NCE(SH:605111) Guotou Securities·2024-08-14 14:38Investment Rating - The investment rating for the company is "Buy - A" with a six-month target price of 36.1 CNY [6][9]. Core Views - The company reported a revenue of 873 million CNY for the first half of 2024, representing a year-on-year increase of 15.16%. The net profit attributable to shareholders reached 218 million CNY, up 47.45% year-on-year [2]. - The demand from emerging fields and the recovery of downstream markets have led to a continuous increase in product orders, allowing for rapid inventory turnover [3]. - The company has significantly increased its production capacity in response to market changes and customer needs, particularly for its SGT-MOSFET product line, which saw a revenue of 360 million CNY in the first half of 2024, a growth of 40.29% year-on-year [3]. Summary by Sections Financial Performance - In the second quarter of 2024, the company achieved a revenue of 502 million CNY, a quarter-on-quarter increase of 35.01% [2]. - The company expects continued sales growth in its SGT products, driven by the increasing demand for AI computing servers [3]. Market Development - The company has strengthened its collaboration with leading clients in the photovoltaic industry and is actively developing new customer bases in emerging fields such as AI computing and low-altitude economy [4]. - The partnership with BYD in automotive electronics has resulted in over a 50% increase in product supply in the first half of 2024 [4]. Research and Development - The company invested over 40 million CNY in R&D in the first half of 2024, accounting for 4.63% of its revenue, focusing on enhancing its core product competitiveness [5]. - The company has established advanced power module production lines and is positioned as a leading domestic semiconductor power device design company [5]. Future Projections - Revenue projections for 2024 to 2026 are 1.887 billion CNY, 2.346 billion CNY, and 2.920 billion CNY, respectively, with net profits of 454 million CNY, 576 million CNY, and 732 million CNY [9]. - The company maintains a price-to-earnings ratio of 33 times for 2024, supporting its target price of 36.1 CNY [9].