SCC(SZ:002916)2024-11-07 15:08Financial Performance - In Q3 2024, the company's revenue reached 47.28 billion RMB, representing a quarter-on-quarter growth of 8.45% due to increased project settlements in the electronic assembly business [1] - The overall gross margin slightly decreased, influenced by the growth in electronic assembly business which typically has a lower margin compared to the company's average [1] - The new factory in Guangzhou for packaging substrates is ramping up production, but rising raw material prices have negatively impacted the gross margin [1] PCB Business Development - The PCB business focuses on communication equipment, with key expansions in data centers (including servers) and automotive electronics [1][2] - In Q3 2024, PCB revenue in the data center and automotive electronics sectors increased compared to Q2, while revenue from the communication sector saw a decline due to stagnant demand for wireless communication base station products [1][2] Market Trends and Strategies - The data center sector is a key focus for the PCB business, with significant growth driven by AI server demand and upgrades in general server platforms [2] - The company is actively involved in the development of next-generation platform products in collaboration with downstream clients [2] - The automotive electronics market is evolving, with higher design requirements for PCB in new energy and ADAS fields, leveraging the company's existing technology advantages [2] Production Capacity and Expansion - The company has factories in Shenzhen, Wuxi, Nantong, and plans for a new facility in Thailand with a total investment of 12.74 billion RMB [2][3] - There is potential for further capacity expansion through technological upgrades in existing factories and new construction in Nantong [2][3] - The Wuxi second-phase factory has achieved monthly breakeven since its launch in September 2022, while the Guangzhou packaging substrate project is in the early stages of ramping up production [3] Technology and Product Development - The company has made progress in FC-BGA technology, achieving mass production capabilities for products with up to 16 layers and ongoing certification for 20-layer products [3] - The electronic assembly business is positioned as a downstream segment of PCB manufacturing, focusing on providing integrated solutions for communication, data centers, medical, and automotive electronics [3] Compliance and Disclosure - The company adhered to information disclosure regulations during the investor relations activity, ensuring no significant undisclosed information was leaked [3]