NCE(605111)2025-01-17 02:53Investment Rating - The report assigns a "Buy" rating with a target price of Rmb 43.20 based on a 30x P/E ratio for 2025 [5][6]. Core Insights - The demand in 2025 is expected to be primarily driven by automotive and server applications, with the company optimistic about growth in these sectors [2][3]. - The company has seen a significant increase in domestic automotive clients' demand for localization, expanding its product offerings into power and safety-related domains [3]. - The competitive landscape for MOS products is improving, with the company focusing on high-end applications and entering high-barrier clients to enhance profitability [4]. Summary by Sections Demand Outlook - The company anticipates strong growth in automotive electronics and data center sectors, benefiting from collaborations with major server manufacturers [2]. - Other sectors such as industrial control and renewable energy are also expected to maintain good growth, while consumer electronics demand is projected to remain stable [2]. Automotive Electronics Growth - The company has expanded its product range into automotive applications, with a rapid increase in automotive-grade components, currently around 200 types [3]. - The revenue from automotive applications is expected to increase, currently accounting for approximately 15% of total revenue [3]. Competitive Landscape - MOS products constitute over 80% of the company's revenue, with mid-to-low voltage MOS accounting for about 70% [4]. - The competitive environment is stabilizing due to industry consolidation, and the company is focusing on less competitive areas like solar storage applications [4]. Financial Projections - Revenue is projected to grow from Rmb 1.477 billion in 2023 to Rmb 2.268 billion in 2025, with net profit expected to rise from Rmb 304 million to Rmb 589 million in the same period [8]. - The company’s earnings per share (EPS) is forecasted to increase from Rmb 0.76 in 2023 to Rmb 1.42 in 2025 [8].