SICC (688234.SS): Asia Leadership Summit 2026 Takeaways — SiC Expanding in EVs; AIDC a New Opportunity; Neutral
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Goldman Sachs reaffirmed its positive fundamental view of SICC (Tianyue Advanced, 688234.SS) after meeting management at the Asia Leadership Summit 2026 in Hong Kong (August 31–September 2), forecasting a +87% net profit CAGR over 2026–28E. Drivers include rising SiC penetration across end markets, mix upgrades toward 8-/12-inch substrates, share gains from R&D and capacity expansion, and margin expansion from mix and yield improvements. Management sees SiC expanding into more budget EV models and enabling fast charging, rising SiC power-semiconductor penetration in AI data centers (AIDC) as a new upside driver, and end markets extending to AI glasses; revenue growth should come mainly from substrate shipment volume rather than price increases. On valuation grounds, Goldman maintains Neutral with a 12-month target of RMB104, derived from 32.2x 2029E P/E; at RMB101.20 (September 2 close), upside is just 2.8%. Goldman models revenue rising from RMB1,464.9m in 12/25 to RMB5,683.6m in 12/28E, with EPS swinging from –RMB0.43 to RMB3.49. Key upside/downside risks: the ramp pace of 12-inch substrates, 6-/8-inch price declines, and the speed of gross-margin improvement.
Key exhibits
Exhibit 1
