Investment Rating - The report initiates coverage on 纳芯微 (688052.SH) with an "Accumulate" rating, setting a target price of 207 CNY, with an upside target of 221 CNY [3][12][68]. Core Insights - The automotive electronics application enhancement and domestic substitution open growth space for the company. The domestic automotive analog chip market is expected to grow at a CAGR of 18% from 2025 to 2029, surpassing consumer electronics by 2029. The current domestic substitution rate is only 5%, indicating a rapid acceleration in the trend. The company's analog chip business is projected to achieve a CAGR of 25% from 2024 to 2027, increasing its market share from 0.9% in 2024 to 1.2% in 2027 [1][9][22]. - The increase in new energy vehicle sales and electrification drives the company's automotive business growth. The penetration rate of electric vehicles in China is nearing 50%, with the value of analog chips per vehicle expected to reach 2200-4000 CNY by 2029. The company's current product coverage per vehicle is 1300 CNY, expected to reach 1500 CNY by year-end. The company is anticipated to benefit from the demand expansion for PMIC and isolation chips driven by high-voltage platform penetration, with its automotive business market share projected to grow from 1.8% in 2024 to 2.8% in 2026 [2][10][35]. - The horizontal acquisition of 麦歌恩 (Maguan) positions the sensor business as a major segment for the company. The increase in single-vehicle usage of magnetic sensors driven by new energy vehicles makes it the fastest-growing segment in the Chinese sensor market. The company is expected to achieve the consolidation of 麦歌恩 by the end of 2024, exceeding its performance commitments for 2024. The sensor business is projected to account for over 30% of total revenue, with the magnetic sensor market share expected to exceed 10% by 2025-2026 [2][11][43]. Financial Data and Valuation - The company is forecasted to achieve revenues of 31.65 billion CNY and 39.25 billion CNY for 2025 and 2026, respectively, with corresponding PS ratios of 8.3x and 6.7x. The target price is based on a 7.5x PS for 2026 [3][4][68]. - The revenue growth rates are projected at 61.4% for 2025 and 24.0% for 2026, with a gross margin expected to improve to 38.2% by 2026 [4][64].

Core Viewpoint - The article discusses the rapid capital operations and integration within the magnetic sensor chip industry in China, highlighting significant milestones and developments over the past 30 years, leading to a shift from fragmented small-scale operations to a more consolidated and strategic industry landscape [2][3]. Industry Development - Over the past 30 years, the magnetic sensor industry in China has evolved from relying entirely on imports to achieving over 30% of the global market share, with domestic chip localization rates exceeding 25% [3][4]. - The industry has seen a transition from small workshop-style development to a phase of deep restructuring supported by capital and strategic initiatives [3][4]. Technological Evolution - Magnetic sensors are categorized into Hall effect sensors and magnetoresistive sensors, with the latter including anisotropic magnetoresistance (AMR), giant magnetoresistance (GMR), and tunnel magnetoresistance (TMR) sensors [6][8]. - The commercialization of magnetic sensors began in the 1970s and 1980s in Western countries, with significant advancements in Hall effect sensors and the eventual emergence of AMR, GMR, and TMR technologies [8][9][10]. Market Dynamics - By the mid-1990s, foreign companies dominated the magnetic sensor core chip market, with major players like AKM, Honeywell, and TI producing various types of Hall chips [10]. - In 1995, there were only 41 domestic companies producing magnetic sensors in China, with a total output of 27.8 million units, significantly lower than Japan's production levels [17][19]. Capital Movements - Recent capital activities include the listing application of Anhui Xici Technology on the Hong Kong Stock Exchange and acquisitions such as the 100% stake in Xingan Semiconductor by Biyimi [3][4]. - The article outlines a series of mergers and acquisitions, indicating a trend towards consolidation in the magnetic sensor industry [3][4]. Key Players and Innovations - Companies like Nanjing Zhongxu Microelectronics and Shanghai Yanhua Electronics have emerged as significant players in the domestic market, focusing on various sensor technologies and applications [24][47]. - The establishment of firms such as Suzhou Naxin Microelectronics and Shanghai Xirui Technology reflects the growing innovation and competitive landscape in the magnetic sensor sector [56][52]. Future Outlook - The magnetic sensor industry is expected to continue its growth trajectory, driven by advancements in technology and increasing applications in sectors like automotive, industrial automation, and consumer electronics [43][44].

Group 1 - The company will hold its 2024 Annual General Meeting on June 20, 2025, at 14:00 in Shanghai [6] - The meeting will include a combination of on-site and online voting methods for shareholders [6] - Shareholders must arrive 30 minutes prior to the meeting for registration and must present necessary identification documents [2][3] Group 2 - The company reported a net loss attributable to shareholders of 52.317 million yuan, an increase in loss of 61.9104 million yuan compared to the previous year [9] - The company’s revenue is recovering as the consumer electronics market gradually rebounds, although profits remain under pressure [8][9] - The board of directors has emphasized the importance of maintaining shareholder rights and orderly conduct during the meeting [4][5] Group 3 - The board of directors has been re-elected, with the third board transitioning smoothly to the fourth board, ensuring continuity in governance [9] - The board held 12 meetings during the reporting period, adhering to legal and regulatory requirements [9][11] - The company plans to enhance its research and development in smart sensor chips and power management chips to strengthen its competitive position [12][13] Group 4 - The company has committed to transparent information disclosure, publishing four regular reports and 111 temporary announcements during the reporting period [13][21] - The independent directors have actively participated in meetings and provided independent opinions on significant matters, ensuring the protection of minority shareholders' interests [12][24] - The company has maintained compliance with all relevant laws and regulations regarding financial reporting and corporate governance [21][24]