NCE(SH:605111) Ping An Securities·2024-03-28 16:00Investment Rating - The report maintains a "Recommend" rating for the company [4][21]. Core Views - The company has optimized its product, market, and customer structure, focusing on emerging application areas [4][11]. - Despite a challenging market environment leading to a decline in revenue and profit in 2023, there are signs of recovery in Q4 [10][21]. - The company is actively developing new products and expanding its presence in high-end markets, particularly in automotive electronics and AI servers [13][21]. Financial Performance Summary - In 2023, the company achieved revenue of 1.477 billion yuan, a decrease of 18.46% year-on-year, and a net profit of 323 million yuan, down 25.75% year-on-year [7][10]. - The overall gross margin and net margin for 2023 were 30.75% (down 6.18 percentage points YoY) and 21.52% (down 2.48 percentage points YoY), respectively [10]. - Q4 2023 showed a revenue of 372 million yuan (down 23.05% YoY, up 7.67% QoQ) and a net profit of 108 million yuan (up 11.03% YoY, up 60.86% QoQ) [10]. Product and Market Development - The company has launched 200 automotive-grade MOSFET products and has established direct supply relationships with major clients like BYD [13]. - In the photovoltaic storage sector, the company is maintaining close cooperation with leading clients while developing new products [13]. - The company has developed a series of SiC MOSFET products and is in the early stages of sales for these new products [13]. Future Projections - The company expects revenue to recover to 1.826 billion yuan in 2024, with a projected net profit of 381 million yuan [11][21]. - The gross margin is anticipated to improve to 32.6% in 2024, with net margin at 20.9% [11][21]. - The company aims to further expand its market share in high-end applications and achieve breakthroughs in automotive electronics and AI servers [21].