半导体业务：公司半导体单三季度收入为38.31 亿元，环比增长5.86%，毛利率为40.5%，同比提升2.8 个pct，环比提升1.8 个pct，单三季度实现净利润6.66 亿元，环比增长18.92%。分业务领域来看，公司半导体业务收入在汽车及工业与电力领域仍然保持稳健增长，消费电子等领域环比改善较快。Description of the event
On October 25, 2024, Wingtech released its 2024 three-quarter report. During the reporting period, the company achieved operating income of 53.161 billion yuan, a year-on-year increase of 19.70%; net profit to mother was 0.415 billion yuan, a year-on-year decrease of 80.26%; net profit after deduction was 0.071 billion yuan, a year-on-year decrease of 96.40%. Looking at the third quarter of a single quarter, the company achieved operating income of 19.571 billion yuan, a year-on-year increase of 28.71%, a year-on-year net profit of 0.274 billion yuan, a year-on-year decrease of 67.69%, and net profit after deducting 0.2 billion yuan, a year-on-year decrease of 75.15%.
Incident comments
Semiconductor business: The company's semiconductor revenue for the third quarter was 3.831 billion yuan, up 5.86% month-on-month, gross margin was 40.5%, up 2.8 pcts year-on-year, up 1.8 pcts month-on-month, and achieved net profit of 0.666 billion yuan in the third quarter, up 18.92% month-on-month. By business area, the company's semiconductor business revenue continued to grow steadily in the automotive, industrial and power sectors, and the consumer electronics sector improved rapidly from month to month.
ODM business: The company achieved revenue of 15.73 billion yuan in the third quarter, up 45.58% year on year, up 14.79% month on month, gross margin of 3.8%, up 1.8 pct month on month. ODM was still in a loss state in the third quarter. The net loss for the third quarter was 0.357 billion yuan, and the month-on-month loss narrowed, including interest expenses on convertible bonds of 0.108 billion yuan. If the financial expenses of convertible bonds and the impact of exchange losses are excluded, the ODM business significantly reduced losses in the third quarter. In the third quarter, the company achieved improvements in ODM business operations through multiple measures: 1) participating in high-ASP products and actively promoting new customer projects; 2) actively optimizing upstream and downstream to increase product gross margin by introducing new suppliers and customer business terms into effect; 3) strengthening internal management, reducing costs and increasing efficiency, and reducing cost rates.
The company's endogenous+epitaxial strategy continues to improve the business layout, and the semiconductor+ODM+ optical module currently formed has a good synergy effect. The automotive electronics sector acquired Anse and quickly became the global leader in automotive power devices. In the future, along with the gradual penetration of automobile electrification and intelligence, the power device market space will be broad. In terms of semiconductor business, from a long-term perspective, trends such as electrification, digitalization, automation, and green energy will still drive the growth of the semiconductor market, and AI development will accelerate the growth of the semiconductor market; in the ODM business, facing new opportunities in product technology upgrades and switching cycles brought by AI, the company has formulated a clear AI product technology roadmap to actively cooperate with customers to popularize artificial intelligence in mobile phones, tablets, laptops, IoT, automotive electronics, etc. We expect the company's EPS for 2024-2026 to be 0.80, 1.92, and 2.60 yuan respectively, maintaining the company's “buy” rating.
Risk warning
1. The boom in power semiconductors falls short of expectations;
2. Consumer electronics recovery falls short of expectations.
