NCE(605111)2024-11-01 13:33Investment Rating - The investment rating for the company is "Buy" [10] Core Views - The company reported a significant year-on-year improvement in performance, with Q3 2024 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 [2][6] - The improvement in performance is attributed to the gradual recovery of the downstream market since the 2024 Spring Festival, increased demand in emerging application areas, accelerated inventory digestion, and continuous improvement in sales [6] - The company is actively expanding into new fields such as AI computing servers and low-altitude economy, with products already applied in key components for drones and achieving large-scale sales [6] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved revenue of 1.356 billion yuan, a year-on-year growth of 22.77%, and a net profit of 332 million yuan, up 54.59% year-on-year [6] - Q3 2024 gross margin was 38.04%, an increase of 7.91 percentage points year-on-year, while net margin was 23.59%, up 4.37 percentage points year-on-year [2][6] Future Projections - Revenue projections for 2024-2026 are 1.845 billion yuan, 2.289 billion yuan, and 2.796 billion yuan, with year-on-year growth rates of 24.97%, 24.03%, and 22.17% respectively [6][7] - Net profit projections for the same period are 457 million yuan, 564 million yuan, and 696 million yuan, with growth rates of 41.36%, 23.49%, and 23.43% respectively [6][7] Valuation Metrics - The company’s earnings per share (EPS) for 2024-2026 are projected to be 1.10 yuan, 1.36 yuan, and 1.68 yuan, with corresponding price-to-earnings (P/E) ratios of 33, 26, and 21 [7] - The current market capitalization is approximately 14.9 billion yuan, with a current price of 35.88 yuan per share [4]