Tongfu Microelectronics: Net profit in the first three quarters was 703 million yuan, up 168.56% year-on-year

On October 29, Tongfu Microelectronics disclosed its third-quarter report, achieving total operating revenue of 11.204 billion yuan in the first three quarters of 2021, a year-on-year increase of 51%; achieving net profit attributable to shareholders of 703 million yuan, a year-on-year increase of 168.56%; and earnings per share of 0.53 yuan.

Among them, the company achieved operating income of 4.114 billion yuan in the third quarter, a year-on-year increase of 49.6%. The company achieved a net profit of 302 million yuan attributable to shareholders of the listed company, a year-on-year increase of 101.03%. The company achieved basic earnings per share of 0.23 yuan, a year-on-year increase of 76.92%.

It is reported that in the first half of 2021, Tongfu Microelectronics achieved operating income of 7.089 billion yuan, a year-on-year increase of 51.82%, and net profit of 412 million yuan, a year-on-year increase of 219.13%. Both revenue and profit hit historical highs.

From the perspective of the industry as a whole, the recurrence of the epidemic in Southeast Asia since the beginning of the year has more or less affected the labor-intensive packaging and testing process. According to data, Tongfu Microelectronics' factory in Malaysia mainly undertakes AMD chip packaging and testing business, and mainly for advanced packaging products.

Jiang Shu, the company's deputy general manager and secretary of the board of directors, pointed out that in response to this situation, the company has taken capacity control measures to transfer some local orders to domestic factories. As the epidemic was gradually brought under control in the third quarter, the situation became more stable. Regarding the uncertainty of the epidemic, the company does not rule out the possibility of flexibly adjusting production capacity according to customer needs in the future, which will not affect the company's overall business.

In addition, the tight supply of upstream packaging materials, including lead frames and substrates, has also caused investors to worry. He admitted that the current supply of upstream materials is still in a relatively tight state. Regarding the impact of material price increases on the company, Jiang Shu said that he is adjusting the cost structure with customers.