9 display-related companies released Q3 financial reports/forecasts, with profits increasing by up to 3 times

Recently, many companies have released performance announcements, let’s take a look.

Absen: Net profit in the first three quarters increased by 290.03%-294.26% year-on-year

Absen announced on October 10 that the net profit attributable to the parent company in the first three quarters is expected to be 112 million yuan-115 million yuan, a year-on-year increase of 290.03%-294.26%.

Due to the impact of the epidemic and economic downward pressure during the reporting period, operating income in the Chinese market declined year-on-year in 2021; however, with the full recovery of overseas markets, operating income in the international market in the first three quarters of 2022 increased by nearly 100% year-on-year in 2021; the implementation and implementation of the company's "domestic and internal offensive" strategy in 2022 provided guarantee for the overall stable growth of the company's performance in the uncertain external economic environment in 2022.

The company achieved a gross profit margin of approximately 31.46% in the first three quarters, a substantial increase of approximately 10.53% compared to 20.93% in 2021; changes in the sales structure in China and international markets, and the comprehensive recovery of the international market are the main reasons for the substantial increase in gross profit margin in the first three quarters; in addition, the company's operating income increased significantly year-on-year in the first three quarters of 2022, which reduced the factory's manufacturing expense rate, and economies of scale emerged, overallGross profit margin increased.

Dongshan Precision: Net profit in the third quarter increased by 25%-30% year-on-year

On October 12, Dongshan Precision announced that the net profit attributable to shareholders of listed companies in the first three quarters of 2022 is expected to be 1.538 billion yuan-1.568 billion, a year-on-year increase of 28.38%-30.86%; of which, the net profit attributable to shareholders of listed companies in the third quarter is 742 million-771 million yuan, a year-on-year increase of 25%-30%.

Regarding the changes in performance, Dongshan Precision pointed out that the company's core business achieved stable growth during the reporting period; the company increased its efforts to expand the new energy business, the research and development of new products and customer introduction were smooth, and sales revenue grew rapidly year-on-year. It is reported that the company's export business accounts for a large proportion. In the first half of 2022, the company's export sales accounted for nearly 80%. The appreciation of the US dollar will have a positive impact on the company's performance.

Previously, Dongshan Precision pointed out that the new energy industry is the industry that the company is currently focusing on expanding, and the needs of the industry have driven the company’s recent development.Revenue from new energy customers has grown rapidly in recent years. The growth of an emerging industry requires long-term patience, and the company is confident in the development of the new energy vehicle industry. The company will continue to strengthen the development of new products and new technologies to continuously meet customer needs.

TCL Technology: Net profit attributable to shareholders of listed companies in the first three quarters is 200-300 million yuan

On the evening of September 29, TCL Technology released an operating report for the first three quarters of 2022, stating that in the first three quarters of 2022, the company is expected to achieve operating income of 124.7 billion yuan to 126.7 billion yuan, net profit of 1.9 billion yuan to 2 billion yuan, and net profit attributable to shareholders of listed companies of 200 million yuan to 300 million yuan. The profit in the third quarter will improve quarter-on-quarter.

According to the 2022 semi-annual report released by TCL Technology, the company’s net profit attributable to the parent company in the first half of the year was 664 million yuan. However, the net profit attributable to the parent company in the third quarter was only expected to increase by 200-300 million yuan, which means that the net profit attributable to the parent company in the third quarter decreased by 364 million yuan to 464 million yuan.

Hisense: Net profit in the first three quarters increased by 100.02% year-on-year to 118.02%

On October 12, Hisense Video (600060) released a performance forecast for the first three quarters of 2022: It is expected to achieve a net profit attributable to the owners of the parent company of 474.99 million yuan to 517.73 million yuan in the third quarter of 2022. Compared with the same period last year, it will increase by 237.52 million yuan to 280.26 million yuan, a year-on-year increase of 100.02% to 118.02%.

The announcement shows that the performance forecast period is from January 1, 2022 to September 30, 2022. It is expected that the net profit attributable to the owners of the parent company after deducting non-recurring gains and losses in the third quarter of 2022 will be 420.52 million yuan to 453.49 million yuan. Compared with the same period last year, it will increase by 255.64 million yuan to 28,861 yuan.million, a year-on-year increase of 155.05% to 175.05%.

The main reason for the expected increase in performance in this period: the optimization of the competitive landscape and the strengthening of the leading position in the Chinese TV market. Technology upgrades and scene innovations continue to promote product structure upgrades and increase gross profit margins for display products. Brand upgrades and world-class event marketing continue to drive consumption upgrades and enhance global market competitiveness.

Northern Huachuang: Net profit in the first three quarters increased by 136.16% year-on-year to 172.62%

On October 11, chip company Northern Huachuang released its third-quarter performance forecast. In the first three quarters of 2022, the company is expected to achieve operating income of 9.444 billion yuan to 10.444 billion yuan, a year-on-year increase of 52.98% to 69.18%; net profit attributable to shareholders of listed companies is 1.555 billion yuan to 17.946 billion yuan, a year-on-year increase of 136.16% to 172.62%. In the third quarter of 2022, the company is expected to achieve operating income of 4 billion to 5 billion yuan, an increase of 55.94% to 94.93% compared with the same period last year.

North Huachuang said that in the first three quarters of 2022, the downstream market demand for the company's electronic process equipment and electronic components business is strong and orders are full. The company actively takes various measures to implementThe effective operation of current production and supply chains ensures timely delivery of customer orders, and the company's operating performance maintains sustained growth.

Samsung Electronics: Third-quarter profit fell 32% year-on-year

On October 7, Samsung Electronics released a preliminary performance report. The operating profit in the third quarter was 10.8 trillion won ($7.7 billion), a 32% decrease from 15.8 trillion won in the same period last year, which was the first year-on-year decline in the past three years. Third-quarter operating income rose 2.7% to 76 trillion won, but was lower than expected.

According to a survey by Yonhap Infomax, a financial data company of Yonhap News Agency, Samsung's operating profit in the third quarter was 8.3% lower than the average estimate. The company will release a detailed performance report on October 27.

Analysts said Samsung's chip profits have been affected by plummeting memory chip prices due to weak demand for consumer electronics and the impact of inflation, rising interest rates and the Russia-Ukraine conflict.

Innolux: Revenue in the third quarter decreased by 17.1% quarter-on-quarter

On the 8th, financial data from panel manufacturer Innolux showed that in September 2022, Innolux’s revenue was NT$17 billion (approximately 3.825 billion yuan), a month-on-month increase of 11.1% and a year-on-year decrease of 42.4%.

Innolux pointed out that the combined shipments of large-size panels in September totaled 9.23 million pieces, an increase from August 6.7%; combined shipments of small and medium-sized panels in September totaled 23.48 million pieces, an increase of 5.7% from August.

In the third quarter, Innolux's consolidated revenue was NT$48 billion, a decrease of 17.1% month-on-month and a decrease of 48.4% year-on-year; the combined shipments of large-size panels totaled 26.13 million pieces, a decrease of 19.5% from the second quarter shipment of 32.45 million pieces; the combined shipments of small and medium-sized panels totaled 68.66 million pieces, a decrease of 19.5% from the second quarter shipments. 84.27 million pieces, a decrease of 18.5%.

Previously, Innolux said at the conference that the panel industry has a chance to bottom out in the fourth quarter, but the inventory may have to wait until the first quarter of next year.

For comparison, Innolux’s revenue in August was NT$15.3 billion (approximately NT$3.442 billion)Yuan), a month-on-month decrease of 3% in July and a year-on-year decrease of 51.3%, hitting a new low in nearly 30 months.

Fucai: Revenue decreased by 13.4% in the first three quarters

On October 6, Fucai announced that Q3 revenue reached NT$6.684 billion (approximately RMB 1.5 billion), a quarterly decrease of 14% and an annual decrease of 35.2%, which was lower than the financial forecast. The cumulative revenue in the first three quarters reached NT$23 billion (approximately RMB 5.16 billion), an annual decrease of 13.4%.

Fucai said that weak consumer market demand affects shipments, which in turn affects third-quarter performance. The gross profit margin will be slightly reduced, but it will still be profitable.

In addition, Fucai’s capital expenditure this year will also be reduced from 8 billion yuan to 7 billion yuan, but it still regards Micro LED as a future growth momentum. It is expected that Micro LED will be under construction The new LED production capacity will be supplied to Jingdian in the future. Jingcheng will be responsible for small-size (AR/VR) products, while Jingdian will be responsible for large-size screens and other products.

Recently, Fucai revealed that it will expand to produce more than 10,000 pieces per month in 2025.inch production capacity, the cost of Micro LED will drop to 10% of the current cost structure in the future.

Zhending: Q3 consolidated revenue reached 11.2 billion yuan, a record high for the same period in previous years

Recently, printed circuit board manufacturer Zhending announced that its Q3 consolidated revenue reached NT$50.005 billion (approximately RMB 11.2 billion), a quarterly increase of 44.8% and an annual increase of 20.2%, setting a new high for the same period. The cumulative revenue for the first three quarters reached NT$118.45 billion (approximately RMB 26.57 billion), an annual increase of 20.2%.

Zhending said that driven by Apple’s new iPhone 14 sales and the traditional peak season, September and Q3Revenue simultaneously set a new high for the same period. Not only did the product portfolio continue to move towards a high-end, but capacity utilization, yield rate, and production efficiency were further improved.

Looking forward, Zhending said that the fourth quarter will be the peak of new product shipments for mobile phone and computer consumer customers. In addition, new automobile and server panel products will be put into mass production. With the simultaneous growth of various product lines, revenue is expected to grow quarter by quarter.

It is reported that Zhending has set a goal of capturing 10% of the global PCB market share by 2030. Under this goal, Zhending's new Qinhuangdao BT factory Q3 will start mass production this year. Huaian HDI factory and Shenzhen ABF will join next year. Kaohsiung Luzhu new factory will also start installation and proofing next year, and a new soft board factory will be expanded in 2024.

Judging from the above data, the development situation of most companies is still good, but some companies have reached a record low. It is recommended that each company should make mid- and long-term plans.