Investment Rating - The report assigns an "Accumulate-A" rating for the company, indicating a positive outlook for investment [1][6]. Core Insights - The company is a leading player in the mass supply of automotive-grade conductive silicon carbide substrates, with a significant increase in production capacity enhancing profitability [1][4]. - The demand for silicon carbide power devices is accelerating, particularly in the electric vehicle sector, with the market expected to reach nearly 10billionby2029[3][4].−Thecompanyhasestablishedstablepartnershipswithrenownedinternationalclients,withcurrentordersexceeding2billionyuan[3][4].SummarybySections1.FocusonSiliconCarbideSubstrateProducts−Thecompanyspecializesintheresearch,production,andsalesofsiliconcarbidesubstrates,whicharewidelyusedinmicrowaveandpowerelectronics[12].−Therevenuefromsiliconcarbidesubstrateshasshownsignificantgrowth,withaCAGRof59.142.16 billion by 2027, with the company positioned to benefit from this expansion [4][21]. 3. Demand: Accelerating Penetration of Silicon Carbide in Automotive Applications - The penetration rate of silicon carbide power devices in electric vehicles is increasing, with over 70% of the market expected to be in this sector [3][4]. - The company has a strong order backlog and is well-positioned to meet the growing demand for high-quality conductive silicon carbide substrates from major international manufacturers [3][4]. 4. Profit Forecast and Valuation - The company is expected to achieve revenues of 1.726 billion yuan in 2024, with a net profit of 192 million yuan, reflecting a significant turnaround from previous losses [6][15]. - The projected earnings per share (EPS) for 2024 is 0.45 yuan, with a price-to-earnings (P/E) ratio of 145.9x based on the closing price of 66.0 yuan on November 7, 2024 [6][15].
SICC CO.(688234) 山西证券·2024-11-08 05:55