Semiconductor shipments are booming and the net profit after Q3 tax rises 38%

Chongyue Q3 financial report was released, although the Q3 shipments of semiconductor materials related to electronic materials, solar/LED, etc. all declined significantly, resulting in a slight decrease of 2.85% in revenue, but in the semiconductor product line with higher gross profit margin. Under the note, the gross profit margin of the single quarter was 12.26%, and the profit margin was 6.64%, which was improved compared with 11.26% and 5.97% of Q2. After the Q3 tax, the net profit of the Q3 tax also rose against the trend, with a significant increase of 38.44% to 252 million yuan (the new Taiwan dollar, the same below), setting a new high in a single season in the past year.

Chong Yue pointed out that Q3 is actively expanding due to the large customer TSMC, and the demand for 28nm process continues to be strong. The revenue share of semiconductor-related (silicon-containing wafers, photoresist, quartz, slurry, etc.) is 70% of Q2. It rose to 79%, electronic materials (mainly shipped to passive component plants) accounted for 12%, solar and LED accounted for 6.5%, environmental engineering accounted for 1.6%, and others accounted for 0.1%.

Looking ahead to Q4, Chong Yue said that with the adjustment of the semiconductor industry inventory, the fab's 28nm process demand is still prosperous, but the 65/40nm process will see a significant decline. In terms of other product line performance, Q3 shipments are expected to remain at least flat and will not be worse, as Q3 performance has been weak. Overall, Chongyue expects a small drop in Q4 revenue, but gross margin is expected to remain at the same level as Q3, maintaining around 12%. However, as TSMC's Q4 revenue decline is less than market expectations, Chongyue's estimated Q4 revenue may also be relatively stable, with an estimated quarterly decline of approximately 5%-10%.

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