NCE(SH:605111) Ping An Securities·2024-10-29 14:56Investment Rating - The report maintains a "Recommended" rating for the company [2][8] Core Views - The demand in emerging application areas has significantly increased, leading to a continuous improvement in the company's gross margin. For the first three quarters of 2024, the company achieved revenue of 1.356 billion yuan, a year-on-year increase of 22.77%, and a net profit attributable to shareholders of 332 million yuan, up 54.59% year-on-year [4][5] - The company has effectively responded to changes in customer demand, increasing production to meet new market needs, which has driven steady growth in performance [5] - The company is actively optimizing its product, market, and customer structures to expand its influence in the mid-to-high-end market, particularly in new application areas such as electric vehicles, photovoltaic energy storage, AI servers, and drones [6][7] Financial Performance Summary - For Q3 2024, the company reported revenue of 482 million yuan, a year-on-year increase of 39.45%, and a net profit of 115 million yuan, up 70.27% year-on-year. The gross margin for Q3 was 38.04%, an increase of 7.91 percentage points year-on-year [5] - The company’s operating expenses ratio for the first three quarters of 2024 was 6.44%, a decrease of 1.49 percentage points year-on-year, with specific reductions in sales, management, and R&D expense ratios [5] - The company plans to maintain its profit expectations, forecasting net profits of 456 million yuan, 589 million yuan, and 698 million yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 1.10 yuan, 1.42 yuan, and 1.68 yuan [8][11] Market Position and Strategy - The company is a leading domestic power device design enterprise, focusing on the research, design, and sales of power devices such as MOSFETs and IGBTs. It has a comprehensive layout in high-end power devices with over 3,000 product models covering a wide voltage and current range [8] - The company has established a direct supply relationship with BYD, enhancing its collaboration and expanding the range of automotive electronic products offered [7][8] - The company aims to achieve breakthroughs in high-end customer segments and emerging application fields, furthering its goal of replacing imports in the mid-to-high-end MOSFET product market [8]