NCE(SH:605111) Guotai Junan Securities·2024-08-14 13:36Investment Rating - The report maintains a "Buy" rating for the company [4] - The target price is set at 39.80, with the current price at 30.68 [4] Core Insights - The company's profitability continues to recover, with rapid growth in emerging sectors becoming a new growth driver [2][4] - For the first half of 2024, the company reported revenue of 873 million, a year-on-year increase of 15.16%, and a net profit attributable to shareholders of 218 million, up 47.45% year-on-year [9] - The growth in revenue and profit is attributed to the optimization of product and customer structures, accelerated inventory digestion, and a gradual recovery in downstream market demand [9] Financial Performance - The company’s Q2 2024 revenue was 502 million, a quarter-on-quarter increase of 35.01%, with a net profit of 118 million, up 17.5% [9] - The gross margin for Q2 2024 was 35.78%, marking three consecutive quarters of growth [9] - The company’s EPS for 2024 is projected to be 1.13, with a downward adjustment from previous estimates due to stock expansion and lower-than-expected product price rebounds [9][10] Market Position and Growth Drivers - The automotive sector saw a significant increase, with product supply growing over 50% year-on-year in the first half of 2024, and the company has delivered products to nearly 100 Tier 1 manufacturers [9] - In the AI sector, the company is expanding its market share in traditional server markets and has achieved large-scale sales in GPU applications [9] - The report highlights catalysts such as the acceleration of AI computing infrastructure and the company's increasing market share [9]