NCE(SH:605111) China Post Securities·2024-03-28 16:00Investment Rating - The report maintains a "Buy" rating for the company [11][12]. Core Views - The company reported a revenue of 1.48 billion yuan for 2023, a year-on-year decrease of 18.46%, and a net profit attributable to shareholders of 320 million yuan, down 25.75% year-on-year. In Q4 alone, revenue was 370 million yuan, up 7.5% quarter-on-quarter, with a net profit of 110 million yuan, up 60.6% quarter-on-quarter [1][12]. - The gross margin for the entire year was 30.75%, a decrease of 6.18% year-on-year, while Q4 gross margin improved to 31.77%, an increase of 1.64% quarter-on-quarter. The report anticipates that gross margins will continue to rise in 2024 due to the pass-through of upstream wafer price reductions and product mix adjustments [1][12]. - The company is actively upgrading its product platform and making progress in emerging fields such as AI servers. In 2023, the revenue contribution from AI servers, communications, and robotics was 8%, automotive electronics 15%, photovoltaic energy storage 17%, industrial automation 35%, and consumer and smart transportation 25% [1][12]. Financial Forecasts - The company is expected to achieve net profits of 410 million yuan, 530 million yuan, and 650 million yuan for the years 2024, 2025, and 2026, respectively [1][12]. - Revenue projections for 2024, 2025, and 2026 are 1.949 billion yuan, 2.608 billion yuan, and 3.317 billion yuan, reflecting growth rates of 32.02%, 33.80%, and 27.19% respectively [12][23].