World Q1 robust, PMIC, large-size panel and fingerprint recognition drive Q2 full production capacity

The first quarter of the world was operating steadily. Looking into the second quarter, the company is optimistic about the strong growth momentum of power management ICs, stable shipments of large-size panels, and growth in fingerprint identification sales. Currently, visibility of orders has reached the end of the season, and full-capacity production is expected in the second quarter. Estimated quarterly increase was 4.3%-10.5%. However, in the second quarter gross profit margin performance was mainly affected by factors such as electricity charges and salary adjustments of employees. Although the production capacity was fully opened, the gross profit margin was estimated to be between 31.5 and 33.5%, which was approximately the same as the previous quarter. .

The world's advanced is the world's leading manufacturer of 8-inch wafer foundry. Until the first quarter of this year, the main foundry products accounted for 30% of large-size panel driver ICs, 12% of small-size panel driver ICs, and 48% of power management ICs. Others (including fingerprint identification IC) 10%. The proportion of wafer foundry processes accounted for the proportion of revenue: 0.5 micron accounted for 26%, 0.35 micron 22%, 0.25 micron 14%, 0.18 micron and below (including 0.16 micron, 0.11 micron) 38%. The company currently has three 8-inch wafer fabs.

The company’s consolidated revenue in the first quarter was NT$6,425 million (same as below), which increased 0.8% quarter-on-quarter and increased 2.6% year-on-year. The gross profit margin was affected by the exchange rate, product mix, and production rate, which was 32.2%, down 1.74 from the previous quarter. The percentage point was about the same as that of the same period of last year. The operating profit rate was 22.5%; after-tax net profit was 1.148 billion yuan, which was a 5.7% decrease in the quarter and a 0.2% decrease in the year.

Looking ahead to the second quarter of operations, the company stated that the demand for high-current products (such as excavators) is still hot. The growth momentum of the power management ICs is strong this year, the kinetic energy of the small-sized panels is relatively slow, and the large-size panel shipments are stable. Identification ICs benefit from mobile phones, increased demand for access control, and sales growth.

The company expects its second-quarter revenue estimate to be between RMB 6.7 billion and RMB 7.1 billion, a quarterly increase of 4.3%-10.5%, affected by factors such as electricity bills and employee salary adjustment, gross profit margin estimated to be between 31.5 and 33.5%, and operating profit. The rate is estimated to be between 21% and 23%. According to industry analysis, the profitability of the company is expected to increase from the previous quarter.

The company stated that the current order visibility in the second quarter has reached the end of the season, and it is expected that the utilization rate will be fully loaded. By the second half of the year, the production efficiency will be increased as much as possible to increase the production rate to more than 100%. The total wafer shipment is expected this year. About 2% year-on-year growth in revenue from the product mix.

According to industry analysis, this year's power-related product market conditions are still optimistic. It is expected that the company's power management related products will grow by a large margin by 10% to 20% this year. Vehicle-related products account for less than 10% of total sales. In recent years, it is expected to maintain double-digit growth. However, with limited production capacity, only product mix can be deployed, making it difficult for operations to grow significantly.

2016 GoodChinaBrand | ICP: 12011751 | China Exports