Zhongying Electronics: The company's home appliance chip sales growth rate is limited by production capacity and inventory is small

On June 8, Zhongying Electronics said in its latest investor event that the company's home appliance chip sales growth rate was limited by production capacity. In the first quarter, home appliance and motor product sales increased by 13% year-on-year. Currently, there are very few finished products in stock, and most of the products are sold, mainly semi-finished products. The company and its distributors have basically no inventory. The company's home appliance end customers may have some finished product inventory, but it is difficult for us to fully grasp it.

Jiwei.com learned that MCU is one of the most in-demand products in the semiconductor field at this stage, and Zhongying Electronics' MCU products are also in short supply in the market.

Zhongying Electronics said that the company currently has nearly 100 MCU product models, with a single-digit increase each year. The application of traditional products continues to expand and the penetration rate increases. The company's MCU products are cost-effective, which is conducive to further increasing import substitution of white appliances and has a long product life cycle.

The Internet of Things is one of the most popular areas for MCU product applications at this stage. Zhongying Electronics said that the company's existing MCU+Bluetooth solutions have been used in the field of medical applications. The WiFi technology currently being developed is mainly based on low power consumption, high compatibility, high reliability, and long transmission distance. The company's existing 32-bit MCU is mainly used in the field of variable frequency air conditioners and Internet of Things applications. For smart homes, the company's MCU chips will reserve ports to allow customers to achieve interconnection of home appliances through WiFi or Bluetooth. It is hoped that in the future, it will be able to provide customers with MCU plus wireless transmission integration solutions.

In terms of AMOLED display driver chips, Sinowin pointed out that the chip has the market characteristics of large single product volume and low gross profit margin. The new production capacity that the company strives for in the short term is still unable to absorb customer order demand, but it is expected to improve quarter by quarter. The cost of the new production capacity is still higher. This year's AMOLED gross profit has increased compared to last year, but it is still lower than the company's average gross profit.

Zhongying Electronics further stated that display driver chips are currently mainly taped out in domestic wafer fabs. Since a certain production capacity has been guaranteed in advance, the company's AMOLED display driver chips are highly competitive, and the process yield of domestic screen factories has improved significantly, the domestic market scale has expanded, and it is expected to usher in more sales growth opportunities.

Regarding the situation of lithium battery management chips, Zhongying Electronics said that the company invested in the research and development of lithium battery management chips in 2007, and the technical barriers are high. The company's sales of lithium battery management chips in the first quarter increased by more than double year-on-year. The growth contribution of lithium battery management chips is mainly due to the good progress made in the domestic substitution of brand mobile phones and TWS headphones. The various performances of the products have been recognized by customers, and they are further developing on the road to domestic substitution; power lithium battery management chips are mostly used in electric bicycles, sweeping robots, power tools, etc.; lithium battery management chips for laptops have been produced in small quantities for large brand customers, and will be promoted horizontally this year. The company's lithium battery management chip products have gradually entered the original equipment market from the aftermarket.

Zhongying Electronics also mentioned that the company has been preparing for automotive electronics related technologies for a long time, mainly developing the body control MCU part. The company currently has accumulated chip-related technologies such as air conditioning control, variable frequency motor control, and lithium battery management. Each product line can also be extended to automotive electronics technology in the long run.