Southchip Semiconductor Technology(Shanghai) (688484) 华鑫证券·2024-09-05 10:12Investment Rating - The report upgrades the investment rating for the company to "Buy" [1][3]. Core Insights - The company, Nanxin Technology (688484.SH), reported a significant revenue increase of 89.28% year-on-year, reaching 1.25 billion yuan in the first half of 2024, with a net profit of 205 million yuan, up 103.86% year-on-year [1]. - The semiconductor industry is showing signs of recovery, with the company's rapid growth in power management chips for smartphones contributing to its strong performance [1][2]. - The company is actively expanding its product offerings in automotive electronics, having entered multiple well-known automotive Tier 1 and OEM manufacturers [2]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved a revenue of 1.25 billion yuan, a year-on-year increase of 89.28%, and a net profit of 205 million yuan, up 103.86% [1]. - The company’s sales, management, and R&D expenses increased by 63.20% year-on-year, with sales expenses rising by 23.50% due to business expansion [1]. Product Development - The company leads in wired charging chips for mobile devices, with a revenue contribution of approximately 76.05% from this segment [1]. - New products include a car USB charging chip and various automotive chips designed for power supply systems, which have entered the market successfully [2]. Future Projections - Revenue forecasts for 2024, 2025, and 2026 are 2.55 billion yuan, 3.15 billion yuan, and 3.95 billion yuan, respectively, with corresponding EPS of 1.09 yuan, 1.26 yuan, and 1.58 yuan [3]. - The company is expected to maintain a strong growth trajectory, with a projected revenue growth rate of 43.1% in 2024 [5].