HK Stock Market Move | SICC Co., Ltd. (02631) has risen over 6% again, as the high-quality 8-inch SiC wafers are in short supply. The company's profit recovery is expected to be further realized.

SICC Co., Ltd. (02631) has risen over 6% again, and as of the time of writing, it is up 5.59% at HKD 68, with a trading volume of HKD 98.5712 million. In the news, starting in July, over 20 global power semiconductor companies have begun their second round of price increases this year, ranging from 10% to 25%, covering all categories including silicon-based MOSFET/IGBT, SiC, and GaN. HAITONG INT'L points out that SiC mainly targets high-voltage scenarios in data centers, and the current core issue in the industry is structural differentiation: there is a shortage of high-yield 8-inch SiC wafers, and the procurement cycle for automotive-grade SiC MOSFETs remains quite long; however, the supply of standard 6-inch SiC has begun to exceed demand, leading to a price war that is accelerating the decline in SiC prices. Soochow Hong Kong has released a research report stating that in Q1 2026, as 8-inch products are rapidly ramping up, SICC Co., Ltd.'s gross profit margin is expected to recover to nearly 20%, with the revenue proportion from 8-inch products increasing to about 45%, indicating a significant improvement in profitability compared to 2025. By Q2 2026, the company has proposed price increases for new orders and expedited orders beyond the newly added capacity for some customers. With the ongoing optimization of the supply-demand structure, improvements in product mix, and release of 8-inch capacity, the company's profit recovery is expected to further materialize.