NCE(SH:605111) Huachuang Securities·2024-08-13 10:08Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 45.4 CNY per share, compared to the current price of 30.29 CNY [1][2]. Core Insights - The company achieved significant revenue growth in Q2 2024, with a year-on-year increase of 30.40% to 5.02 billion CNY, and a quarter-on-quarter increase of 35.01% [1][2]. - Gross margin improved to 36.53%, up 6.85 percentage points year-on-year and 1.77 percentage points quarter-on-quarter [1][2]. - The net profit attributable to shareholders reached 1.18 billion CNY in Q2 2024, reflecting a year-on-year increase of 42.25% and a quarter-on-quarter increase of 17.50% [1][2]. - The company is focusing on optimizing its product structure and expanding into new markets, particularly in the automotive and AI sectors, which are expected to drive future growth [2]. Financial Summary - For H1 2024, the company reported total revenue of 873 million CNY, a year-on-year increase of 15.16% [1][3]. - The net profit attributable to shareholders for H1 2024 was 2.18 billion CNY, representing a year-on-year increase of 47.45% [1][3]. - The company’s revenue projections for 2024-2026 have been revised upwards, with expected net profits of 4.72 billion CNY in 2024, 5.84 billion CNY in 2025, and 7.10 billion CNY in 2026 [2][3].