Nexchip Semiconductor Corporation(SH:688249) Huachuang Securities·2024-02-23 16:00Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 19.2 CNY, compared to the current price of 15.08 CNY [1][3]. Core Views - The company's operational capacity is gradually improving, leading to a significant recovery in profitability. The industry is experiencing a gradual recovery, and the company's new technologies and products are contributing to growth. The production capacity utilization rate has reached over 90% by the end of 2023, enhancing profitability [2][3]. - For 2023, the company reported a revenue of 7.244 billion CNY, a year-on-year decrease of 27.93%, and a net profit attributable to shareholders of 210 million CNY, down 93.10% year-on-year. For Q1 2024, the company expects revenue between 20.7 billion CNY and 23.0 billion CNY, representing a year-on-year increase of 89.95% to 111.05% [2][3]. - The company is positioned to benefit from the ongoing recovery in the DDIC industry and is making strides in domestic substitution in niche markets. The expected revenue for Q1 2024 is projected at 21.85 billion CNY, with a gross margin of 25.5% [3][4]. Financial Summary - The company achieved a revenue of 10.051 billion CNY in 2022, with a growth rate of 85.1%. The forecast for 2023 is 7.244 billion CNY, reflecting a decline of 27.9%. Projections for 2024 and 2025 are 10.053 billion CNY and 13.862 billion CNY, respectively, with expected growth rates of 38.8% and 37.9% [4][8]. - The net profit attributable to shareholders for 2022 was 3.045 billion CNY, with a growth rate of 76.2%. The forecast for 2023 is 210 million CNY, a decrease of 93.1%. The projections for 2024 and 2025 are 1 billion CNY and 1.768 billion CNY, with growth rates of 376.2% and 76.8% [4][8]. - The company’s earnings per share (EPS) are projected to be 0.10 CNY for 2023, 0.50 CNY for 2024, and 0.88 CNY for 2025 [4][8].