NCE(605111)2024-11-01 10:30Investment Rating - The report maintains a "Buy-A" rating for the company [2][4]. Core Views - The company has shown steady growth in performance, with a year-on-year revenue increase of 22.77% for the first three quarters of 2024, reaching 1.356 billion yuan, and a net profit increase of 54.59%, totaling 332 million yuan [2][3]. - The third quarter of 2024 saw a revenue of 482 million yuan, reflecting a year-on-year growth of 39.45% but a slight quarter-on-quarter decline of 3.91% due to weakened demand from downstream customers in the light storage sector [3][4]. - The gross margin for the first three quarters of 2024 was 36.58%, an increase of 6.17 percentage points year-on-year, while the net profit margin was 24.32%, up 5.14 percentage points year-on-year [3][4]. Financial Performance - The company forecasts revenues of 1.871 billion yuan, 2.346 billion yuan, and 2.864 billion yuan for 2024, 2025, and 2026 respectively, with net profits projected at 452 million yuan, 570 million yuan, and 716 million yuan for the same years [4][7]. - The estimated P/E ratios for 2024, 2025, and 2026 are 31.3, 24.8, and 19.8 respectively, indicating a favorable valuation trend [4][7]. - The company has a projected EPS of 1.09 yuan for 2024, increasing to 1.72 yuan by 2026 [7][8]. Market Dynamics - The company is capitalizing on emerging market demands, particularly in AI computing and communication sectors, while also expanding its customer base in traditional industries such as automotive [4][3]. - The company has successfully integrated products into the AI computing server market, positioning itself to benefit from long-term growth in AI-related demands [4][3].