新品推出，成本优化，助力2024H1 业绩环比改善。根据新相微2024 年半年度报告，2024H1 全球半导体景气度回升，虽然行业竞争格局依然严峻，但是公司根据市场需求及时进行技术和产品创新，加速新品推出并不断优化成本，经营情况环比持续改善。公司新产品包括：1）新一代40nm 高压AMOLED DDIC，拥有特殊算法，功耗低而色彩逼真；2）大尺寸面板DDIC，可以支持120Hz 高刷新率，MiniLVDS 频率最高支持465MHz。新产品已经陆续导入市场。Xinxiangwei's 2024Q2 revenue and gross margin rebounded month-on-month, and the recovery trend was initially evident. The company launched a 40nm high-voltage AMOLED DDIC and a large 120Hz high-brush DDIC to accelerate cost optimization. At the same time, the company continues to invest in R&D of chips such as PMIC and TCON. Maintain an increase in holdings rating.
Key points to support ratings
Xinxiangwei's 2024Q2 revenue and gross margin rebounded month-on-month, and the recovery trend was initially evident. Xinxiangwei 2024H1's revenue is about 0.231 billion yuan, YoY +5%; gross margin is about 15.9%, YOY-12.7pcts; net profit to mother is about -0.003 billion yuan, YoY -110%. Xinxiangwei's 2024Q2 revenue was about 0.131 billion yuan, QoQ +31%, YoY +7%; gross margin was about 17.8%, QoQ +4.4pcts, YoY 8.2pcts; net profit to mother was 0.008 billion yuan, reversing losses month-on-month, YoY -45%.
New product launch and cost optimization helped 2024H1's performance improve month-on-month. According to Xinxiangwei's 2024 semi-annual report, the 2024H1 global semiconductor boom is picking up. Although the competitive pattern in the industry is still severe, the company promptly innovates technology and products according to market demand, accelerates the launch of new products and continuously optimizes costs, and the business situation continues to improve month-on-month. The company's new products include: 1) a new generation of 40nm high-voltage AMOLED DDIC with special algorithms, low power consumption and realistic colors; 2) large panel DDIC, which can support a high refresh rate of 120Hz, and the miniLVDS frequency supports up to 465MHz. New products have been introduced to the market one after another.
Adhere to technological innovation and promote investment in chips such as PMIC and TCON. Xinxiangwei 2024H1 R&D costs about 28.14 million yuan, YoY +28%, accounting for about 12% of the company's revenue. The company adheres to technological innovation, is guided by market and customer needs, continuously expands new product lines, and promotes product upgrades and optimization. Currently, the company is focusing on the display driver chip circuit, continuing to expand the product categories of TFT-LCD, AMOLED display driver chips, display power management chips, and TCON chips, and accelerating the development and industrialization of new display chips such as Mini/Micro LED and new products such as electronic paper.
valuations
Because Xinxiangwei's actual performance in 2023 fell short of our original expectations, we lowered Xinxiangwei's 2024/2025/2026 EPS estimate to 0.09/0.17/0.24 yuan. As of the close of trading on August 27, 2024, the total market value of Xinxiang Micro was about 3.8 billion yuan, corresponding to 2024/2025/2026 PE was 93.2/50.2/34.0 times, respectively.
Because Xinxiangwei's 2024Q2 performance recovered significantly from month to month, we believe that the company's business situation has shown signs of a recovery from the bottom, so it maintains an increase in holdings rating.
The main risks faced by ratings
Market demand fell short of expectations. The competitive landscape in the industry has deteriorated. New technology research and development progress falls short of expectations.
