Nexchip Semiconductor Corporation(688249) 华金证券·2024-05-09 12:30Investment Rating - The report maintains a "Buy-A" rating for Nexchip (688249 SH) [1] Core Views - Nexchip achieved rapid growth in Q1 2024 with revenue of 2 228 billion yuan up 104 44% YoY and net profit attributable to shareholders of 792 59 million yuan up 123 98% YoY [1] - The growth is attributed to the recovery of the semiconductor industry improved product competitiveness and high capacity utilization [1] - CIS and 55nm process revenue increased significantly with CIS becoming the second major product line [1] - The company is expected to benefit from the recovery of the display panel industry and the mass production of its OLED platform [1] Business Performance - In Q1 2024 Nexchip's revenue breakdown by product was DDIC (71 82%) CIS (13 27%) PMIC (8 69%) Logic (3 48%) and MCU (2 66%) [1] - By process node 55nm accounted for 10 23% of revenue 90nm for 44 69% 110nm for 30 88% and 150nm for 14 21% [1] - The 55nm process saw rapid growth due to mass production and high market demand [1] Future Outlook - Nexchip is expected to achieve revenue of 10 069 billion yuan in 2024 12 890 billion yuan in 2025 and 15 210 billion yuan in 2026 with YoY growth rates of 39 0% 28 0% and 18 0% respectively [3] - Net profit attributable to shareholders is forecasted to be 817 million yuan in 2024 1 213 billion yuan in 2025 and 1 515 billion yuan in 2026 [3] - The company is advancing its OLED platform with 40nm high-voltage OLED display driver chips expected to achieve small-scale mass production in Q2 2024 [1] Industry Context - The display panel industry is expected to recover in 2024 with display panel sales projected to grow by 7% YoY [1] - DDIC demand is expected to rebound to 8 2 billion units a 4% YoY increase [1] - Chinese panel manufacturers like BOE Visionox and Tianma are expanding OLED production which is expected to drive demand for OLED panel driver chips [1]