NCE(SH:605111) CMS·2024-08-13 03:44Investment Rating - The report maintains an "Accumulate" investment rating for the company [2][5]. Core Views - The company achieved record high revenue in Q2, with a continuous increase in gross margin for four consecutive quarters [2]. - The company is expanding its product offerings in IGBT and is entering the third-generation semiconductor and power IC sectors, supplying to leading international clients in AI computing [2][3]. - The revenue for H1 2024 reached 873 million, a year-on-year increase of 15.16%, with a net profit of 218 million, up 47.45% year-on-year [3]. - The gross margin for H1 2024 was 35.78%, an increase of 5.24 percentage points year-on-year, while the net margin was 24.72%, up 5.56 percentage points year-on-year [3]. - The company’s revenue structure has improved, leading to cost optimization and a more aggressive pricing strategy in certain product areas [3]. Financial Performance Summary - For H1 2024, the revenue breakdown by product type shows: - IGBT: Revenue of 141 million, down 22.64% year-on-year, accounting for 16.2% of sales [3]. - SGT-MOS: Revenue of 360 million, up 40.29% year-on-year, accounting for 41.44% of sales [3]. - SJ-MOS: Revenue of 102 million, up 8.49% year-on-year, accounting for 11.78% of sales [3]. - Trench MOS: Revenue of 255 million, up 19.64% year-on-year, accounting for 29.3% of sales [3]. - The company’s revenue forecast for 2024-2026 is projected at 1.87 billion, 2.27 billion, and 2.68 billion respectively, with corresponding net profits of 459 million, 547 million, and 636 million [2][9]. Market Position and Strategy - The company is recognized as a leading domestic MOSFET power device manufacturer, with a growing presence in AI computing, automotive electronics, and photovoltaic energy storage sectors [2][3]. - The company has established partnerships with major clients in the automotive electronics sector, significantly increasing product supply to BYD [3]. - The company is actively managing inventory in the photovoltaic sector, anticipating a recovery in demand for IGBT products in H2 2024 [3].