NCE(SH:605111) Guohai Securities·2024-03-31 16:00Investment Rating - The report maintains a "Buy" rating for the company [5][20]. Core Views - The company is a leading player in the domestic power semiconductor industry, actively expanding its customer base in the automotive and AI server sectors despite a weak demand in the photovoltaic storage market [5][21]. - The company's revenue for 2023 was 1.477 billion yuan, a decrease of 18.46% year-on-year, while the net profit attributable to the parent company was 323 million yuan, down 25.75% year-on-year [20][21]. - The gross margin has shown improvement since Q2 2023, reaching 31.77% in Q4 2023, indicating successful market penetration and product advantages [22][21]. Financial Forecast - The company expects revenue growth rates of 23%, 29%, and 23% for 2024, 2025, and 2026, respectively, with projected revenues of 1.814 billion, 2.340 billion, and 2.875 billion yuan [6][5]. - The net profit attributable to the parent company is forecasted to be 405 million, 512 million, and 706 million yuan for 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 28, 22, and 16 [5][6]. - The company’s return on equity (ROE) is expected to improve from 9% in 2023 to 13% by 2026 [6][9]. Market Position and Strategy - The company has increased its focus on automotive electronics, with its share in this sector rising from 12% in H1 2023 to 15% by the end of the year, driven by partnerships with major clients like BYD [22][21]. - In the AI server market, the company has successfully achieved bulk sales of its SGT-MOS products to leading clients, indicating strong growth potential in this area [22][21]. - The company is also expanding its product lines and enhancing its competitive edge by developing high-current IGBT modules and deepening collaborations with top-tier clients in various sectors [22][21].