NCE(605111) 国投证券·2024-03-27 16:00Investment Rating - The report maintains a "Buy-A" investment rating for the company, with a 6-month target price of 45.57 CNY, based on a 35 times PE for 2024 [3][16]. Core Insights - The company has a strong competitive advantage and is expanding in the AI server and data center sectors. It has established significant partnerships with leading manufacturers in various industries, including electric vehicles and AI servers, which are expected to drive future growth [2][14][25]. - The company reported a revenue of 1.48 billion CNY in 2023, a decrease of 18.46% year-on-year, with a net profit of 323.1 million CNY, down 25.75% year-on-year. However, Q4 2023 showed signs of recovery with a revenue increase of 7.51% and a net profit increase of 61.19% compared to the previous quarter [13][25]. Financial Projections - Revenue projections for 2024, 2025, and 2026 are 1.91 billion CNY, 2.32 billion CNY, and 2.83 billion CNY, respectively. Corresponding net profits are expected to be 396 million CNY, 514 million CNY, and 642 million CNY [3][19]. - The company’s earnings per share (EPS) are projected to be 1.30 CNY in 2024, 1.72 CNY in 2025, and 2.15 CNY in 2026 [19]. Market Performance - The company's stock price has shown significant volatility, with a decline of 53% from March 2023 to March 2024, compared to the Shanghai Composite Index [4][25]. - The total market capitalization is approximately 11.45 billion CNY, with a circulating market capitalization of 11.41 billion CNY [16]. Growth Strategy - The company is focusing on optimizing its product structure and expanding into new markets, including electric vehicles, AI servers, and other emerging applications. This strategy aims to enhance its market share and drive future revenue growth [14][25].