NCE(605111)2025-05-01 06:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future investment returns [3][5]. Core Views - The company reported a robust performance in 2024, achieving a revenue of 1.828 billion yuan, a year-on-year increase of 23.83%, and a net profit attributable to shareholders of 435 million yuan, up 34.50% [1]. - In Q1 2025, the company continued its growth trajectory with a revenue of 449 million yuan, reflecting a 20.81% year-on-year increase, and a net profit of 108 million yuan, which is an 8.20% increase compared to the previous year [1]. - The growth in 2024 is attributed to a gradual recovery in the industry, driven by increased demand in downstream sectors, particularly in power semiconductors, and a shift towards domestic sourcing by clients [2]. - The company has effectively responded to market changes by expanding its customer base and optimizing its product structure, leading to increased sales in high-end markets such as electric vehicles, AI servers, and renewable energy [2]. Summary by Sections Financial Performance - The company forecasts net profits of 524 million yuan for 2025 and 651 million yuan for 2026, with a new projection of 791 million yuan for 2027 [3]. - Revenue is expected to grow from 2.322 billion yuan in 2025 to 3.370 billion yuan by 2027, with corresponding profit growth rates of 20.49% and 21.59% [4][8]. Profitability and Valuation - The report highlights an improvement in profitability metrics, with a projected gross margin of 33.5% in 2025 and a net profit margin of 22.5% [10]. - The company's P/E ratio is projected to decrease from 24 in 2025 to 16 by 2027, indicating a potentially attractive valuation as earnings grow [11]. Market Position and Strategy - The company is positioned as a leading supplier of power devices in China, with a focus on expanding its influence in high-end applications [3][2]. - The report emphasizes the importance of adapting to market demands and enhancing product offerings to maintain competitive advantages amid increasing competition in the semiconductor industry [2].