The company had previously entered the off-season due to customer demand for WiFi solutions such as telecoms and on-board boxes. In addition, Samsung, a major customer, was affected by S9's entry into the conversion period, which resulted in a decrease in shipments of its foundry FM chips, which resulted in lower revenue and gross margin performance than corporate expectations. From last year's peak of 135.5 yuan, it has slipped to the recent low of 66 yuan. The stock price has returned 52%, and the trading volume has shrunk further to below 500 sheets.
However, as the mainland's three major telecommunications operators began releasing their new year-to-date bids in April, their operations began to improve. Legal entities pointed out that the establishment of China Telecom’s customers through Taiwan and China’s mainland China Netcom’s (ZTE). , Hangzhou area and other new targets, is expected to start in June WiFi chip shipments will be heavy, and continued into the third quarter.
In addition, the company’s new Switch solution reduces costs and starts shipping to customers in mainland China. The gross margin of new customers will increase. Although the unit price is still under pressure, the revenue will grow significantly. Samsung’s wisdom After the S8 and S9 conversion periods in the first half of the year, handsets are expected to ship heavy volume in the second half of the year, which will drive the increase in volume of shipments of the company’s FM products and improve the product structure. The gross profit margin in the second half of the year is expected to rebound rapidly.