SICC CO.(688234) 平安证券·2025-01-25 04:00Investment Rating - The report maintains a "Recommended" investment rating for the company [1]. Core Views - The company is expected to achieve profitability in 2024, with projected revenue between 1.75 billion to 1.85 billion yuan, representing a year-on-year growth of 39.92% to 47.92%. The net profit attributable to the parent company is forecasted to be between 170 million to 205 million yuan, a significant increase compared to the previous year's loss of 45.72 million yuan [4][8]. - The company has successfully commenced mass production of 4-8 inch substrate products and is ramping up production capacity, which is expected to enhance its economies of scale and optimize costs [8][9]. - The launch of the first 12-inch silicon carbide substrate product marks a strategic move into larger substrate sizes, catering to the growing demand in sectors such as electric vehicles and renewable energy [8][9]. Financial Summary - Revenue projections for the company are as follows: 1.25 billion yuan in 2023, increasing to 1.81 billion yuan in 2024, 2.42 billion yuan in 2025, and 3.01 billion yuan in 2026, with year-on-year growth rates of 199.9%, 44.7%, 33.4%, and 24.7% respectively [7][10]. - The net profit is expected to turn positive in 2024, with estimates of 197 million yuan in 2024, 324 million yuan in 2025, and 415 million yuan in 2026, reflecting substantial growth from a loss of 46 million yuan in 2023 [10][11]. - The company's gross margin is projected to improve significantly, reaching 27.2% in 2024 and further increasing to 31.0% in 2025 [11]. Market Position and Strategy - The company is positioning itself as a leader in the silicon carbide substrate market, with a focus on high-quality, automotive-grade products to meet the increasing demand from downstream applications [9][10]. - Plans for an overseas share issuance and listing on the Hong Kong Stock Exchange are in place to enhance the company's capital strength and competitiveness [9].