SICC (688234.SS): 3Q26 NI beat consensus with GM improving to 27.5%; EV 800V and AI power demand drive growth

SICC's 3Q26 revenue nearly doubled YoY but came in below Bloomberg consensus, while gross margin improved sequentially; a sharp decline in the opex ratio drove operating margin expansion and net income well above consensus, which Goldman Sachs attributes mainly to better cost control and operating leverage rather than revenue or margin beats. Growth was supported by rising penetration of 800V high-voltage platforms in NEVs driving automotive-grade conductive SiC substrate shipments, together with new demand from AI server power supplies, solar and energy storage, and high-power fast charging. The company continues to upgrade its product mix toward higher-margin 8-inch SiC substrates, with management expecting 8-inch products to account for a materially larger share of shipments. Goldman Sachs lowers its earnings estimates on more conservative substrate shipment assumptions but remains positive on longer-term growth from accelerating SiC adoption in NEVs and data centers;