NCE(605111) 国信证券·2024-10-31 14:46Investment Rating - The investment rating for the company is "Outperform the Market" [3][9]. Core Views - The company has achieved a quarter-on-quarter increase in gross margin for five consecutive quarters, with a gross margin of 38.04% in Q3 2024, reflecting a year-on-year increase of 7.9 percentage points [1]. - Revenue for Q3 2024 reached 482 million yuan, a year-on-year increase of 39.45%, while net profit attributable to the parent company was 115 million yuan, up 70.27% year-on-year [1]. - The automotive and AI computing sectors are experiencing accelerated growth, with significant deliveries to nearly 100 Tier 1 manufacturers and new customer acquisitions in the automotive sector [1]. - The company is optimistic about the expansion opportunities for its SGT MOS products and the long-term layout of its IC products, despite short-term pressures on the IGBT business due to weak photovoltaic demand [1]. Financial Forecasts - The company is expected to achieve net profits of 462 million yuan, 580 million yuan, and 665 million yuan for the years 2024, 2025, and 2026, respectively, representing year-on-year growth rates of 43%, 26%, and 15% [1][2]. - The projected price-to-earnings ratios (PE) for 2024, 2025, and 2026 are 32, 25, and 22 times, respectively [1][2]. Revenue and Profitability - The company's revenue is forecasted to be 1.846 billion yuan in 2024, with a year-on-year growth of 25%, followed by 2.299 billion yuan in 2025 and 2.695 billion yuan in 2026 [2]. - The net profit for 2024 is projected at 462 million yuan, with a significant increase from 323 million yuan in 2023 [2]. Product and Market Development - The company has successfully delivered automotive-grade products to a growing number of clients, enhancing its market presence in the automotive sector [1]. - The SGT MOS product line is positioned to replace international competitors' products, with ongoing improvements in performance and certification for automotive applications [1].