NCE(SH:605111) Guoxin Securities·2024-08-15 05:38Investment Rating - The investment rating for the company is "Outperform the Market" [3][13]. Core Views - The company has shown continuous improvement in gross margin for four consecutive quarters, with revenue, gross margin, and net profit all increasing in Q2 2024. Revenue reached 500 million yuan, a year-on-year increase of 30.4% and a quarter-on-quarter increase of 35%. Net profit attributable to the parent company was 118 million yuan, up 42.25% year-on-year and 17.5% quarter-on-quarter, with a gross margin of 36.53%, reflecting a year-on-year increase of 6.85 percentage points and a quarter-on-quarter increase of 1.77 percentage points [1][2]. Summary by Sections Revenue and Profitability - In the first half of 2024, the company's revenue from industrial control accounted for 42%, AI computing and communication accounted for 9%, optical storage accounted for 17%, automotive electronics accounted for 13%, and photovoltaic storage accounted for 14%. The automotive electronics segment saw a growth of over 50% in product quantity year-on-year [1]. - The revenue from Trench MOS was 255 million yuan (YoY +19.64%), SGT MOS was 360 million yuan (YoY +40.29%), SJ MOS was 102 million yuan (YoY +8.49%), and IGBT was 141 million yuan (YoY -22.64%) [1]. Product Development and Market Expansion - The company is expanding its product offerings in automotive and AI computing sectors, with significant sales in GPU applications to leading overseas clients. The demand for photovoltaic products is also increasing due to unstable power supply factors in regions like Africa [1]. - The company has made advancements in its fourth-generation SJ MOS platform, with ongoing development of SiC and GaN products. The SGT MOS series has completed automotive certification for applications in AI computing and hybrid electric vehicles [1]. Financial Forecast - The company is expected to achieve net profits of 496 million yuan, 584 million yuan, and 667 million yuan for 2024, 2025, and 2026 respectively, reflecting year-on-year growth rates of 54%, 18%, and 14%. The corresponding price-to-earnings ratios for these years are projected to be 27, 23, and 20 times [1][2].