NCE(SH:605111) KAIYUAN SECURITIES·2024-08-15 02:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1][2] Core Views - The company has shown significant recovery in H1 2024, with revenue of 873 million yuan, a year-on-year increase of 15.16%, and a net profit of 218 million yuan, up 47.45% year-on-year. The gross margin improved to 35.78%, an increase of 5.24 percentage points year-on-year [2] - The growth is driven by the recovery in downstream demand, particularly in the automotive and AI server sectors, which are expected to accelerate in H2 2024 [2][3] Financial Performance Summary - For H1 2024, the company achieved a revenue of 873 million yuan, with a net profit of 218 million yuan and a gross margin of 35.78% [2] - In Q2 2024, the company reported a revenue of 502 million yuan, a year-on-year increase of 30.40%, and a net profit of 118 million yuan, up 42.25% year-on-year [2] - The company has revised its profit forecasts for 2024, 2025, and 2026 to 459 million yuan, 589 million yuan, and 752 million yuan respectively, with corresponding EPS of 1.11 yuan, 1.42 yuan, and 1.81 yuan [2][5] Product Contribution and Market Segmentation - In H1 2024, the SGT-MOSFET product line generated 360 million yuan in revenue, accounting for 41.44% of total revenue, with a year-on-year growth of 40.29% [3] - The SJ-MOSFET and Trench-MOSFET segments also contributed significantly, with revenues of 102 million yuan and 255 million yuan respectively [3] - The automotive electronics sector has seen a substantial increase in product supply, particularly with BYD, which has increased product offerings by over 50% [4] Future Outlook - The company anticipates continued revenue growth in H2 2024, particularly from the AI server applications and new product launches in the photovoltaic storage sector [3][4] - The overall market segments contributing to revenue include industrial automation, consumer electronics, photovoltaic storage, automotive electronics, AI computing, and communication, with respective revenue shares of 42%, 18%, 14%, 13%, 9%, and 4% in H1 2024 [4]