SCC(002916) 招银国际·2024-10-30 03:02Investment Rating - The report maintains a HOLD rating on Shennan Circuit with a target price adjusted to RMB115, reflecting a 27x 2025E P/E, close to its 3-year average historical forward P/E [2][4]. Core Insights - Shennan Circuit reported a 37.9% year-over-year revenue growth in 3Q24, reaching RMB4.73 billion, which exceeded Bloomberg consensus by 19.7%. However, net profit increased by only 15.3% YoY but declined 17.6% QoQ [2]. - The gross profit margin (GPM) decreased to 25.4% in 3Q24 from 27.1% in 2Q24, attributed to higher sales from lower-margin PCBA business, ramp-up of the Guangzhou factory, and high copper prices [2]. - The company expects PCB revenue to grow by 11% in 2025E, while substrate revenue is projected to grow by 7% in the same year [2]. Financial Summary - Revenue for FY24E is estimated at RMB17,574 million, with a year-over-year growth of 29.9%. For FY25E, revenue is projected to be RMB18,765 million, reflecting a 6.8% growth [3][9]. - The net profit for FY24E is expected to be RMB1,878 million, with a YoY growth of 34.3%, and for FY25E, it is projected to reach RMB2,178 million, indicating a 16.0% growth [3][9]. - The earnings per share (EPS) for FY24E is estimated at RMB3.68, increasing to RMB4.27 in FY25E [3][9]. Market Segmentation - By end market, telecom remains the largest segment, contributing approximately 40% of PCB sales in 3Q24. Other segments include datacom (20%), auto (13%), industrial & medical (10%), and energy (5%) [2]. - The report highlights a strong utilization rate of around 90% for AI-related PCB production, while non-AI production utilization remains between 85-90% [2].