SCC(002916) 长江证券·2025-03-17 07:02Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Insights - In 2024, the company achieved operating revenue of 17.907 billion yuan, a year-on-year increase of 32.39%, and a net profit attributable to shareholders of 1.878 billion yuan, up 34.29% year-on-year. The gross margin and net margin were 24.83% and 10.49%, respectively, reflecting increases of 1.40 percentage points and 0.16 percentage points year-on-year [3][4]. - In Q4 2024, the company reported operating revenue of 4.858 billion yuan, a year-on-year increase of 19.51% and a quarter-on-quarter increase of 2.74%. However, the net profit attributable to shareholders was 390 million yuan, down 20.50% year-on-year and 22.22% quarter-on-quarter [3][4]. - The company's PCB business showed robust growth, with revenue of 10.494 billion yuan, a year-on-year increase of 29.99%, and a gross margin of 31.62%, up 5.07 percentage points year-on-year. Conversely, the packaging substrate business faced a decline in profitability [8]. Business Segment Summary - The PCB business demonstrated strong growth, while the packaging substrate business's profitability declined. The electronic assembly business also saw revenue growth of 2.823 billion yuan, a year-on-year increase of 33.20%, with a gross margin of 14.40%, down 0.26 percentage points year-on-year [8]. - The decline in profitability in Q4 was attributed to several factors, including a significant reduction in government subsidies, rising raw material costs, and the early-stage ramp-up of new projects affecting costs and expenses [8]. - Despite challenges in the packaging substrate business, the company experienced rapid growth due to increased demand in the communication sector, data center market, and automotive electronics, with orders from automotive electronics growing over 50% for the third consecutive year [8]. Financial Projections - The company is projected to achieve net profits of 2.531 billion yuan, 3.033 billion yuan, and 3.549 billion yuan for the years 2025, 2026, and 2027, respectively. The corresponding price-to-earnings ratios are expected to be 28.11, 23.46, and 20.05 [8].