Shanghai New Vision Microelectronics (SH:688593) SINOLINK SECURITIES·2024-10-18 02:00Investment Rating - The report assigns an "Accumulate" rating to the company for the first time [1]. Core Views - The company has a comprehensive layout in the display driver chip sector and is expected to benefit significantly from the recovery of the display industry [1]. - The shift of panel production capacity to mainland China presents a favorable opportunity for the display supply chain [1]. - The domestic market for display driver chips is poised for substantial growth due to the need for domestic alternatives to foreign manufacturers [1]. Summary by Sections Company Overview - The company specializes in display driver chips, offering both integrated and separated solutions, and has established strong partnerships with major panel manufacturers [1]. - In the first half of 2024, the company achieved revenue of 231 million yuan, reflecting a year-on-year growth of 5.43% [1]. Investment Logic - The global display panel industry is projected to grow from 254 million square meters in 2021 to 274 million square meters by 2024, with mainland China's share expected to reach 43% [1]. - The global display driver chip market is anticipated to reach approximately 11.13 billion USD in 2024, with a year-on-year growth of about 0.8% [1]. - The company currently holds a market share of approximately 1.2% in the domestic display driver chip market, indicating significant room for domestic substitution [1]. Profit Forecast, Valuation, and Rating - The company is projected to achieve net profits of 35 million yuan, 121 million yuan, and 202 million yuan for the years 2024, 2025, and 2026, respectively [1]. - The report anticipates a target price of 21.01 yuan for 2025, based on an 80x valuation, leading to a market capitalization of 9.657 billion yuan [1].