Shares of SICC (02631) surged more than 10% during the morning session. At the time of writing, the stock was up 6.84% to HK$105.5, with a trading turnover exceeding HK$405 million.
On the news front, according to Yole, the global power semiconductor market is projected to grow to US$43.3 billion by 2030. Within this, the AI data center segment is expected to reach US$10.6 billion, accounting for nearly a quarter of the total. The compound annual growth rates for silicon carbide (SiC) and gallium nitride (GaN) in the data center market are forecast at 29.5% and 46.3%, respectively.
Furthermore, Infineon anticipates its AI data center revenue will surpass €2.5 billion in the 2027 fiscal year, representing a tenfold increase over three years. STMicroelectronics expects its AI data center revenue to reach US$2 billion by 2027.
CLSA previously noted that SICC's current 8-inch silicon carbide substrate capacity is operating at full utilization. Benefiting from strong data center demand driving sales growth, the brokerage has raised its revenue forecasts for the company's 2027 and 2028 fiscal years by 6% and 4% to RMB 3.359 billion and RMB 3.711 billion, respectively. Its net profit forecasts have been correspondingly increased by 7% and 6%.
The firm has also raised its valuation multiple for the H-shares from 12 times to 14 times price-to-sales. Its target price for the H-shares has been lifted from HK$86.6 to HK$106.6, while maintaining an "Outperform" rating.
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