MediaTek's financial report Cai Lixing said: 2019 revenue estimates are flat or slightly increased

  MediaTek held a financial report on January 30, which announced that its revenue for 2018 was NT$238 billion (the same unit), a slight decrease of 0.07% from the previous year, a gross profit margin of 38.5%, an annual increase of 2.9 percentage points, and a net profit after tax of 207.82. 100 million yuan, an annual decrease of 13.7%, after-tax earnings per share of 13.26 yuan, lower than the previous year's 15.56 yuan, a six-year low. Looking forward to the first quarter, CEO Li Lixing set the tone, "shipment growth is not easy"; annual revenue will be flat or slightly increased.

MediaTek's consolidated revenue for the fourth quarter was 60.892 billion yuan, down 9.2% from the previous quarter, with a gross margin of 38.9%, a quarterly increase of 0.4 percentage points, and a single quarter operating profit of 3.851 billion yuan, a 39% quarter-on-quarter, mainly due to a one-off period in the previous quarter. The dividend contribution contribution period is relatively high, the net profit after tax is 3.752 billion yuan, the quarter is reduced by 45.4%, the annual decrease is 63.1%, and the after-tax earnings per share is 2.42 yuan.

For the first quarter of the financial forecast, due to seasonal factors, coupled with channel inventory issues, MediaTek estimates that revenue will fall from 48.7 billion yuan to 53.6 billion yuan, quarterly reduction of about 12-20%, gross margin is falling at 38- 41%. As for the year-round operation direction, Cai Lixing is slightly conservative and expects the stalemate to remain flat or slightly increase.

It is worth noting that MediaTek will not announce shipments of smartphone chips and tablets this season, but stressed that mobile phone chip revenues should be flat or increased under the launch of new product specifications.

MediaTek's gross profit margin rose upwards last year, causing foreign investors to ask questions in the financial report. Cai Lixing said that the profit structure has improved significantly last year, and the gross profit margin continued to grow. The main reason is that the mobile phone chip products are much more competitive and the penetration rate is increasing. This year should continue. The annual gross profit margin is expected to go up step by step, with a target of 40%.

In the market situation of each region, Cai Lixing took the first quarter as an example. He said that in addition to the seasonal reduction factor, the slowdown in mainland market demand is also a factor. However, he said that the situation of mobile phone customers is not the same, and some stocks are more. But some are stable, overall, the mobile phone client orders are fairly stable.

In addition to the mainland China market, Cai Lixing also believes that although the North American market “does not speak strong”, it is still quite good; in addition, the mainland market is relatively saturated, but India will be a relatively fast growing region this year. Cai Lixing further said that MediaTek will actively develop the Indian market. In the second half of last year, it has actively developed products and software to enter the market. This year, the market share will also increase. The outside world is worried that the Indian market will be dominated by 4G-enabled mobile phones, and the gross profit margin may be affected. To be dragged, he explained that all of them were in the financial evaluation, "the gross profit problem is not big."

From the product point of view, MediaTek's mobile computing, mature and growth three product lines in the fourth quarter of last year, mobile platforms accounted for about 30% to 35% of revenue, Cai Lixing said that mobile phone market demand such as mobile phones last year Slow, but P60, P70, P22 and other new products are selling well, and there are also gains in major customers, helping to increase market share and improving gross profit margin.

In the growth product segment, revenue in the fourth quarter accounted for about 27% to 32%, of which IoT-related revenue accounted for about half, power management chips accounted for 20% to 25%, and both types of products grew to double positions. The number of kinetic energy will continue this year. As for ASIC, Cai Lixing said that the current revenue is still small, accounting for about 10% to 15%.

Mature products have been relatively hard last year, but as storage prices have fallen, costs will help this year. And the newly established smart family business group, and officially merged with Morningstar, combined with two-party technology, such as strengthening AI voice applications, and strive to maintain market leadership.

Summarizing this year's outlook, Cai Lixing believes that this year is a year in which new technologies and investments have begun to contribute revenue. The chips including 5G, 11ax, automotive electronics and commercial ASICs have laid a solid foundation. It is expected that ASICs from 5G will be in 2020. The proportion of vehicle electronic revenue will exceed 10%. And reiterated that MediaTek will continue to move toward the recovery track, and continue to focus on structural adjustments and optimize profitability to provide product value and multiple product lines as a strategy.