Giant Guo Chen Taiming: MLCC, chip resistors out of stock to 2019 without solution

Leading manufacturer of passive components giant Guoda today holds a regular meeting of shareholders. Chairman Chen Taiming stated that the (2017) year was a year in which the country’s giant transformation began. The company’s revenue, gross profit, net operating profit, pre-tax/after-tax net profit, and EPS hit a record. A record high in history, which is related to the country's giant forward-looking layout and focus on the industry, the expansion of niche products, optimization of customer portfolio; Looking forward this year, he said that the current giant MLCC's order shipping ratio (BB value) is 2 times, the chip The resistance is 3 times. Currently, the customer is still in stock allocation. It is estimated that there will be no shortage of goods until 2019. As for the outside acquisitions, he said that after the merger and acquisition of Puth, there will be opportunities to design from the source of the product in the future. , The future also hopes to combine such companies, and to join more players in the World Cup in Taiwan.

Chen Taiming personally presided over the shareholders’ meeting at 9 pm on time. In the face of the small shareholders' speeches on each motion, Chen Taiming strongly urged the minority shareholders to refer to the proceedings, and voted on a case-by-case basis, admitting last year’s EPS of 15.64 yuan and passing a cash dividend of 15 yuan. , Stock dividends were 2 yuan, a total of 17 yuan.

After the meeting, Chen Taiming and the media tea party said that last year the shareholders’ meeting explained to everyone that the market phenomenon was that demand was greater than supply. This situation has not improved so far. From the company's BB value, MLCC’s demand is more than double the supply. The chip resistance is 3 times. The status of the industry still has no solution by 2019. There is a big gap between supply and demand. There is no way to balance.

He further pointed out that in the past, the passive component industry was unhealthy for a long time, and the price of Japanese high-end products was very high. Only high-end products made money, while the middle- and high-end products did not make money because they wanted to compete with their peers. For example, Chen Taiming, if high-end products 100 Yuan, Reasonable high-end products should be at 6, 70 yuan, but in the past it was only a few yuan, which is unreasonable. Today, after the price adjustment, the price has returned to 2,30 yuan. The market conditions are a little more reasonable.

Chen Taiming said that this gap is due to the shift from Japanese to high-end areas such as automotive and industrial use. Japanese companies will suspend orders for 2,500 items in 2019 and formally stop shipments in 2020. Japanese manufacturers’ total production capacity is 30%, of which only 5% will be transferred to the small size, so the relevant orders will be transferred to Taiwan. As for the land system, due to the high threshold of MLCC, the proportion of land-based plants is small, accounting for less than the global 6%, even if the expansion of production, does not affect the market.

He also believes that when Japanese manufacturers switch to higher-priced markets with better prices, they will not return to the mid-tier market when investing in new capital expenditures. Therefore, on the next wave day, the expansion of Taiwanese and Korean manufacturers is quite equivalent. Self-discipline.

Regarding outsiders that the country’s huge gross profit rate is over 50 percent, and whether it is profitable, Chen Taiming emphasized that Guo Ju has the world’s most extensive and best sales channels. The structure of its customers, currently among European and American customers, accounts for 40% of high-level orders, and Among the customers, the higher-order share accounted for 50% higher. This is the reason why the country's giant gross profit margin can go higher. He also pointed out that Guoju’s distribution in Europe and the United States is mainly direct sales, and direct sales to Taiwan factories in the Greater China region. The original principle of the distribution was the main distribution. In this wave of supply shortage, the proportion of Guo Ju’s sales has not changed. It is the company’s new, high-end application development, and favorable profit performance.

Finally, I talked about mergers and acquisitions. Chen Taiming said that everyone can see that PSU is designing in the big factories like Google, Amazon, Cisco, and TESLA. The giants of China must play in the World Cup. They must be designed from the source. In Taiwan, There are many companies in Taiwan that have good technology in their own fields, and they have been doing OEM for a long time. Therefore, Guoju hopes to combine more and better companies to provide more and more complete products and services. To provide a gateway to globalization, niche-based customers, to look beyond the world, to regard the world as our market, believe that the giant's global access can be very effective.

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