CHIPPACKING(SH:688216) GOLDEN SUN SECURITIES·2024-09-05 00:07Investment Rating - The report initiates coverage with a "Buy" rating for the company [3]. Core Views - The company has been focused on integrated circuit packaging and testing for nearly 20 years, becoming one of the largest local integrated circuit packaging and testing enterprises in South China. The company has over 300 types of packaging forms and has seen a recovery in performance as the downstream market improves [1][23]. - The company’s revenue for the first half of 2024 reached 313 million yuan, a year-on-year increase of 26.61%, while the net profit attributable to shareholders was -41 million yuan, a year-on-year increase of 41.53%, indicating a turning point in performance [1]. - The company has seen a reversal in performance driven by increased shipment volumes, with a year-on-year sales growth of 26.69% in the first half of 2024, despite a decline in product prices due to poor industry demand in 2023 [1][2]. Summary by Sections Company Overview - The company was established on November 7, 2006, and has specialized in packaging and testing for integrated circuits since its inception. It has developed a strong quality management system and technological innovation capabilities [1][23]. Financial Performance - The company’s revenue for 2022 was 540 million yuan, with a year-on-year decline of 33.2%. In 2023, revenue slightly increased to 554 million yuan, with a growth rate of 2.6%. Projections for 2024 estimate revenue to reach 721 million yuan, reflecting a growth rate of 30.1% [5]. - The net profit attributable to shareholders is projected to improve significantly from -131 million yuan in 2023 to -64 million yuan in 2024, with expected growth rates of 51.5% in 2024, 131.6% in 2025, and 126.9% in 2026 [4][5]. Market Position and Trends - The advanced packaging segment accounted for 32.49% of the company’s main business revenue in 2023, an increase of 3.66% compared to 2022. The company is expanding its capabilities in wafer testing and power device packaging, which are expected to drive future growth [2][19]. - The global semiconductor market is projected to grow, with the packaging and testing market expected to reach approximately 822 billion yuan in 2023, driven by advancements in technology and increasing demand in sectors such as automotive electronics and artificial intelligence [19][20].