Nexchip Semiconductor Corporation(SH:688249) China Post Securities·2024-11-10 02:59Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company has shown significant improvement in financial performance, with a 35% year-on-year increase in revenue for the first three quarters of 2024, reaching 6.775 billion yuan, and a net profit of 296 million yuan, marking a substantial recovery from previous losses [4][6] - The company's gross margin has improved to 25.26%, an increase of 6.6 percentage points year-on-year, driven by rising industry demand and increased sales volume [4] - The company has been operating at full capacity since March 2024, which has positively impacted revenue and profit margins [4] Financial Performance Summary - For Q3 2024, the company reported revenue of 2.377 billion yuan, a year-on-year increase of 16.12% and a quarter-on-quarter increase of 9.56% [4] - The net profit attributable to the parent company for Q3 2024 was 92 million yuan, up 21.60% year-on-year, although it decreased by 14.68% quarter-on-quarter [4] - The company plans to expand its production capacity by 30,000 to 50,000 pieces per month, focusing on mid-to-high-end CIS products, with production expected to ramp up in the first half of 2025 for 28nm OLED driver chips [5][6] Future Projections - Revenue projections for 2024, 2025, and 2026 are 9.406 billion yuan, 12.476 billion yuan, and 14.980 billion yuan, respectively, with corresponding net profits of 456 million yuan, 1.004 billion yuan, and 1.497 billion yuan [6][7] - The company is expected to maintain a price-to-book ratio (P/B) of 1.95, 1.86, and 1.75 for the years 2024, 2025, and 2026, respectively [6][7]