NSIG(SH:688126) Tianfeng Securities·2024-09-22 05:30Investment Rating - The investment rating for the company is "Buy" with a maintained rating [1]. Core Views - The company's performance in H1 2024 is under pressure, with a significant decline in net profit and revenue, attributed to a slow recovery in the semiconductor market and ongoing cost pressures [1]. - The company is enhancing its R&D capabilities and accelerating diversification projects, with a notable increase in 300mm silicon wafer production capacity [1]. - Despite the challenges, the company is expected to benefit from the gradual recovery of the semiconductor industry and its strategic capacity expansions [1]. Financial Performance Summary - The company reported a revenue of 1.569 billion yuan in H1 2024, a slight decrease of 0.28% year-on-year [1]. - The net profit attributable to the parent company was -389 million yuan, a significant decline of 307.35% year-on-year [1]. - The non-recurring net profit attributable to the parent company was -429 million yuan, down 1644.69% year-on-year [1]. Capacity Expansion and R&D - The company’s subsidiary, Shanghai Xinsheng, has achieved a monthly production capacity of 500,000 pieces of 300mm silicon wafers, with plans to reach 600,000 pieces per month by the end of 2024 [1]. - R&D investment reached 124 million yuan in H1 2024, an increase of 16.80% year-on-year, accounting for 7.87% of revenue [1]. - The company applied for 41 invention patents and obtained 6 patents in H1 2024, showcasing its strong innovation capabilities [1]. Financial Projections - Revenue projections for 2024E are estimated at 3.870 billion yuan, with a growth rate of 21.32% [2]. - The net profit attributable to the parent company is projected to be 210 million yuan in 2024E, reflecting a growth rate of 12.59% [2]. - The company’s EBITDA for 2024E is expected to be 995.80 million yuan [2]. Market Position and Strategy - The company is positioned as a leading supplier of 300mm silicon wafers in China, with a focus on expanding its market share in high-end applications [1]. - The ongoing projects in both 300mm and 200mm silicon wafer production are aimed at meeting the growing demand in niche markets [1]. - The company is also exploring collaborations in the IGBT/FRD product application market, driven by the growth in electric vehicles and industrial products [1].