NCE(SH:605111) KAIYUAN SECURITIES·2024-03-28 16:00Investment Rating - The report maintains a "Buy" rating for the company [16][3][21] Core Views - The company achieved a revenue of 1.477 billion yuan in 2023, a year-on-year decrease of 18.5%, and a net profit of 323 million yuan, down 25.8% year-on-year. However, the fourth quarter of 2023 showed signs of recovery with a revenue of 372 million yuan, a year-on-year decline of 23.1% but a quarter-on-quarter increase of 7.7%, and a net profit of 108 million yuan, up 11.0% year-on-year and 60.9% quarter-on-quarter [2][3][4] - The company has adjusted its product structure in response to the industry's downturn, leading to a noticeable recovery in performance and gross margin. The company is expected to accelerate growth in high-end sectors such as automotive, AI servers, and aircraft [2][4][17] Financial Performance Summary - Revenue (in million yuan): 2022A: 1,811; 2023A: 1,477; 2024E: 2,024; 2025E: 2,584; 2026E: 3,250, with a year-on-year growth of -18.5% in 2023 and projected growth of 37.1% in 2024 [6] - Net profit (in million yuan): 2022A: 435; 2023A: 323; 2024E: 393; 2025E: 481; 2026E: 591, with a year-on-year decline of 25.8% in 2023 and projected growth of 21.7% in 2024 [6] - Gross margin: 2022A: 36.9%; 2023A: 30.8%; 2024E: 30.8%; 2025E: 31.0%; 2026E: 31.1% [6] Product Development and Market Expansion - In the automotive electronics sector, the company has established deep collaborations with Tier 1 manufacturers such as United Electronics and Bertley, successfully integrating with international Tier 1 firms like Harman Kardon and Valeo, which is expected to accelerate growth [4] - In the AI server sector, the company has developed products based on market demand and has achieved bulk sales with leading customers, indicating potential for accelerated growth [4][17] - The company is also expanding its presence in the low-altitude economy by deepening partnerships with clients like DJI and Wolong Electric, showcasing significant growth potential [4]