New product sales drive Nexchip’s revenue up nearly 20% in third quarter
Wafer foundry Nexchip Semiconductor Corp. (2249.HK; 688249.SH) reported on Monday that its revenue rose 19.57% year-on-year to 3.25 billion yuan ($533 million) in the third quarter, while its profit increased 5.23% to 229 million yuan. The company said the revenue growth was mainly driven by higher product sales.
Its quarterly gross profit increased 38.94% to 828 million yuan, while its gross margin rose to 25.46% from 21.91% a year earlier. Nexchip said economies of scale from higher sales volumes of new products contributed to the improvement. Quarterly revenue from display driver integrated circuit (DDIC) wafer foundry services stood at 1.84 billion yuan, accounting for 56.58% of total sales; while complementary metal-oxide-semiconductor image sensor (CIS) product sales totaled 870 million yuan, or 26.75% of the total.
The company expects its fourth-quarter revenue to reach between 3.2 billion yuan and 3.4 billion yuan, and its gross margin to range between 20% and 24%, down from 25.46% in the third quarter.
Nexchip’s shares opened higher on Tuesday in Hong Kong and traded at HK$19.22 by the midday break, up 7.49%. The stock is 40.5% below its Hong Kong IPO price of HK$32.30 in July.
By Lee Shih Ta
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