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China Fund News reporter Niu Siruo

The semiconductor industry is recovering, and many semiconductor companies at home and abroad have recently delivered impressive performance reports. On July 15, another semiconductor listed company released an announcement of expected performance increase. Changchuan Technology disclosed in the announcement that the company's net profit is expected to increase by 876.62% to 1023.12% year-on-year, achieving a sharp increase in net profit.

Industry insiders said that in 2024, with the weak recovery of the global economy and the arrival of the inventory replenishment cycle, the semiconductor industry has gradually shown signs of recovery.

Net profit is expected to increase by more than 10 times

On July 15, Changchuan Technology issued an announcement stating that its semi-annual net profit in 2024 is expected to be 200 million to 230 million yuan, a year-on-year increase of 876.62% to 1023.12%; the non-net profit is 190 million to 220 million yuan, a year-on-year increase of 324.14% to 359.53%.

Changchuan Technology mainly provides testing equipment for integrated circuit packaging and testing companies, wafer manufacturing companies, chip design companies, etc. At present, the company's main sales products are testing machines, sorting machines, automation equipment and AOI optical inspection equipment.

Regarding the reasons for the performance growth, Changchuan Technology explained that during the reporting period, the integrated circuit industry as a whole recovered moderately, customer demand in the segmented fields increased significantly, the company's product coverage in the integrated circuit testing field continued to expand, market share continued to rise steadily, and operating income increased significantly compared with the same period last year.

In addition, Changchuan Technology stated that the company continued to focus on investment in research and development of high-end equipment. As the company's revenue scale continued to expand, the scale effect gradually emerged; at the same time, the company's operational management level was effectively improved, and the expense rate level tended to stabilize, resulting in an increase in net profit attributable to shareholders of listed companies.

The industry is gradually recovering

Many companies have good performance forecasts

As the semi-annual report window opens, according to statistics from reporters, many semiconductor industry listed companies such as Weilan Technology, Lanqi Technology, Rockchip, Hengxin Technology, and BIWIN Storage have announced that their 2024 semi-annual performance will double.

Specifically, Will Semiconductor expects its net profit to increase by 754.11% to 819.42% year-on-year, Lanqi Technology expects its net profit to increase by 612.73% to 661.59% year-on-year, BIWIN Memory expects its net profit to increase by 194.44% to 211.31% year-on-year, and Nanxin Technology expects its net profit to increase by 101.28% to 119.16% year-on-year. The performance growth of all of them exceeded 100%.

It is worth noting that many semiconductor companies that have released performance forecasts have mentioned performance growth factors such as "market demand recovery", "increase in downstream customer demand", "gradual recovery of product gross profit margin", and "new products have begun to be shipped in scale". From the descriptions in the announcements of many companies, it can be seen that the clarion call for the recovery of the semiconductor industry has been sounded.

Industry insiders said that new scenarios and new applications such as smart cars and artificial intelligence will boost the overall demand for semiconductors, so demand in the semiconductor industry will still show a positive growth trend in the medium and long term.

According to data from the Semiconductor Industry Association (SIA), global semiconductor industry sales reached US$49.1 billion in May 2024, a year-on-year increase of 19.3% from US$41.2 billion in May 2023 and a month-on-month increase of 4.1% from US$47.2 billion in April 2024.

Lianshuo Securities believes that the AI ​​wave is still the main driving force for the recovery of the semiconductor industry. The weak recovery of the product side is reflected in the improvement of the manufacturing side. The utilization rate of manufacturing and packaging and testing continues to remain high, which is logical for both volume and price to rise.

CITIC Securities Research and Analysis stated that the scale of the global semiconductor equipment market will continue to increase from 2024 to 2025, among which the Chinese mainland market will lead the world. There is still a large gap in domestic semiconductor manufacturing capacity, and there is still much room for improvement in the localization rate of equipment. It is expected that orders for domestic equipment companies will increase rapidly in the next 2 to 3 years.

Editor: Joey

Reviewer: Chen Siyang

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