SCC(SZ:002916)2024-07-17 14:09Group 1: Company Performance - The company anticipates a significant increase in performance for the first half of 2024, driven by a high capacity utilization rate and a year-on-year revenue growth due to the acceleration of AI applications and server upgrades [2] - The preliminary financial data indicates that profit margins have improved due to optimized product structure [2] Group 2: Business Segments - The PCB business focuses on high-end product design, development, and manufacturing, primarily serving communication equipment, data centers, automotive electronics, and industrial control sectors [2] - In the automotive electronics sector, the company targets both domestic and overseas Tier 1 customers, emphasizing new energy and ADAS applications [3] - The demand for PCB products in the automotive electronics field has been maintained, with a focus on high-frequency and HDI products [3] Group 3: Market Trends and Impact - The demand for high-performance and high-speed network products is increasing due to the rapid evolution of AI and its applications, impacting the company's PCB business positively [3] - The company is adapting to the growing needs for edge computing and high-speed data transmission in various terminal applications [3] Group 4: Manufacturing and Production - The PCB factory's utilization rate has increased compared to Q1 2024, while the packaging substrate factory's utilization remains stable [4] - The company has made progress in the production capabilities of FC-BGA packaging substrates, with mass production capabilities for 14-layer and below products [3] Group 5: Raw Material Costs - The prices of key raw materials have remained stable from 2023 to Q1 2024, although there has been a recent increase in prices for some auxiliary materials due to fluctuations in commodity prices [4] - The company is closely monitoring international commodity price changes and maintaining communication with suppliers and customers [4]