Benefiting from working from home, Paramount's revenue in the first half of the year increased by 15.4% year-on-year

High-speed transmission interface manufacturer Parade-KY has benefited from the strong momentum of PC-related product sales driven by the demand for working from home. Industry insiders are optimistic that its revenue will increase by 7% quarter-on-quarter this quarter, and it is expected to set a new high for two consecutive quarters. Its operations will continue to be strong, and the introduction of Mini LED specifications to iPad and Macbook will kick off the upgrade next year. In addition, the rising penetration rate of Mini LED will drive the average unit price of high-gross-margin clock control chips (eDP TCON) to rise year by year.

Benefiting from the global trend of working from home and distance learning in the first half of the year, which has driven strong demand for high-speed transmission devices, Parade's revenue in the second quarter was NT$3.632 billion, a quarterly increase of 22.6% and an annual increase of 28.59%, setting a new record. The cumulative revenue in the first half of this year was NT$6.594 billion, a year-on-year increase of 15.4%. Industry insiders are optimistic that the momentum of PC-related products will continue to be strong this quarter, and the revenue this quarter is expected to set a new record.

Industry insiders further analyzed that Apple has the opportunity to introduce Mini LED specifications into iPad and Macbook in 2021, kicking off the upgrade. Industry insiders estimate that the penetration rate of Mini LED in iPad and Macbook will be 9% next year, and the penetration rate will continue to increase to 20% in 2022, pushing up the average unit price of eDP TCON year by year.

Industry insiders predict that the shipment of high-speed transmission channel specification chips will explode after Intel launches Ice Lake server processors. It is estimated that the PCIe Gen4 retimer market size will be US$35 million next year, and the overall market size will increase to US$460 million by 2025. Currently, Parade's only competitor is Texas Instruments (TI), and it is expected that Parade's market share in PCIe Gen4 for servers will reach 80%.

Parade Chairman Zhao Jie said at a recent earnings conference that the market is concerned that PCs may face inventory adjustments this quarter, but based on customer feedback, current inventory levels are at the bottom, so he is still optimistic about the performance of the PC market this quarter.

Parade will hold an analyst briefing on July 30 to announce last quarter's operating results and release this quarter's operating outlook. Analysts expect that with the help of falling memory prices, it will be beneficial to optimize the product portfolio, and Parade's gross profit margin is expected to increase significantly last quarter.