NCE(SH:605111) Southwest Securities·2025-09-03 13:07Investment Rating - The report assigns a "Buy" rating to the company with a target price of 41.54 CNY over the next six months, based on a current price of 33.58 CNY [1][31]. Core Insights - The company is actively expanding into high-growth sectors, achieving steady growth in the first half of 2025, with revenue of 9.3 billion CNY, up 6.4% year-on-year, and a net profit of 2.4 billion CNY, up 8.0% year-on-year [7][14]. - The report highlights a recovery in downstream demand, with a significant improvement in inventory structure and a focus on automotive electronics and AI computing as key growth areas [7][12]. - The company has a strong competitive position in the power semiconductor industry, with a comprehensive product lineup and a focus on R&D investment [12][31]. Financial Performance Summary - Revenue and profit forecasts for the company are as follows: - 2024A: Revenue of 1,828.42 million CNY, net profit of 434.58 million CNY - 2025E: Revenue of 2,238.92 million CNY, net profit of 558.53 million CNY - 2026E: Revenue of 2,571.05 million CNY, net profit of 659.39 million CNY - 2027E: Revenue of 2,952.69 million CNY, net profit of 771.11 million CNY - The compound annual growth rate (CAGR) for net profit is projected to be 21.1% over the next three years [3][26][31]. Product and Market Positioning - The company specializes in power semiconductor products, including SGT-MOSFET, SJ-MOSFET, Trench-MOSFET, and IGBT, with applications across various sectors such as consumer electronics, automotive electronics, and renewable energy [9][10][12]. - The SGT-MOSFET product line is noted for its strong competitive edge and significant sales volume, while the IGBT products are expected to benefit from a recovering photovoltaic storage market [7][12][26]. - The company has introduced nearly 4,000 product variants, making it one of the most comprehensive design firms in the domestic MOSFET category [12][13]. Investment Valuation - The report estimates the company's price-to-earnings (PE) ratio at 31 times for 2025, leading to a target price of 41.54 CNY, reflecting the company's strong growth potential in high-demand sectors [1][31].