NCE(605111) 国金证券·2024-10-30 07:00Investment Rating - The report maintains a "Buy" rating for the company, with a current stock price corresponding to PE valuations of 34x, 27x, and 22x for 2024, 2025, and 2026, respectively [1][7] Core Views - The company's 3Q24 revenue and net profit showed strong year-on-year growth, with total revenue reaching 1.356 billion yuan (+22.77% YoY) and net profit attributable to shareholders reaching 332 million yuan (+54.59% YoY) [1] - The company's profitability has been improving, with a gross margin of 38.04% in 3Q24, up 1.51 percentage points quarter-on-quarter, marking the fifth consecutive quarter of margin expansion [1] - Downstream market demand is recovering, and inventory turnover days decreased to 121.61 days in 3Q24, indicating improved sales performance [1] - The company is expected to achieve higher growth in automotive electronics and AI computing power through product platform upgrades and new product development [1] Financial Performance Summary Revenue and Profit - 1-3Q24 revenue: 1.356 billion yuan (+22.77% YoY) [1] - 1-3Q24 net profit attributable to shareholders: 332 million yuan (+54.59% YoY) [1] - 3Q24 revenue: 482 million yuan (+39.45% YoY, -3.91% QoQ) [1] - 3Q24 net profit attributable to shareholders: 70.27% YoY growth [1] Profitability - Gross margin in 3Q24: 38.04% (+1.51 ppts QoQ) [1] - Operating expenses: Sales and management expenses decreased by 19.27% and 20.55% YoY, respectively, while R&D expenses slightly decreased by 4.66% YoY [1] Forecast - Forecasted net profit for 2024-2026: 454 million yuan, 559 million yuan, and 692 million yuan, representing YoY growth of 41%, 23%, and 24%, respectively [1] - EPS for 2024-2026: 1.09 yuan, 1.35 yuan, and 1.67 yuan [1] Market and Industry Analysis - The company has successfully accelerated inventory digestion, with inventory turnover days decreasing to 121.61 days in 3Q24 [1] - Emerging application areas, such as automotive electronics and AI computing power, are expected to drive future growth [1] - The company has maintained a differentiated strategy, focusing on mid-to-high-end markets, which has contributed to its strong performance [1]