The semiconductor company's net profit soared 941.05%

Despite the impact of the global epidemic, Wingtech Technology's company still maintains rapid growth. On August 30, Wingtech Technology released its 2020 semi-annual report. Due to the rapid development of performance, the company achieved operating income of 24.118 billion yuan in the first half of 2020, a year-on-year increase of 110.93%; net profit attributable to shareholders of listed companies was 1.7 billion yuan, a year-on-year increase of 767.19%; non-net profit was 1.442 billion yuan, a year-on-year increase of 941.05%; earnings per share (yuan/share) was 1.51, a year-on-year increase of 387.1%; R&D investment was 1.236 billion yuan, a year-on-year increase of 113%.

The announcement disclosed that the main reason for the substantial growth in performance in this period is that, on the one hand, the company's communications business has benefited from the international layout and optimized customer structure. In 2020, the shipments of domestic and international first-tier brand customers achieved strong growth compared with the same period last year. On the other hand, in November 2019, the company has achieved a controlling stake in Anshi Group and included Anshi Group's performance in the scope of consolidation according to a 74.45% shareholding ratio, which led to a substantial increase in net profit in this period compared with the same period last year. It is expected that the cumulative net profit in the first three quarters will still increase significantly compared with the same period last year.

Data shows that the top five customers of Wingtech Technology had a revenue of 18.89 billion yuan, accounting for 78.32%; the top five suppliers had a purchase amount of 5.25 billion yuan, accounting for 33.2%. This fully reflects that Wingtech's customer concentration has declined and its customer coverage is wider; suppliers are relatively dispersed and have strong bargaining power. In the first half of 2020, under the impact of the epidemic, global mobile phone shipments plummeted by more than 10%. However, because consumers are more sensitive to prices, the mid- and low-end cost-effective models provided by Wingtech Technology to customers are more favored by consumers, and shipments have increased instead of decreased. Coupled with the optimization of customer structure and the enhancement of Wingtech's product competitiveness, the net profit of a single machine has increased significantly compared with 2019. Although Anshi Semiconductor, a subsidiary of Wingtech Technology, has suffered a certain impact due to the decline in sales of automotive customers, it has successfully developed customers in the consumer special communications market with the cooperation of Wingtech, and its share has increased significantly.

Wingtech Technology is a world-leading communications and semiconductor company, maintaining in-depth cooperation with major global brands in the fields of mobile phones, PCs, IoT, and automobiles. Its subsidiary Wingtech Communications Co., Ltd. is the world's largest mobile phone ODM company, and Nexperia is a European semiconductor company with a 60-year history of development. It was formerly the Standard Products Division of Royal Philips Semiconductors of the Netherlands. It ranks among the top three in the industry in the fields of diodes, transistors, ESD protection devices, logic chips, MOSFETs, etc., and its products are widely used in mobile phones, PCs, IoT, automobiles and other fields.

As a high-capacity enterprise in the field of semiconductor basic component production, Nexperia's products are widely used in various electronic designs around the world, especially gallium nitride (GaN) technology, which is the world leader. Li Gang, an industry analyst at the authoritative research organization Sino, believes that as the only global leading power device IDM manufacturer controlled by Chinese capital, Nexperia has broad development space for domestic substitution and is of great significance. Nexperia's operating income in 2019 was 10.3 billion yuan, ranking first among domestic power semiconductor manufacturers, and its current domestic market share accounts for about 10%-15%. It is estimated that the domestic power device market size is about 6 billion US dollars. Under the wave of domestic substitution, Nexperia has broad room for future development.

Nexperia Semiconductor (China) Co., Ltd. is China's largest power semiconductor company

Pan Liang, chief analyst of electronics at Tianfeng Securities, believes that Wingtech Technology's business is extending from mobile phones to multi-directional smart hardware and semiconductor fields in the automotive industry, and realizing the synergy brought by acquisitions. At the same time, the company's ODM business has successfully entered overseas major customers after adjusting its customer structure in the past, and its profitability has increased significantly. He is optimistic about the company's growth in the second half of the year. It is expected to achieve a net profit attributable to the parent of 4.207 billion/5.504 billion/7.139 billion yuan in 2020-22, and is optimistic about the future extension from mobile phones to multi-directional smart hardware and semiconductors in the automotive industry, and continued performance is expected.