Consumer electronics chip companies rebounded in the third quarter

The global semiconductor industry is still in the trough period, but the recovery is in sight, consumer electronics chips and memory chips took the lead in picking up, the third quarter A share A number of consumer electronics chip company performance rebounded significantly, especially the mobile phone supply chain company performance this quarter compared to the previous two quarters to restore profit growth.

Mobile phone supply chain chip performance rebounded

With the inventory management of smartphone manufacturers coming to an end in the second half of the year, the performance of upstream components and chip manufacturers improved significantly in the third quarter.

Zhuosheng Micro (300782) achieved sales revenue of 1.409 billion yuan in the third quarter, an increase of 80% over the same period last year, net profit attributable to the mother of 452 million yuan, an increase of 94% over the same period last year, withholding non-attributable net profit of 448 million yuan, an increase of 96%, the overall performance exceeded the expected growth.

Zhuo Shengwei said that benefiting from the transmission of holiday consumption in the second half of the year, the further optimization of the inventory structure of end customers, and the further expansion of the filter module, the company's operating income grew in the third quarter.

The main products of Zhuosheng Micro are radio frequency, radio frequency and digital soc chips for wireless communication, which is an important member of the mobile phone supply chain.

Galaxy Securities believes that in the first half of the year, due to weak industry demand and other factors, Zhuosheng micro performance was affected, from the third quarter revenue point of view, the overall performance growth exceeded expectations. There are two main factors: in the second half of the year, major customers release new products, and the company's products have strong barriers, the relevant material number is basically independent, and with the arrival of the industry season, the industry chain and ODM/OEM related manufacturers have replenishment inventory and new equipment for downstream customers, resulting in the company's overall demand exceeding expectations.

Another consumer electronics chip company Weil shares (603501) in the third quarter of the company's performance improved significantly, net profit increased nearly three times.

From January to September this year, the operating income of Weil shares was 15.081 billion yuan, down 1.96% year-on-year, net profit was 368 million yuan, down about 80% year-on-year, and basic earnings per share was 0.31 yuan. Among them, the third quarter revenue of 6.223 billion yuan, an increase of 44.35%, an increase of 37.58%, net profit of 215 million yuan, an increase of 279.61%.

Weil shares announced that in the third quarter, with the gradual recovery of downstream demand, with the help of the company's new products, the company's revenue from semiconductor design business achieved significant growth. The company's semiconductor design business achieved revenue of 5.446 billion yuan, accounting for 87.52% of the operating revenue. In the third quarter, the company's revenue structure was gradually optimized, and the average gross margin level was significantly improved quarter-on-quarter. The company actively promoted inventory reduction, as of the end of the third quarter, the inventory amount dropped to 7.552 billion yuan, 38.88% lower than the end of the previous year.

According to the annual industry strategy report released by Founder Securities, domestic simulation companies have entered the integration stage since 2023, and the bottom signal of the industry has emerged. From the performance data of domestic manufacturers, the revenue of domestic simulated manufacturers grew in the second quarter quarter-on-quarter, and the number of days of inventory turnover has been significantly improved, reflecting that industry demand has been recovering since the second quarter of 2023. Benefiting from the recovery of downstream demand, the digital IC industry achieved a quarter-on-quarter recovery in the second quarter of this year; Inventory levels are also gradually decreasing, with inventory levels falling in all market segments.

Memory chips open prices, manufacturers inventory improvement

The memory chip market is also highly consistent with the consumer electronics cycle, with the recovery of the consumer electronics market, memory chips ended several quarters of price decline in the third quarter, memory chips began to rise in price, and the performance of related companies in the third quarter has also been improved and improved.

Memory chip manufacturer Zhaoyi Innovation (603986) operating income in the third quarter of 1.429 billion yuan, down 28.14% from the same period last year, down 12.05% from the previous quarter, to achieve a net profit of 98 million yuan, down 82.71% from the same period last year, down 47.45% from the previous quarter, the company's overall performance in line with expectations.

Zhaoyi Innovation explained that this quarter is mainly the chip market prices showed a downward trend, although the company's product sales have increased, the company's revenue is still under greater pressure. However, the company's inventory level continues to decline, the memory cycle trough has passed, the company's inventory at the end of the third quarter was 2.091 billion yuan, a quarter-on-quarter reduction of 0.24 million yuan, and the inventory is expected to continue to decline in the fourth quarter.

Baiwei Storage (688525) in the third quarter of this year to achieve operating income of 974 million yuan, an increase of 21.61%, an increase of 34.78%; Net profit attributable to shareholders of listed companies was -187 million yuan, down 807.25% year-on-year.

Baiwei Storage explained that the net profit loss was mainly caused by the following reasons: the storage industry prosperity is at a low level, the company's gross profit margin in the third quarter fell 16.31 percentage points compared with the same period last year.

Although the performance of relevant companies has not improved significantly in the third quarter, the industry inventory has decreased and the giants have started to raise prices, and relevant companies will usher in improved performance in the next four quarters.

Public information shows that memory chip giants Samsung and Hynix are opening a new round of price increases, which is an important signal of memory chip warming. Among them, Samsung's latest storage offer to customers in the fourth quarter rose by 10%-30%.

Cinda Securities reported that it is expected that with the original factory to maintain the supply strategy of reducing output and limiting sales, as well as the gradual improvement of the demand side, the rise in storage prices may continue to the first half of next year.

Semiconductor equipment plant performance is stable

Compared with the sharp fluctuations of the chip design end, the semiconductor equipment is relatively stable, especially the performance of China's local semiconductor equipment companies has been in a steady growth trend in recent years.

Naura (002371) revenue in the third quarter was 6.16 billion yuan, an increase of 34.88%; Net profit attributable to the parent was 1.08 billion yuan, up 16.48% year on year. Earnings per share were 2.04 yuan. Naura's operating revenue in the first three quarters of this year was 14.588 billion yuan, up 45.7% year on year; Net profit attributable to the parent was 2.884 billion yuan, up 71.06% year-on-year; Basic earnings per share 5.4478 yuan.

Naura said that the growth in revenue in the first three quarters of this year was mainly due to the rapid growth of the company's electronic process equipment revenue, which increased the overall operating income. According to the announcement, the revenue of electronic process equipment during the period was 12.9 billion yuan, an increase of 63.43%.

Naura said that the company is currently full of orders in hand, as of the end of June 2023 contract liabilities of 5.886 billion yuan, an increase of 51.20%.

Another semiconductor equipment company (688012) in the third quarter of 2023 revenue of 1.515 billion yuan, an increase of 41.40%; Net profit was 157 million yuan, down 51.76% year-on-year; Net profit after deduction was 215 million yuan, an increase of 5.68%.

Among them, the revenue of etching equipment from July to September 2023 was 1.148 billion yuan, an increase of about 63.53% over the same period last year; In the same period, MOCVD equipment revenue was $110 million, down about 25.02% from the same period last year.

In an investor survey, the company said that the company's overall orders are abundant. Thanks to the company's long-term focus on the development of high-end semiconductor equipment and the provision of high-quality professional services, the company's overall cooperation with customers is progressing smoothly, and we are full of confidence for subsequent orders.

Founder Securities believes that with the continued volume of revenue, domestic semiconductor equipment manufacturers will benefit from scale effects and increase net interest rates. The per capita income and profit level of domestic suppliers still have more than 50% room for improvement compared with overseas manufacturers, and there is broad room for growth.

Computing chip performance pressure

Since the beginning of this year, all kinds of large models have formed a pull on computing chips, which is also a bright color in the semiconductor industry downturn, and Nvidia is the biggest beneficiary.

Although local computing chip manufacturers have also benefited, the performance improvement is limited. Cambrian (688256) in the third quarter of this year to achieve operating income of 31.3428 million yuan, down 66.15%, attributable to shareholders of listed companies net profit loss of 263 million yuan, a loss of 322 million yuan in the same period last year, the loss has narrowed, withholding non-net profit loss of 308 million yuan, narrower than the loss in the same period last year.

In the first three quarters of this year, Cambrian's operating income was 146 million yuan, down 44.84% year-on-year, the net profit loss attributable to shareholders of listed companies was 808 million yuan, and the non-net profit was 949 million yuan, narrowing from the previous year's losses.

Huatai Securities believes that the third quarter is the traditional off-season of Cambrian, and the superimposed supply chain problems have a certain impact on the company's short-term operation. Cambrian said that the company is actively seeking solutions.

Huatai Securities believes that although the revenue scale of the first three quarters of the Cambrian is small, the current domestic AI large model enterprises have urgent needs for domestic AI chips, and domestic suppliers are relatively scarce, and the company's revenue scale is expected to increase rapidly after solving the supply chain problem.

In the third quarter of this year, Longson Zhongke (688047) achieved an operating income of 864.18 million yuan, a decrease of 36.53%; Net profit attributable to shareholders of listed companies - 103 million yuan; Net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses - 128 million yuan.

In the first three quarters of this year, Longson Zhongke achieved operating income of 394 million yuan, a year-on-year decrease of 18.49%; Net profit attributable to shareholders of listed companies -207 million yuan, a decrease of 383.24%; Net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses - 303 million yuan.

Longson Zhongke accepted investor research said that at present, the policy market has been able to see some good trends, the fourth quarter of this year should be better. In the future, from the perspective of the party and government, industry and education, the overall market size of PC, terminal and server business exists.

However, there are also good performance of computing chip manufacturers. Zhongke Shuguang (603019) achieved revenue of 7.758 billion yuan in the first three quarters, an increase of 5.03%; The net profit returned to the mother was 750 million yuan, an increase of 14.78%. In the third quarter, the revenue was 2.357 billion yuan, down 0.27% year-on-year, and the net profit was 206 million yuan, up 20.11% year-on-year. In the computing power stock, the performance is relatively bright.

Citic Construction Investment believes that Zhongke Shuguang and its subsidiary Haiguang Information maintain a leading position in the field of credit creation, and the CPU product Haiguang 3 performs better, and Haiguang 4 is about to be released. DCU product Deep Computing 2 was released this quarter and has been commercialized in big data, AI and other fields. In the context of high-end GPU chip supply restrictions, the company will usher in good development opportunities in Xinchuang general server and AI server.

Founder Securities believes that localization of computing power chips is imperative. For local computing companies, it takes time to solve product supply and product performance problems.