NEXCHIP

Nexchip Semiconductor opened sharply lower today, hitting an intraday low of 29.500 HKD before closing at 30.000 HKD, down 7.28% with an intraday range of 8.47%. The decline was driven by persistent weakness in the semiconductor sector. The stock has now retreated 18.48% from its 52-week high of 36.800 HKD set on July 9, and trades below its 20-day moving average of 30.833 HKD. Financially, Q1 2026 net profit plunged 60.41% YoY to 57.4 million HKD, with a net profit margin of only 1.74%, though revenue grew 20.06% to 3.30 billion HKD and operating profit reached 264 million HKD. While Huaqin Technology has increased its stake to 11.03% through multiple on-market purchases, the buying has failed to stem the stock's decline.

Nexchip Semiconductor closed down 5.01% at HK$28.02, hitting a post-IPO low, after a morning session high of HK$29.34 gave way to sustained weakness and a drop to the day's low in the afternoon. The broader semiconductor sector weakness was the primary driver, while Huaqin Technology's multiple stake increases to 11.03% since April failed to stem the decline. Market focus remains on earnings deterioration: Q1 2026 net profit plunged 60.41% YoY to HK$57.4 million, with net margin at just 1.74% and EPS down 54.63% YoY to HK$0.034, even as revenue grew 20.06% YoY to HK$3.30 billion. The stock is now 23.86% below its 52-week high of HK$36.80, down 13.25% YTD, and trades well below the 20-day MA of HK$30.89, with a PE of 88.82x and PB of 2.51x. However, Q4 2025's operating loss of -HK$102 million reversed to a Q1 2026 operating profit of HK$264 million, hinting at improving cost control.

Nexchip Semiconductor opened lower and continued to decline in the morning session, falling 5.1% to HK$30.80 by 10:11 BJ time, primarily driven by weakness in the A-share semiconductor sector dragging on H-share sentiment. The company reported Q1 revenue of HK$3.301 billion, up 20.06% YoY, but net profit plummeted 60.41% to HK$57.43 million, with a net profit margin of only 1.74% compared to 5.59% in Q4, and EPS of HK$0.034 down 54.63% YoY, significantly deteriorating earnings quality pressuring the stock. Intraday volatility was notable, hitting an early high of HK$32.32 before retreating sharply, with volume expanding to 792,000 shares and turnover of HK$24.84 million. The current price has fallen below both the MA20 and MA60 of HK$31.34 and is 16.58% below the 52-week high of HK$36.80, while recent multiple stake increases by Huaqin Technology to 11.03% had provided a temporary boost, though the stock's year-to-date decline is a relatively contained 4.95%.

Nexchip Semiconductor (2249.HK) staged a rally-to-retreat pattern in the morning session, opening at HK$34.44 before sliding sharply to HK$32.76 by 09:37 BJT, down 4.93% from the previous close of HK$34.46, with an intraday range of 4.5%. While Huaqin Technology has continued its on-market purchases, raising its stake to 11.03% from 10.2% since July 24, involving a cumulative ~HK$394 million, the stock failed to sustain yesterday's gains and gave back all early advances. On the earnings front, Q1 revenue grew 20.06% YoY to HK$3.30 billion, but net profit plunged 60.41% YoY to HK$57.43 million, with net profit margin narrowing to 1.74% from Q4's 5.59%, weighing on sentiment. The current price of HK$32.66 remains 11.25% below the 52-week high of HK$36.80, yet sits above the 20-day MA (HK$31.405) and YTD start (HK$32.30), resulting in a modest YTD gain of 1.11%. However, the stock trades at a lofty P/E of 103.53x and P/B of 2.93x, limiting upside.

Nexchip Semiconductor surged 4.92% in afternoon trading to close at HK$33.68, driven by Huaqin Technology's continued on-market stake accumulation. The stock oscillated between an intraday low of HK$31.94 and high of HK$33.68. Huaqin, through a subsidiary, lifted its stake from 10.2% to 10.82% over recent days, spending a total of HK$144.17 million. Financially, Q1 revenue grew 20.06% YoY to HK$3.30 billion, yet net profit plunged 60.41% to HK$57.4 million, dragging net profit margin down to 1.74%. The stock sits 8.42% below its 52-week high of HK$36.80, but has gained 4.33% year-to-date and trades well above its 20-day moving average of HK$30.97. However, a high P/E of 106.8x suggests stretched valuation.