Nexchip Semiconductor Corporation(688249) 长城证券·2024-06-11 08:31Investment Rating - The report maintains a rating of "Accumulate" for the company [3][7]. Core Views - The company has experienced a significant recovery in Q1 2024, with a year-on-year revenue increase of 104.44% and a return to profitability [4][7]. - The demand for DDIC (Display Driver IC) has shown a clear recovery, and the company is expanding its advanced process capabilities [2][4]. - The company is actively developing silicon-based OLED technology to tap into the growing AR/VR market, which is expected to grow at an annual rate of approximately 54% from 2020 to 2024 [6][7]. Financial Performance Summary - In 2023, the company reported a revenue of 7,244 million yuan, a decrease of 27.93% year-on-year, and a net profit of 212 million yuan, down 93.05% year-on-year [3][4]. - For Q1 2024, the company achieved a revenue of 2,228 million yuan, marking a year-on-year increase of 104.44% [4][7]. - The gross margin for 2023 was 21.61%, down 24.55 percentage points year-on-year, while the net margin was 1.65%, down 29.75 percentage points year-on-year [4][7]. - The company expects net profits to recover significantly in the coming years, with projections of 784 million yuan in 2024, 1,191 million yuan in 2025, and 1,476 million yuan in 2026 [7]. Product Development and Market Position - The company has successfully achieved mass production of its 55nm TDDI products and is on track for small-scale production of its 40nm high-voltage OLED platform in Q2 2024 [4][7]. - The product mix has been optimized, with the 55nm process node accounting for 7.85% of revenue in 2023, reflecting a strong market demand [4][6]. - The company is also focusing on automotive chip markets, having established a chip alliance with over 30 member units, including automotive manufacturers and design firms [6][7].