MediaTek, a major IC design company, held a briefing on the 26th and announced its third-quarter financial report. The revenue amounted to NT$131.074 billion, an increase of 4.3% from the second quarter and 34.7% from the same period in 2020, with a gross profit margin of 46.7% , an increase of 0.5 percentage points from the second quarter, an increase of 2.5 percentage points from the same period in 2020, and a net profit margin of 21.6%, a slight decrease of 0.4 percentage points from the second quarter, and an increase of 7.9 percentage points from the same period in 2020. Net profit after tax 28.361 billion yuan, an increase of 2.8% from the second quarter, an increase of 112% from the same period in 2020, and EPS per share was 17.92 yuan.
Overall, driven by product portfolio optimization and price increases, MediaTek’s revenue in the first three quarters of 2020 reached NT$364.761 billion, an increase of 61.58% over the same period in 2020, and its gross profit margin was 46%, also compared with 2020. The same period increased by 2.29 percentage points, the net profit rate was 22.33%, an increase of 10.74 percentage points over the same period in 2020, the net profit after tax was 81.444 billion yuan, an increase of 211% over the same period in 2020, and EPS per share came to NT$51.57.
As for the forecast for the fourth quarter of 2021, MediaTek expects that based on the exchange rate of US$1 to NT$28, the estimated revenue will fall in the range of 120.6 billion to 131.1 billion yuan, which is roughly flat compared to the third quarter Compared with the same period in 2020, it will maintain an increase of 25% to 36%. In the fourth quarter, the gross profit margin is estimated to be 49% to 46%. In 2021, the annual revenue will increase by 52% year-on-year, and the gross profit margin will also reach 46.4%.
A previous research report by foreign investors in the US pointed out that MediaTek’s sales fell due to worries about the rising inventory of 5G smartphones and TVs. However, due to strong sales of 4G chips and a good Wi-Fi 6 market, revenue in the fourth quarter is expected to increase slightly compared to the third quarter 5%, the market expects to drive the gross profit margin to maintain at 46%, reiterate MediaTek's investment rating of "better than and ", and the target price is NT$1,280 per share. Compared with MediaTek's forecast, there is a gap in revenue, but the gross profit margin is in line with expectations.
(Source of the first picture: Photo by Science and Technology News)
