40 listed companies, performance forecast more than 60% in the loss, the electronics industry in the end who is making money?
Time：2024-03-05 Reading：86
The electronics industry chain has experienced a sharp decline in the past two years, and even though consumer electronics has shown some signs of recovery in the second half of last year, the overall cycle reversal of the industry has not officially arrived.
Some time ago, ST and Texas Instruments have announced the performance of 2023, from the performance itself and the company's performance forecast for 2024, you can feel the current market demand is still weak. St's overall revenue and profit grew last year, mainly due to the growth of demand for automotive semiconductors in the first half of the year, but in the fourth quarter, both revenue and profit fell year-on-year, and operating profit even fell as much as 20.5%. Texas Instruments was affected by the analog chip price war and the slowdown in automotive chip demand, and 2023 revenue fell 12.5% year-on-year, and net profit fell 25%.
In fact, in Gartner's recently released 2023 global semiconductor manufacturer revenue ranking, the top 25 manufacturers combined revenue fell 14.1% year on year, in addition to Nvidia benefited from the outbreak of AI demand, revenue surged 56% year on year, most of the other manufacturers in the last year's revenue is declining. Recently, domestic listed companies have released 2023 performance forecasts, from the situation of overseas markets, it is likely to be predicted that losses will become the main theme of the domestic electronics industry last year. Of course, in a difficult market environment, there are still some segments or companies that have achieved outstanding performance. So looking back at 2023, who is making money in the electronics industry? What is the difference in the performance of the segments?
Increases and losses are a common phenomenon, and display and analog ics are the hardest hit areas
Recently announced performance forecast of listed companies in the electronics industry, from the perspective of loss, Vicinuo and Tianma Micro two display panel enterprises losses are more prominent, Vicinuo compared to last year's loss nearly doubled, the forecast loss of 3.98 billion yuan to 3.58 billion yuan.
In this regard, the demand for consumer electronics terminals was under pressure last year, AMOLED production capacity was further released, product prices fluctuated greatly, and industry profits were at a low level. In the fourth quarter, product sales revenue increased significantly quarter-on-quarter, and gross profit on product sales increased steadily, but operating income was affected by the overall pressure of the industry and price fluctuations throughout the year. After Tianma Micro successfully turned a profit in 2022, it failed to continue to maintain a profit in 2023, and the loss came back to near 2 billion yuan. Tianma Micro said that during the reporting period, based on the impact of the industry, the company's profit declined, the company's revenue accounted for a relatively high consumer display business, especially the average price of smart phone display products fell sharply, and profitability fell sharply year-on-year.
However, this situation has improved with the recovery of the smartphone market in the second half of the year, Tianma Micro said that the company's flexible AMOLED mobile phone display products shipments in the second half of the year increased significantly, and there has been significant progress in technological innovation, brand project penetration and other aspects. As a domestic display panel leader, BOE's profit in 2023 has also declined sharply, and it is expected to return to the mother's net profit of 2.3 billion to 2.5 billion yuan, down 67% to 70% compared with the same period in 2022. TCL Technology's display business suffered a big decline in 2022, and returned to the right track in 2023, its performance forecast said that the display business lost 3.425 billion yuan in the first half of the year, and the second half of the year is expected to achieve a net profit of 3.180 billion yuan to 3.450 billion yuan. For the recovery of profits in the second half of the year, TCL Technology said that the price of large-size panels began to repair and rise in March 2023, while small and medium-sized products began to show structural capacity shortages and product price increases in the third quarter, so the business performance was greatly improved in the second half of the year. On the other hand, among the six analog IC manufacturers in the statistics, five of them, including Naxin Micro, Shengbang shares, Sipu, Xidwei, and Jiehua Micro, are expected to significantly expand their losses in 2023 compared with the same period last year.
From the reasons for the change in performance, the whole is closely related to customer destocking, weak demand in the terminal market, and falling product prices, after all, even the performance of the industry leader Texas Instruments has declined in profit. In the market downturn cycle, domestic enterprises still need to maintain research and development expenditures, especially the development and certification of automotive products, resulting in a significant decline in the overall performance of analog IC manufacturers in 2023. But there are exceptions, Ai for electronic performance forecast, 2023 to turn a profit, revenue growth of more than 20%. Ai Wei Electronics said in the performance change note that in the second half of 2023, with the gradual recovery of market demand and the gradual optimization of customer inventory structure, downstream customer demand has increased. With the help of product iteration and performance and cost optimization, we achieved year-on-year growth in operating income and a record high number of sales. In the market down cycle, the impairment of original inventory is also a big reason for the loss. Ai Wei Electronics said that by actively optimizing the inventory structure, the reported ending inventory was reduced by about 20% compared with the same period last year, and ultimately reduced the impact of inventory price declines on net profit.
The consumer electronics market has recovered, and the profits of enterprises in the smart phone industry chain have soared
The recovery of the consumer electronics market can be felt from the performance of relevant industrial chain companies.
The performance of Longqi Technology and Huaqin technology, two of the three giants of smart phone ODM, is more similar, and the net profit is expected to decline by 8% in 2023. For the decline in turnover, Longqi Technology said that it is mainly caused by the overall smartphone market is still in a slow recovery stage and the previous high base, but the annual decline is expected to be significantly narrower than the change in January-June 2023 and the same period.
Compared with Longqi, Huaqin Technology's business is more extensive, thanks to the continuous breakthrough in the field of data center business, in 2023, the total revenue decline in the case of profit still maintained growth. In the first three quarters of last year, Huaqin's server business revenue increased 670% year on year, and laptop revenue also increased 17% year on year. In the field of smart phones, the "king of Africa" Transsion Holdings in 2023 performance is more brilliant, is expected to revenue 62.12 billion yuan, an increase of 33%, net profit is expected to nearly 5.5 billion yuan, an increase of more than 100%. The company said that by continuing to explore emerging markets and promote product upgrades, the overall shipments and sales revenue in 2023 increased; At the same time, benefiting from the upgrading of product structure and cost optimization, the overall gross profit margin has improved, and the corresponding gross profit has increased. Oufei Light, which was kicked out of the fruit chain in 2022, also successfully turned a profit in 2023. This is mainly due to the large number of orders brought about by the listing of Huawei Mate60 series in the second half of the year, after the news that Ofilang obtained most of the orders of Huawei Mate60 series rear camera, front camera and fingerprint module.
Two other important suppliers in the mobile phone industry chain, Lishun Precision and Lens Technology are also expected to achieve profit growth of about 20% in 2023. Licxun won OEM orders for a number of Apple products in 2023, including the iPhone15 Plus, and actively promoted the development of automotive electronics business, including cooperation with Chery, GAC and other Oems, to consolidate its core capabilities as a Tier1. In consumer electronics, communications, automotive and other fields, to create a complete industrial vertical integration closed loop. Lens Technology is in the mobile phone cover, actively layout smart headsets, photovoltaic, new energy vehicles and other fields. Lens Technology said that in 2023, with the strong support of customers, the company's two categories of consumer electronics and new energy vehicles will maintain a good development trend. By deepening the vertical and horizontal integration of the industrial chain, increasing R&D investment and technology reserves, optimizing the concentration and collaborative innovation mode, while steadily carrying out forward-looking and basic research, accelerating the development of new technologies, new processes and new materials, and actively exploring new fields, the share of structural parts has been steadily increased, and the business of intelligent terminal machines and components has grown significantly and promoted each other.
At the same time, the company further promotes cost reduction and efficiency, improves the level of automation, improves capacity utilization, improves the yield rate, improves man-machine efficiency, and optimizes various cost expenditures, so that the company's comprehensive operating costs are further reduced and operating efficiency is further improved. As the largest proportion of consumer electronics products, smart phones have indeed recovered from the performance of relevant industrial chain enterprises in 2023. However, from the perspective of upstream chip products, the current consumer chip products due to inventory, market cycle and other reasons, the price is still at a low level, so the winter of upstream chip companies may take some time to pass.
