NCE(SH:605111) Huachuang Securities·2024-04-30 07:32Investment Rating - The report maintains a "Strong Buy" rating for the company [1][3]. Core Views - The company has shown significant recovery in profitability, with new products and fields continuously expanding. The target price is set at 50.7 CNY, while the current price is 38.06 CNY [3][4]. - The company reported a revenue of 372 million CNY in Q1 2024, with a year-on-year growth of 54.06% in net profit attributable to shareholders [3][4]. Financial Performance Summary - Total revenue (million CNY) is projected to grow from 1,477 in 2023 to 1,830 in 2024, with a year-on-year growth rate of 24.0% [2]. - Net profit attributable to shareholders (million CNY) is expected to increase from 323 in 2023 to 432 in 2024, reflecting a year-on-year growth of 33.6% [2]. - Earnings per share (CNY) are forecasted to rise from 1.08 in 2023 to 1.45 in 2024, with a price-to-earnings ratio of 26 [2]. Business Development Insights - The company is actively adjusting its product structure and market strategy, focusing on cost optimization to enhance overall profitability. The gross margin improved to 34.76% in Q1 2024 [3][4]. - The company has launched 200 automotive-grade MOSFET products and is collaborating with leading domestic Tier 1 suppliers, indicating a strong foothold in the automotive electronics market [4]. - In the AI server market, the company has developed products to meet the demand for AI computing servers, achieving bulk sales with leading clients [4]. Future Growth Potential - The company is expected to return to a growth trajectory as downstream demand recovers and new products gain traction. The forecast for net profit attributable to shareholders for 2024-2026 has been revised upwards to 4.32 billion CNY, 5.33 billion CNY, and 6.60 billion CNY respectively [3][4]. - The product structure is shifting from MOSFETs to IGBTs and third-generation semiconductors, targeting growth in the new energy vehicle, photovoltaic energy storage, and AI server sectors [4].