NCE(SH:605111) EBSCN·2024-05-22 05:02Investment Rating - The report maintains a "Buy" rating for the company, with a current price of 37.69 CNY [15][16]. Core Views - The company is a leading domestic power semiconductor enterprise, focusing on the research, design, and sales of MOSFETs, IGBTs, and other power devices. It has established four major product technology platforms and is actively expanding its product matrix in automotive electronics and photovoltaic sectors, while also entering the AI server application market [15][16]. - The company achieved a main business revenue of 1.477 billion CNY in 2023, a decrease of 18.46% year-on-year, and a net profit attributable to the parent company of 323 million CNY, down 25.75% year-on-year. However, it is expected to recover with a projected revenue of 1.905 billion CNY in 2024, representing a growth rate of 29% [3][15][16]. Financial Performance and Forecast - Revenue and profit forecasts for the company have been adjusted downwards due to weak recovery in the downstream power semiconductor industry. The net profit estimates for 2024 and 2025 are revised to 405 million CNY and 524 million CNY, respectively, with a new estimate for 2026 at 651 million CNY [16]. - The company’s earnings per share (EPS) are projected to be 1.36 CNY in 2024, 1.76 CNY in 2025, and 2.18 CNY in 2026, with a corresponding price-to-earnings (P/E) ratio of 28, 21, and 17 [3][16]. Industry Positioning - The company is deepening its involvement in the automotive electronics sector, having launched over 200 automotive-grade MOSFET products. It has established direct supply relationships with major clients like BYD and is expanding its sales scale significantly [15][16]. - In the photovoltaic sector, demand is expected to gradually recover in 2024, which will support the company's performance. The company is also focusing on developing new products in the AI server field, responding to the growing market demand for AI computing power [15][16].