Nexchip Semiconductor Corporation(SH:688249) Huachuang Securities·2024-04-30 07:32Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 19.4 CNY, compared to the current price of 14.84 CNY [2][3]. Core Views - The company's Q1 2024 performance shows significant improvement with a revenue of 2.228 billion CNY, representing a year-on-year increase of 104.44% and a slight quarter-on-quarter increase of 0.06%. The gross margin is 24.99%, up 16.96 percentage points year-on-year, while the net profit attributable to shareholders is 79 million CNY, marking a turnaround from losses [2][3]. - The company benefits from the recovery in the semiconductor industry and the shift of the panel supply chain to mainland China, which is expected to enhance its operational performance [3]. - The company is expanding its product offerings and improving its technological capabilities, with significant advancements in high-end processes and multiple platforms, which are anticipated to drive future revenue growth [3]. Financial Summary - For 2024, the company is projected to achieve total revenue of 10.054 billion CNY, a year-on-year growth of 38.8%. The net profit attributable to shareholders is forecasted to be 800 million CNY, reflecting a substantial increase of 277.9% [4]. - The earnings per share (EPS) for 2024 is estimated at 0.40 CNY, with a price-to-earnings (P/E) ratio of 35 [4]. - The company’s total assets are expected to grow from 48.156 billion CNY in 2023 to 49.915 billion CNY in 2024, indicating a healthy balance sheet [10].