SCC(SZ:002916)2024-09-19 10:43Group 1: Company Overview and Business Focus - The company specializes in high-end PCB manufacturing, focusing on applications in communication devices, data centers, automotive electronics, and medical fields [2] - In the first half of 2024, the company's PCB business in data centers saw significant growth, driven by increased demand for AI-related products and server upgrades [3] - The automotive electronics sector is a key growth area, with a focus on new energy and ADAS, leading to a steady increase in demand for high-end products [3] Group 2: Market Demand and Product Development - The communication market has shown varied demand, with wireless communication base station products not improving significantly, while wired products, especially 400G and above, have seen growth due to AI-related needs [2] - The company has initiated next-generation platform product development in collaboration with downstream clients [3] - The packaging substrate business has experienced notable growth, particularly in BT products, with ongoing efforts to introduce new products and clients [3] Group 3: Production Capacity and Material Costs - PCB factory utilization rates have remained stable at high levels, while packaging substrate factory utilization has slightly decreased due to fluctuations in downstream demand [4] - Key raw materials such as copper foil and prepreg have seen price fluctuations, but overall costs have not significantly impacted the company's operations in the first half of 2024 [4] - The company is expanding its overseas market presence with a factory investment in Thailand, totaling RMB 1.274 billion, with construction progressing steadily [4] Group 4: Future Expansion and Capacity Planning - The company has potential for further expansion in PCB production through technological upgrades and new factory construction in Nantong, leveraging existing land reserves [4] - The company is committed to monitoring market conditions and adjusting production capacity accordingly to meet demand [4]