NCE(SH:605111) Donghai Securities·2026-04-01 08:28Investment Rating - The investment rating for the company is "Buy" (maintained) [1][7] Core Insights - The report highlights a significant improvement in downstream demand, which is expected to restore profitability for the company [1][3] - The company achieved a revenue of 1.877 billion yuan in 2025, representing a year-over-year increase of 2.66%, while the net profit attributable to shareholders was 394 million yuan, a decrease of 9.42% year-over-year [7][8] - The report anticipates that the company's gross margin will improve in 2026 due to rising downstream demand and an increase in the proportion of high-value-added products [7][8] Financial Performance Summary - In 2025, the company reported a comprehensive gross margin of 32.86%, down 3.56 percentage points year-over-year [7] - The fourth quarter of 2025 saw a revenue of 492 million yuan, with a year-over-year increase of 4.01% and a quarter-over-quarter increase of 7.91% [7] - The company expects revenues of 2.424 billion yuan, 2.957 billion yuan, and 3.474 billion yuan for 2026, 2027, and 2028, respectively, with corresponding net profits of 553 million yuan, 703 million yuan, and 862 million yuan [7][8] Market Expansion and Product Development - The company has successfully expanded its overseas market, with its Singapore subsidiary focusing on AI servers and high-end automotive electronics [7] - The overseas revenue grew by 25.94% year-over-year in 2025, indicating strong international demand [7] - The company has introduced products to several new AI computing server clients and is actively working on product solutions for server applications [7]