NCE(SH:605111) Great Wall Securities·2024-04-07 16:00Investment Rating - The report assigns a "Buy" rating to the company, expecting the stock price to outperform the industry index by over 15% in the next six months [13]. Core Insights - The company is expected to benefit from the high demand in the AI server market, with a projected global market size of $166.6 billion by 2030 and a CAGR of approximately 17.45% from 2024 to 2030 [3]. - The company has developed products focused on AI computing servers and has established partnerships with major players like Great Wall and Inspur, leading to significant sales in the AI computing sector [3]. - Despite a challenging performance in 2023, the company anticipates a recovery in the photovoltaic market in 2024, which is expected to boost sales of IGBT products [16]. - The company has made significant inroads in the automotive electronics market, with its MOSFET products being adopted by numerous leading automotive manufacturers, indicating a strong growth trajectory in this segment [19]. Financial Summary - In 2023, the company reported revenues of 1.477 billion yuan, a decline of 18.46% year-on-year, and a net profit of 323 million yuan, down 25.75% year-on-year [5]. - The company's gross margin for 2023 was 30.75%, a decrease of 6.18 percentage points compared to the previous year, primarily due to increased manufacturing costs [16]. - The company expects revenues to rebound to 1.967 billion yuan in 2024, with a projected growth rate of 33.2% [15]. - The forecasted net profits for 2024, 2025, and 2026 are 392 million yuan, 492 million yuan, and 623 million yuan, respectively, with EPS expected to rise from 1.31 yuan in 2024 to 2.09 yuan in 2026 [20].