Memory giant Huabang Electric held a law conference on the 27th and announced the second quarter of 2018. According to the financial report, Winbond's second quarter revenue in 2018 came to NT$25.441 billion, an increase of 19 over the same period in 2017. %, compared with the 12.16 billion in the first quarter of 2018, an increase of 54%. The net profit after tax is 2.258 billion yuan, an increase of 100% over the same period in 2017, and an increase of 40% compared with the first quarter of 2018. 0.54 yuan, a new high level in history.
Winbond noted that thanks to factors such as rising market prices and increased production capacity, the gross profit margin for the second quarter of 2018 reached 39%, an increase of 1 percentage point from 38% in the first quarter of 2018, and also better than 2017. 31% of the same period. Operating profit of 2.458 billion yuan, an increase of 21% compared with the first quarter, also increased by 93% compared with the same period of 2017, net profit after tax of 2.258 billion yuan, EPS per share came to 0.54 yuan. Accumulated, the first half of 2018 combined camp Revenue reached 20.538 billion yuan, an increase of 19% over the same period of 2017. The gross profit margin was 38%, which was also higher than the 27% in the same period of 2017. The operating profit was 4.045 billion yuan, which was 112% higher than the same period in 2017. The net profit after tax was 37.28. 100 million yuan, EPS per share reached 0.94 yuan.
Winbond noted that the combined revenue and memory products line of the DRAM products business group in the first half of 2018 accounted for 53% of the second quarter revenue of Winbond, and revenue increased by 9.2% from the first quarter. In addition, DRAM product revenue growth and bit growth rate increased mainly due to market demand and process improvement. 38 nano DRAM products gradually focused on revenue performance. As for the flash product line, it was the second quarter of Huabang Power. Revenue was 47%, and revenue increased by 8.1% compared with the first quarter. Winbond is currently the largest supplier of NOR Flash products, and the growth momentum of SLC NAND Flash products comes from strong market demand.
According to Zhan Dongyi, general manager of Winbond, Winbond invested a total of about NT$35 billion between 2016 and 2018, most of which was used to increase the capacity and process of the Taichung Zhongke plant. Therefore, it is expected that the capacity will continue to increase. If the process technology is also improving, the benefits it will bring will begin to show from 2019 to 2020. We will wait and see.
Zhan Dongyi further pointed out that at present, Winbond has two major exhibit areas, including DRAM and flash memory. In terms of DRAM, DRAM supply remained stable in the first half of 2018 as demand for multiple applications increased. It is expected that the niche DRAM market will be in the second half of the year. In the case of continued stability, the overall performance is still healthy. Moreover, under the overall increase in the amount of film, Winbond's DRAM production capacity will also increase slightly. As for the process technology, independent research and development of 45 nanometers will be from 2018. At the end of the year, the two-year process was switched to 25 nanometers. Zhan Dongyi pointed out that after the production of 38 nanometers in 2017, the production capacity will continue to increase, while 25 nanometers will be mass-produced in the fourth quarter of 2018. In the future, Soon you will see the next generation of process technology appear.
In terms of NOR Flash, the seasonal inventory adjustment in the first quarter of 2018 has ended, and the second quarter began to rebound. The overall demand supply has also begun to balance. At this stage, NOR Flash has reached the 5X nano process. The bottleneck of some technologies will not be developed to the next node process. However, once customers have application requirements, Winbond will also consider the development of a new generation of processes. In SLC NAND Flash, In the current strong demand situation, it is expected that the second half of the year is expected to maintain stable business development. As for the Kaohsiung Luzhu new plant construction plan, Zhan Dongyi said that there are still many details that must be approved by the board of directors. Approval will be announced immediately.
