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Wingtech Technology: The Net Profit in The First Half of The Year is Expected to Be 1.6-1.8 Billion Yuan, with A Year-on-year Increase of 715.50% - 817.44%


Wingtech Technology (600745) released an announcement on the increase of semiannual performance in 2020 on the evening of July 19, saying that due to the rapid development of the company's performance, it is estimated that the companys net profit attributable to shareholders of in the first half of the year will be RMB 1.6 billion to RMB 1.8 billion, with a year-on-year increase of 715.50% to 817.44%; the expected net profit attributable to shareholders of listed companies after deducting non recurring profit and loss is 1.4 billion to 1.6 billion RMB, with a year-on-year increase of 910.43% to 1054.78%.


According to the announcement, the main reasons for the performance increase in the current period are, on the one hand, benefiting from the international layout of communication business and optimizing the customer structure, the domestic and international top brands clients shipment in 2020 has achieved a strong growth compared with the same period last year; on the other hand, in 2019 it has gained full control of Nexperia, and Nexperias performance in the first half year of 2020 has been included in the consolidation scope according to the shareholding ratio of 74.45%, resulting in a substantial increase in net profit.


Wingtech Technology said that in the first half of 2020, affected by the epidemic, the global mobile phone shipment fell by more than 10%. Because consumers are more sensitive to price, the medium and low-end cost-effective models provided by Wingtech Technology are more favored, and the shipment volume increases instead of falling. In addition, with the optimization of customer structure and the enhancement of the company's product competitiveness, the net profit of single product has increased significantly compared with that in 2019. Although Nexperia semiconductor, a subsidiary of Wingtech technology, has suffered a certain impact due to the decline of automobile sales, with the cooperation of Wingtech Technology, its development in the communication market is smooth and its share has increased significantly.


Wingtech Technology is the world's leading communication and semiconductor enterprise, it maintains deep cooperation with the world's major companies in mobile phone, PC, IOT, automobile and other fields. Wingtech Communication Co., Ltd. is the world's largest mobile phone ODM enterprise. Nexperia semiconductor was a European semiconductor company with a history of 60 years, formerly known as Royal Philips semiconductor standard products division. It maintains the leading position in the industry in the fields of diodes, transistors, ESD protection devices, logic ICs, MOSFETs and others, with a wide range of products used in mobile phone, PC, IOT, automobile and other fields.


As a high-capacity enterprise in the field of semiconductor basic components production, its products are widely used in all kinds of electronic design in the world. In particular, its gallium nitride (GaN) technology takes the lead in the world. Li Gang, an industry analyst at Sano, a research organization, believes that as the only global leading power device IDM manufacturer controlled by Chinese, Nexperia has a broad development space and is of great significance. With a revenue of 10.3 billion RMB in 2019, Nexperia semiconductor ranks first among domestic power semiconductor manufacturers. At present, the domestic market share is about 10% - 15%. It is estimated that the domestic power device market size is about 6 billion US dollars. Under the wave of domestic substitution, Nexperia semiconductor has a broad space for future development.


Pan min, chief analyst of Tianfeng securities electronics industry, believes that the 5G terminal orders of Wingtech Technology have increased significantly, and they are optimistic that 5G will enter the large-scale production period; automotive semiconductors will transfers from devices to modules, and the products are expected to start verification in the third quarter this year. He is optimistic about the growth of the company in the second half of the year, and continue to recommend the company. It is estimated that the net profit attributable to the company will be 4.207 billion yuan / 5.504 billion yuan / 7.139 billion yuan from 2020 to 2022 (considering 100% consolidation, without considering financial expenses and privatization amortization). Tianfeng is optimistic about the multi-directional extension of smart hardware and semiconductors from mobile phones to automobiles in the future.

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