Net profit soared several times! Domestic packaging and testing factories are in good shape

Recently, packaging and testing manufacturers such as Changdian Technology, Tongfu Microelectronics, Tianshui Huatian, and Jingfang Technology have successively disclosed their first quarter reports, and the profits of each packaging and testing manufacturer have improved significantly compared with the previous quarter. Both revenue and profit of Changdian Technology have reached a new high in the first quarter of the past five years; although Tongfu Microelectronics is still losing money, the loss has narrowed significantly compared with the previous year; Tianshui Huatian's net profit rose by 276.13% year-on-year; It increased 17 times year-on-year.

1. Changdian Technology’s first quarter financial report

Jiangsu Changdian Technology Co., Ltd. is a well-known discrete device manufacturer in China, an integrated circuit packaging production base, one of the top 100 electronics companies in China, a national key high-tech enterprise and one of the top ten industries with independent innovation capabilities in China.

In the first quarter, JCET achieved revenue of 5.708 billion yuan, a year-on-year increase of 26.43%; net profit attributable to the parent was 134 million yuan, a loss of 46.5168 million yuan in the same period last year. Both revenue and profit have reached a new high in the first quarter of the past five years.

The substantial increase in operating income and net profit of JCET is mainly due to the change of management at JCET in mid-2019. After the new management took over, they integrated the company's structure and business, increased revenue and reduced expenditure, and actively expanded target customers. Capacity utilization At the same time, STATS ChipPAC, which has a large loss, has been streamlined, and its Singapore factory has been adjusted to a testing center. While ensuring that STATS ChipPAC’s annual revenue remains basically unchanged, the year-on-year loss of STATS ChipPAC has been reduced by US$ 220 million, which has greatly reduced Company burden.

2. Tongfu Microelectronics’ first quarter financial report

Nantong Fujitsu Microelectronics Co., Ltd. was established on February 4, 1994 in Nantong, Jiangsu. It is a national and provincial high-tech enterprise famous for its research on semiconductors. A Sino-foreign joint venture limited company established by the overall change of Nantong Fujitsu Microelectronics Co., Ltd.

In the first quarter, Tongfu Microelectronics achieved operating income of 2.166 billion yuan, a year-on-year increase of 31.01%. The net loss attributable to shareholders of listed companies was 11.7283 million yuan.

Tongfu Microelectronics stated in its financial report that the recovery in demand drove revenue growth in the first quarter, but the new crown pneumonia epidemic had a greater impact on the company's production and operation activities, resulting in the failure to turn losses into profits as planned in the first quarter.

According to analysis, the growth in demand for Tongfu Microelectronics benefits from the rapid increase in the market share of AMD Ryzen and Radeon products. AMD is an important customer of Tongfu Microelectronics. At present, more than 90% of AMD's CPU chips are packaged and tested by the company. Tongfu Chaowei Suzhou Factory and Penang Factory provide AMD with packaging and testing services for 7-nanometer high-end products. From the 2020 Q1 financial report released by AMD on April 28, it can be seen that AMD’s revenue in the first quarter was US$1.786 billion, a year-on-year increase of 40.41%. The revenue in the first quarter increased rapidly year-on-year, and the growth momentum mainly came from the rapid increase in the market share of Ryzen and Radeon products. . It is reported that in 2020, AMD Zen 3 architecture CPU, AMD RDNA 2 architecture GPU and other new products will be launched one after another. With the release of AMD products in the future, Tongfu Microelectronics, as AMD's core packaging and testing plant, will further increase its profitability.

3. Huatian Technology’s first quarter financial report

Huatian Technology was established on November 12, 2003 by Tianshui Huatian Microelectronics Co., Ltd., Gansu Electric Power Construction Investment and Development Corporation, Hangzhou Silan Microelectronics Co., Ltd., Hangzhou Youwang Electronics Co., Ltd., natural persons Yang Guozhong and Ge Zhigang, Shanghai Belling Co., Ltd. and Wuxi Silicon Power Microelectronics Co., Ltd. signed the "Sponsor Agreement", unanimously agreeing to jointly initiate the establishment of Tianshui Huatian Technology Co., Ltd.

The revenue of Huatian Technology in the first quarter was 1.692 billion yuan, a year-on-year decrease of 1.12%; the net profit attributable to the parent was 62.6553 million yuan, a year-on-year increase of 276.13%.

Huatian Technology stated in its financial report that the company's profit improvement was mainly due to full orders in the first quarter, adjustments to the product structure, an increase in overall gross profit margin compared with the same period last year, and an increase in exchange gains.

The company's full orders in the first quarter of 2020 were mainly due to the acceleration of domestic substitution of semiconductors and the increase in the penetration rate of mobile phone multi-cameras. The company's CIS production capacity was in short supply, and the revenue of Xi'an and Kunshan factories increased significantly from 19H2 onwards, driving net profit to increase. Among them, the net profit of the Xi'an plant in 19H2 was 112 million, a month-on-month increase of 273%, and the Kunshan plant's net profit in 19H2 was 17 million, a sharp turnaround from a month-on-month loss, and the company currently has a full order book.

In addition, the company's Nanjing factory has started equipment installation on March 8 and is expected to accelerate the Nanjing factory's production in 2020. At present, the company has completed technical reserves including 3D nand 16 layers, 5G PA, SAW/BAW filters, LPDDR4 and other products. It is expected that in 20 Nianhuatian Technology's profitability will further increase.

4. Jingfang Technology’s first quarter financial report

Suzhou Jingfang Semiconductor Technology Co., Ltd. has been focusing on developing innovative technologies to assist customers in implementing high-volume manufacturing of reliable, miniaturized, high-performance and cost-effective semiconductor CMOS image sensor packages.

Jingfang Technology achieved revenue of 191 million yuan in the first quarter of 2020, a year-on-year increase of 123.97%; net profit attributable to shareholders of listed companies was 62.1135 million yuan, a year-on-year increase of 1753.65%.

Jingfang Technology's revenue and net profit increased significantly this quarter compared with the same period last year. The main reason is that due to the low prosperity of the semiconductor industry in Q1 2019, the company's revenue and net profit were at a low level. Downstream demand began to explode in the second half of 2019, and the company's revenue and net profit began to show substantial growth.

The explosion of downstream demand has benefited from the gradual increase in the number of multiple cameras in mobile phones. Currently, low-end phones are equipped with three cameras, and high-end phones are equipped with four or even five cameras, which has become the mainstream of the industry. According to data from Qunzhi Consulting, the global mobile phone camera rankings in Q3 2019 Four cameras accounted for 22%, and three cameras accounted for 26%. Although the sales of mobile phones dropped due to the epidemic in the first quarter of 2020, the penetration of multi-cameras on mobile phones has still brought great benefits to Jingfang Technology, which is the global leader in CIS packaging and testing. achieved better performance.

5. 5G and multiple cameras on mobile phones drive continued growth in packaging and testing market demand

In recent years, domestic substitution has been the development trend of the semiconductor industry. Pan Xian, chief analyst of the electronics industry at Tianfeng Securities, said: "The impact of the epidemic is reflected in demand, and the epidemic in Japan and South Korea has brought new opportunities for domestic substitution."

In the short term, due to the spread of overseas epidemics, there is certain uncertainty in the demand for consumer electronics and other terminals. However, in the medium and long term, the trend of upgrading mobile phone cameras to multiple cameras will not change, and the trend of growing demand for CIS packaging and testing will not change. 5G The development of communication technology will still drive the overall demand for semiconductors. The localization of the semiconductor packaging industry will bring new growth opportunities to Huatian Technology.

In fact, not only Huatian Technology, but also Changdian Technology, Tongfu Microelectronics, Jingfang Technology, etc. will benefit from the demand for 5G communications and multiple cameras on mobile phones in the context of domestic substitution.

Although 5G terminal shipments are affected by the epidemic, the overall demand is still there, but the outbreak of demand is relatively delayed. 5G mobile phone chip module integration requirements are rising, the number of internal modules and ASP are increasing, and chip packaging, especially advanced SIP packaging, is welcoming new growth in the market.

Changdian Technology CEO Zheng Li stated in an article published on the company's official Weibo account on April 30 that the company has been deeply involved in the fields of advanced microsystem integration technologies such as system-level packaging and wafer-level packaging for many years. The outbreak of the 5G industry has created a new opportunity for Changdian Technology. Advanced technology and high-end production capacity provide a broad field of application.