Zhaoyi Innovation (603986) Third Quarterly Report Review: Third Quarterly Report Exceeds Expectations Strong Downstream Demand
I. Overview of the event On October 29, the company released three quarterly reports: January-September revenue of 22 trillion, an increase of 28%, and net profit of the mother company4.
500 million US dollars, an increase of 22% per year, net profit after deduction 3
9 ‰, an increase of 15% in ten years; net cash flow from operating activities was 7 ‰, an increase of 133% in ten years.
Second, the analysis and judgment of Q3 performance exceeded expectations, and the operation continued to improve Q3 performance beyond our previous judgment.
Q3 single-quarter revenue was 10 million, an increase of 63%, and a quarter-on-quarter increase of 34%.
60,000 yuan, a year-on-year increase of 98%, a month-on-year increase of 77%.
Q3 single quarter gross profit margin of 40.
6% for one year.
3pct, +3 from the ring.
1 pound; Q3 single quarter net interest rate of 26.
1%, ten years +4.
7pct, +6 chain.
The performance growth mainly benefited from strong downstream demand, process and product optimization, and gross profit margin extension. The scale effect continued to appear, and profitability continued to improve.
NOR Flash continues to be booming, benefiting from TWS + 5G demand. This cycle of Nor Flash boom is mainly driven by demand for TWS headsets, the Internet of Things, 5G base stations, etc. The production capacity of the foundry is tight, and continuous supply exceeds demand.
The company continues to launch 256Mb and 512Mb large-capacity products. The process and process are continuously optimized, and important breakthroughs have been made in consumer electronics, industrial control, automotive electronics and other fields.
Nand Flash has achieved mass production on 38nm SLC products, and small and medium capacity Nand Flash and eMMC products have continued to be launched.
The DRAM exceeded expectations in advance, and the planned increase in code DRAM Hefei Changxin’s first-generation 8Gb DDR4 DRAM was put into production ahead of schedule, and the products passed the verification of major customers at home and abroad.
The company plans to increase by no more than 43.
24 ppm, invested in DRAM chip research and development and industrialization projects, focusing on the research and development of DRAM technology in the 1Xnm level (19nm, 17nm) process, and plans to develop DDR3, LPDDR3, DDR4, LPDDR4 series DRAM chips.
The company has realized the layout of the entire product line of memory chips. Dingzeng will develop advanced process DRAMs in an attempt to locate internal gaps and open up long-term growth space.
Silicom has made important breakthroughs. MCU-made domestic replacements have accelerated Silicom’s mass production and replacement of branded mobile phone customers. Q4 is expected to improve sequentially, and 5G ultra-thin fingerprint solutions have matured.
In Q3, the MCU’s single-season MCU significantly improved over the cycle ratio, and continued to launch multi-series, cost-effective products, 南京夜生活网 benefiting from the domestic substitution trend.
Third, investment advice The company is the world’s leading supplier of memory chips and MCUs, benefiting from the independent and controllable trend of semiconductors, and is one of the national memory chip strategic platforms.
Due to NOR Flash funding and job hunting, the company cut into major international customers, the domestic substitution of chips accelerated, considering the impact of the acquisition of Shanghai Siliwei, EPS is expected to be 2 in 19/20/21.
21 yuan, corresponding PE is 66X / 43X / 34X.
The reference SW semiconductor industry PE is estimated to be 162 times, maintaining the “recommended” level.
4. Risk warnings: 1. Price fluctuations of raw materials such as wafers; 2. Price reduction of memory chips; 3. DRAM capacity climbs less than expected.