SiC materials are expected to significantly improve the heat dissipation of CoWoS structures and reduce packaging size due to their high thermal conductivity and wide process window [1] - The high hardness and thermal stability of SiC materials support the introduction of etching processes, effectively increasing production capacity and yield [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The first 12-inch silicon carbide (SiC) substrate processing pilot line has officially commenced, opening up growth opportunities for the company [7] - The company has achieved a significant technological breakthrough in 12-inch SiC crystal growth, marking a transition from a follower to a leader in global SiC substrate technology [7] - SiC's high thermal conductivity and processing window are expected to enhance the cooling of CoWoS structures and reduce packaging dimensions, making it an ideal material for high-performance applications [7] - The company is actively expanding its production capacity for 6 and 8-inch substrates and has already developed the capability for 12-inch substrates [7] - The forecasted net profit for the company is projected to be 1 billion, 1.2 billion, and 1.5 billion yuan for 2025, 2026, and 2027 respectively, corresponding to a P/E ratio of 58, 47, and 38 times [7] Financial Summary - Total revenue for 2023 is projected at 17,983 million yuan, with a year-on-year growth of 69.04% [1] - The net profit attributable to the parent company for 2023 is expected to be 4,558 million yuan, reflecting a year-on-year increase of 55.85% [1] - The latest diluted EPS for 2023 is estimated at 3.48 yuan per share [1] - The company’s total assets are projected to reach 31,550 million yuan in 2024, with a total liability of 13,616 million yuan [8] - The company's cash flow from operating activities is expected to be 1,773 million yuan in 2024 [8]