Nexchip Semiconductor Corporation(SH:688249) Huaan Securities·2024-10-29 07:16Investment Rating - The report assigns an investment rating of "Buy" for the company, indicating a positive outlook for future performance [1]. Core Insights - The company is expected to achieve significant revenue growth, with projections of 100.84 billion in 2024, 129.31 billion in 2025, and 151.65 billion in 2026, reflecting a robust growth trajectory [2][3]. - Earnings per share (EPS) are forecasted to increase from 0.30 in 2024 to 0.71 in 2026, suggesting improving profitability [2]. - The report highlights a strong performance in the semiconductor sector, particularly in the 90nm and 55nm technology nodes, which are expected to drive revenue growth [2][3]. Financial Summary - For 2023, the company reported a revenue of 21.09 billion, with an expected increase to 67.75 billion in 2024, representing a growth rate of 35.05% [1]. - The projected operating profit for 2024 is 11.73 billion, with a significant increase to 22.55 billion in 2025 [1]. - The report indicates a return on equity (ROE) of 8% for 2023, with expectations of improvement in subsequent years [5]. Valuation Metrics - The price-to-earnings (P/E) ratio is projected to decrease from 71 in 2024 to 30 in 2026, indicating a potentially undervalued stock as earnings grow [2]. - The enterprise value to EBITDA (EV/EBITDA) ratio is expected to improve, reflecting better operational efficiency and profitability [5].