MediaTek: Unaffected by Apple Qualcomm, the three major product lines continue to grow steadily

  MediaTek held a financial report on April 30. CEO Li Lixing responded that Apple and Qualcomm reconciliation had no impact on MediaTek. MediaTek's 5G products have solid strength and are optimistic that the three major product lines will grow steadily and are expected to drive the second quarter revenue. The season increased by 13-21%.

Looking ahead, Cai Lixing estimates that the three major product lines, including growth, maturity and mobile computing, will lead to a 13-21% increase in the second quarter of the combined revenue season, reaching NT$596-638 billion. Under the unit), the gross profit margin is estimated at 40.5%, plus or minus 1.5 percentage points, and the operating profit rate is about 32%, plus or minus 2 percentage points. In the second quarter, the new mobile phone products in the Chinese mainland market were launched, and the P90 cut into the middle and high-end mobile phone market in the land system. In addition, the product portfolio continued to benefit from the DRAM price drop and the higher unit price of new products. The gross profit margin is expected to increase slightly.

Recently, Apple and Qualcomm reconciled, the market worried that Qualcomm had a negative impact on MediaTek. Cai Lixing believed that there was no impact on MediaTek. He also pointed out that the 5G market is developing strongly and there are many competitors, but MediaTek’s ability and product positioning for its own 5G products. , specifications, user experience, etc. are very confident. He stressed that MediaTek's 5G products have a solid level and I believe customers will have a clear assessment.

Cai Lixing said that MediaTek's three major product lines accounted for a very large proportion of revenue in the first quarter, such as IoT, power management chips and special application chips (ASIC), which accounted for 30% to 35%, and compared with the same period last year. Have good growth momentum, and the forecast can be extended to the second season. Product lines such as smart homes account for about 32% to 37%, and it is expected that the second quarter of this product line is expected to rebound moderately. He added that the second quarter mobile computing platform and growth products are expected to grow by 2 digits, and smart products will also have seasonal growth.

Cai Lixing pointed out that in the first quarter, a number of products using the P70 processor have been launched, and it is expected to be sustainable in the second quarter. The terminal products using the P90 processor will be released in the second quarter. It is expected to continue until the second half. While MediaTek is actively deploying 5G, Cai Lixing said that the first 5G system single-chip (SoC) will be launched by the end of this year. It is estimated that the terminal products will be available in the first half of 2020, and MediaTek will launch millimeter-wave products in 2020.

Due to the seasonal demand adjustment of various consumer electronics, MediaTek's consolidated revenue for the first quarter was 52.722 billion yuan, a decrease of 13.4%, but an increase of 6.18% over the same period of last year. However, the gross profit margin, in addition to the DRAM price drop, made the TV product line gross profit. The product line product portfolio of mobile devices and ASICs improved. In the first quarter, the company achieved a target of 40% internal gross profit margin, reaching 40.7%, a slight increase of 1.8 percentage points from the previous quarter and 2.3 percentage points over the same period last year. . The net profit after tax in the single quarter was 3.416 billion yuan, which was the lowest in the past four quarters, with a surplus of 2.17 yuan per share.