NSIG(SH:688126)2024-04-28 01:32Investment Rating - The report has downgraded the investment rating to "Outperform" [6][7][8] Core Views - The company's Q1 2024 revenue was CNY 725 million, a year-on-year decrease of 9.74%, with a net profit attributable to shareholders of -CNY 198 million, a significant increase of 288.69% year-on-year. The decline in revenue and rising fixed costs led to a gross margin drop of 7.7% [6][8] - The company is expanding its production capacity for 300mm silicon wafers, with a current capacity of 450,000 pieces per month, expected to reach 600,000 pieces per month by the end of 2024 [6][7] - The report highlights a significant increase in R&D investment, which grew by 25% year-on-year in Q1 2024 [6][8] Financial Data Summary - Total revenue for 2023 was CNY 3,190 million, with a projected increase to CNY 4,042 million in 2024, representing a year-on-year growth rate of 26.7% [8][9] - The net profit forecast for 2024 has been revised down from CNY 4.1 billion to CNY 1.4 billion, with projections for 2025 and 2026 at CNY 2.7 billion and CNY 4.3 billion respectively [6][8] - The gross margin is expected to recover to 12.5% in 2024, improving to 19.2% by 2026 [8][9]