According to a comprehensive report from Micronet, passive giant Daejeon Guoju announced its first-quarter financial report for the first quarter of this year. Its gross profit margin, profitability rate, and after-tax net profit all hit record highs. The average gross profit margin exceeded 50% to reach 51.4. %, after-tax net income per share up to 12.15 yuan (NTD, hereafter).
According to statistics released by Guo Ju, the single-quarter consolidated revenue was RMB 11.023 billion, which was 14.2% higher than the previous quarter and 61.7% higher than the same period of last year. The combined net profit attributable to owners of the parent company in the first quarter after tax was NT$ 4.258 billion yuan, an increase of 420.5% year-on-year, after-tax EPS of RMB 12.15 per share; in the first quarter, the gross profit margin was 51.4%, an increase of 7.7 percentage points from the previous quarter, and an increase of 28.7 percentage points from the same period of last year. The profit-earnings ratio was 42.4%. The quarterly increase of 7.4 percentage points, an increase of 28.7 percentage points year-on-year.
Guo Ju pointed out that the single quarter combined operating income, operating margin, net operating profit, net profit after tax, and after-tax earnings per share set another record high in the first quarter, mainly due to the proportion of shipments of high-end automotive electronics and industrial products. Ascension, high-end customer demand grows steadily, benefit from expansion of niche-type products appears, MLCC and chip resistor supply and demand status continue to be in short supply, and the company's overall operations and product portfolio continue to be optimized.
Looking ahead, there are still many uncertainties in the global economy and industry. For example, there are still disputes in international trade, the international environmental protection regulations are tightened, exchange rate fluctuations and interest rates are affected, and the price of passive components is the same as the industry, and the country’s giant companies will continue to increase. Technical capabilities and compliance with local environmental protection regulations, prudent implementation of necessary financial hedging strategies, expansion of niche-type vehicle manufacturing capacity, and optimization of product and end-user portfolios to maintain the company’s international competitiveness and drive performance and profitability Further growth.
2. Micron: High threshold for memory industry Mainland manufacturers are hard to catch up in the short term;
China's active development of memory and the scouring of US-based Micron, the global manufacturing senior vice president Wayne Allan said yesterday (24) that it is difficult to develop memory barriers. Micron has 40 years of manufacturing experience and rich intellectual property rights. (IP), as well as talented people, not the mainland can catch up in the short term.
Regarding the heightened trade war between China and the United States, Allen stressed that it is closely monitoring the development of the incident and will consider and assess risks in various ways. However, there is currently no negative impact. The mainland will place great emphasis on the protection of intellectual property, and Micron will be happy to see it. Until now, it has not considered the plan of technology licensing to mainland manufacturers.
He pointed out that there are many barriers to the development of memory, access is very difficult, there are patents, IP and other issues, the mainland competitors are not easy to catch up in a short period of time, Micron has been cultivating the memory industry for 40 years, still pursuing innovation, this is a very important thing.
Allen said that in addition to having huge funds, excellent talents, experience and IP are all important factors in the development of memory, Micron has been working in the memory industry for a long time, and has a wealth of patents. IP, Chinese companies need to invest in DRAM and NAND Flash. First of all, To meet customer requirements for quality, efficiency and other conditions, it is not possible to catch up with Micron in a short time.
Allen predicts that the annual global memory DRAM production is estimated to increase by 20%, and NAND Flash's production capacity will increase by approximately 45%. Micron currently has no plans to increase production of new plants in the DRAM industry. It will enhance its competitiveness by processing technology and meet customer needs. As for NAND Flash output, the annual growth rate of production capacity will exceed 45% this year, which is higher than the industry average.
In addition, the supply and demand of memory market this year is still in balance, especially DRAM market conditions, supply and demand are still in a healthy state, the price is expected to stabilize until the end of this year. Micron optimistic about this year's Micron global memory including DRAM and storage type memory (DRAM) production, he stressed that To enhance global competitiveness, Micron has made Taiwan an excellent manufacturing center for DRAMs. It has achieved good results and also fulfilled its commitment to the government to continue hiring high-level technical personnel.
He said that this year's global memory, DRAM production is estimated to increase by 20%, NAND Flash production capacity increased by approximately 45%, Micron currently does not increase the production of new plant projects in the DRAM field, will enhance manufacturing technology, enhance competitiveness and meet customer needs. As for NAND Flash output, the annual growth rate of production capacity will exceed 45% this year, which is higher than the industry average.
3. Korean chip giant SK Hynix Q1 operating profit of 25.6 billion yuan, an increase of 77%;
According to ZDNet Beijing Times April 24, South Korea's chip giant SK hynix announced its first quarter earnings report for 2018. Financial results show that SK hynix’s operating profit reached 4.3673 trillion won in the first quarter (approximately 256.24 percent). (100 million yuan), an increase of 77% over the same period last year, setting the company's second-highest record ever.
In the quarter, the South Korean second-largest semiconductor company’s net profit was 3.1213 trillion won (approximately 18.3 billion yuan), and its revenue reached 8.7197 trillion won.
SK hynix said that although the first quarter was usually off-season, the price of storage chips remained strong. Thanks to strong demand for memory chips, the company’s operating profit in the fourth quarter of last year reached 4.4658 trillion won, a record high. .
In the first quarter, SK hynix's DRAM memory shipments fell 5% from the previous quarter, due to weak demand from the mobile phone industry. However, the average selling price of DRAM memory increased by 9%, which offset the impact of sales decline.
SK hynix's NAND flash shipments fell 10% month-on-month, while prices fell by 1%.
According to the company, looking forward, the Internet data center will continue to promote the demand for DRAM memory. Thanks to new features such as artificial intelligence and continuously improving cameras, mobile DRAM will also emerge in the smart phone industry, although the industry is gradually becoming saturated. , NAND flash memory demand from corporate SSDs will continue to soar.
According to previous data, Samsung Hynix’s competitor Samsung Electronics’ operating profit reached 15.6 trillion won (approximately RMB 91.46 billion) in the first quarter driven by strong demand, setting a record for the company’s single-quarter operating profit. (Compiling/Sail) Phoenix Network Technology
4.2017 memory market scale reached 130 billion US dollars, an increase of 61.8% over the same period last year;
According to the final statistics from Gartner (Gu Neng), an international research and consulting agency, not only did global semiconductor revenues total US$420.4 billion, but also exceeded the US$400 billion mark for the first time in 2017, driven by a surge in memory prices. The top 10 manufacturers also shuffled their rankings. Samsung surpassed Intel for the first time to take the top spot in the world's leading manufacturers. Western Digital (WD) was buoyant with NAND Flash sales. The ranking jumped from 17 in the previous year to ninth in last year. MediaTek Out of the top 10 rankings.
According to Gartner's final statistics, global semiconductor revenues totaled US$420.4 billion in 2017, a 21.6% increase from the US$345.9 billion in 2016, which was mainly due to the significant increase in DRAM and NAND Flash prices last year. Shuffle, the top five major manufacturers are Samsung, Intel, SK Hynix, Micron, and Qualcomm, respectively, and 3 are memory factories.
Gartner Research Director George Brocklehurst said that in 2017, the semiconductor industry created two major records. The first is that the overall revenue exceeded the $400 billion mark and came to a scale of $420.4 billion. The second is Samsung Electronics' steadily sitting in the global semiconductor industry for 25 years. Leading Intel has become the world's largest manufacturer. The reason why these two major records can be achieved is because of the rapid growth of the memory market. The shortage of supply has driven up the price of DRAM and NAND Flash.
In 2017, the memory market revenue increased by nearly 50 billion U.S. dollars. The market size reached 130 billion U.S. dollars, which is 61.8% higher than 2016. In 2017, Samsung’s memory revenue increased by nearly 20 billion U.S. dollars, allowing Samsung to reach the championship. However, Gartner predicts that Samsung will not take too long to dominate. When the memory market enters a down cycle, the advantage will disappear and it is likely to happen by the end of 2019.
In 2017, the memory sector was booming, eroding other equally strong growth categories. Semiconductor non-memory semiconductor revenues increased by US$24.8 billion to US$290 billion, only 9.3% over the previous year. Among the top 25 semiconductor manufacturers, including Many integrated suppliers such as Texas Instruments, STMicroelectronics and Infineon have achieved extremely high growth rates, which have benefited from the significant growth of the two key markets of industry and automotive.
According to Gartner statistics, in 2017, the annual growth rate of the top 10 semiconductor manufacturers in the world totaled 30.6%, accounting for 58% of the total market. The top 10 companies outside the total revenue of all manufacturers only slightly increased by 11%.
Looking at 2017, the closing rate of mergers and acquisitions is relatively slow. The transaction amount and the number of cases is only about half of 2016. However, the scale of semiconductor industry mergers and acquisitions continues to expand, and the complexity is even higher, all of which make closing a more challenging case. Avago's $37 billion acquisition of Broadcom set a new record, but it should soon be overtaken by Qualcomm's acquisition of NXP, which amounts to $44 billion.
5.SEMI: The global sales of semiconductor materials in 2017 amounted to USD 46.9 billion;
SEMI (International Semiconductor Industry Association) announced that 2017 global semiconductor materials market grew by 9.6%, worldwide semiconductor sales increased by 21.6%, SEMI report pointed out that the total amount of wafer manufacturing materials and packaging materials in 2017 totaled 27.8 billion US dollars and 191 Billion US dollars. In 2016, the wafer manufacturing materials and packaging materials market revenues were 24.7 billion US dollars and 18.2 billion US dollars, respectively, an increase of 12.7% and 5.4% year-on-year.
This year, China’s Taiwan region was 10.3 billion U.S. dollars, ranking eighth in the world’s largest buyer of semiconducting materials. China is second, followed by South Korea and Japan. Taiwan, China, Europe and South Korea have the largest revenue growth, and North America , Japan, the rest of the world (ROW) The material market has experienced single-digit growth. (The rest of the world is defined as Singapore, Malaysia, Philippines, other parts of South Sea and smaller global markets.)
6. MLCC shortage of goods continued to the end of the year, the country’s huge revenue growth continues;
The prices of MLCCs and crystalline resistors have risen several times last year. However, the demand for passive components in end products continues to increase. With industry manufacturers cautiously expanding production, the market expects that the stock shortage will continue at least until the end of 2018. Related manufacturers include countries. Giant, Huaxin Branch, Kellett New, etc. can be profitable.
At the end of 2017, Guo Ju announced that it would stop accepting new orders for chip resistors, coupled with the Kunshan government's pollution restriction order and the impact of short-term production factors such as the Lunar New Year holiday. Each resistance plant will announce that it will increase prices in early 2018.
Qunyi Gu indicated that in the continuous increase in the demand for passive components of end products and the cautious expansion of production by various resistance plants, it is expected that the supply and demand of the resistance market will gradually tighten in 2018. In the future, it is still highly probable that resistance plants will again increase their prices.
Since the first half of 2018, the price increase has been announced for the third time. Under the gradual fermentation of price increase benefits, it is expected that the gross profit margin will be significantly improved again in the first half of the year, and the revenue and profit performance will also be synchronized to a record high. The shortage of MLCC/chip resistors continued until 2019, and the country’s giant will continue to be strong in terms of continuous expansion of production capacity and the continuation of price increase benefits.
As for the new Qili new continuous expansion of high-margin products, such as one-piece inductors, magnetic powder, metal plate micro-resistors, etc., new production capacity will also be released in 2018. Economic Daily