Unigroup Guoxin: Focus on the layout of new high-end security and vehicle safety controller chips

Recently, when conducting a survey of investment institutions, Unigroup Guoxin announced that with the development of 5G, the Internet of Things, and the Internet of Vehicles, the company will focus on the layout of new high-end security chips and vehicle-mounted safety controller chips.

Jiwei.com learned that Unigroup Guoxin currently includes integrated circuit business (smart security chips, special integrated circuits, semiconductor power devices), crystal business and joint venture business (FPGA chips, memory chips).

Among the three major business systems, the integrated circuit business is a well-deserved performance contributor. In the first half of 2020, the business achieved operating revenue of 1.368 billion yuan, accounting for 93.4% of the overall operating revenue.

In the integrated circuit business, smart security chips and special integrated circuits are the backbone of performance. The two products achieved a total operating income of 1.356 billion yuan, accounting for 92.65% of the overall operating income of the integrated circuit business.

It is understood that its smart security chips are mainly concentrated in the fields of telecommunications security chips represented by SIM cards, bank cards, and ID cards, financial payment security chips, and identity recognition security.

Among them, SIM card shipments accounted for the largest proportion, especially the overseas shipments of high-end SIM cards maintained rapid growth, which further optimized the product structure and layout in this field; in terms of bank cards, Unigroup Guoxin has now obtained the international SOGI CCEAL6+ certification. From the perspective of product quality and performance, it has received the highest international recognition.

Unigroup Guoxin said that it will fully enter the overseas market on the basis of ensuring a steady increase in domestic market share.

In response to questions from investment institutions such as "whether the super SIM card business and crystal business are affected by the new crown epidemic, and the third quarter performance forecast", Unigroup Guoxin also gave detailed answers. The following is the transcript of the survey.

1. Please introduce the company’s super SIM card?

Answer: Super SIM card is an innovative product launched by the company based on the technological advantages of its core chip products. It combines the dual functions of traditional SIM card and large-capacity storage. In this product, we use THD89, which is the world's first 40nm chip. The storage space of the super card currently has three mainstream models: 32G, 64G and 128G, which can meet the regular needs of ordinary consumers.

Since its first sale in Guangdong Unicom at the end of 2019, Super Card has been sold in more than 10 provinces and cities across the country, and is a product with great market potential. In addition, the THD89 series mentioned above also obtained the AEC-Q100 automotive certification last year, which also provided strong support for the company's market layout in the field of automotive electronics.

2. Has the company’s crystal business been affected by the COVID-19 pandemic?

Answer: The impact of the epidemic is not limited to the company's crystal business or the listed company as a whole. It brings uncertainty risks to the global economy. We have done a very good job in preventing and controlling the epidemic and actively resuming work and production, so we still have relatively good operating performance in the first half of the year.

For the crystal business, since 70% of its customers are overseas, exports have a certain impact. However, driven by factors such as the domestic 5G commercial base station network deployment, local substitution of high-end frequency components and the "new infrastructure" policy, the revenue of the crystal business achieved an increase of more than 20% in the first half of the year.

3. Make a forecast for the company’s third quarter?

Answer: At present, we maintain the data expected in the company's 2020 semi-annual report, that is, net profit will increase by more than 50% year-on-year. This is mainly based on the company's active resumption of work and production and its efforts to reduce the impact of the epidemic; at the same time, the company's special integrated circuit business maintains rapid growth and continues to contribute stable profits.

4. How is the company’s special integrated circuit business developing in the recent period and what is its future growth potential?

A: After years of accumulation, the quality level and competitiveness of the company's mainstream special integrated circuit products have been continuously improved, the brand effect has been prominent, and an efficient and virtuous cycle of scientific research, production and sales has been formed. At the same time, driven by the continuous pull of downstream demand and the company's efforts, the special integrated circuit business has maintained a rapid growth momentum, and future performance is expected to maintain sustained and rapid growth.