NCE(SH:605111) Great Wall Securities·2024-08-16 04:38Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [11]. Core Insights - The company has shown a significant year-on-year revenue growth of 15.16% in H1 2024, with a net profit increase of 47.45% [1]. - The gross margin for H1 2024 improved to 35.78%, up by 5.24 percentage points year-on-year, reflecting successful adjustments in product and market strategies [2]. - The AI server market is projected to grow significantly, with the company benefiting from increased demand for AI-related products, leading to substantial sales growth in this segment [2]. Financial Performance Summary - Revenue: The company reported revenues of 1,477 million in 2023, with projections of 1,840 million in 2024, reflecting a growth rate of 24.6% [1]. - Net Profit: The net profit for 2023 was 323 million, with an expected increase to 468 million in 2024, indicating a growth rate of 44.9% [1]. - EPS: The earnings per share (EPS) are projected to rise from 0.78 in 2023 to 1.13 in 2024 [1][7]. - ROE: The return on equity (ROE) is expected to improve from 8.5% in 2023 to 11.3% in 2024 [1][7]. Market and Product Development - The company is actively expanding its presence in the photovoltaic storage market, anticipating a recovery in demand, which will further enhance sales of its IGBT products [4]. - The company has successfully introduced its automotive-grade products to major international and domestic manufacturers, significantly increasing its market share in the automotive electronics sector [4]. - The AI server product line has achieved mass production, with strong sales to leading clients, positioning the company favorably in the rapidly growing AI market [2][4].