Gross profit margin straight down 6

Qualcomm's bargain-hunting price is sticking to the market, and MediaTek's (2454) mobile phone chip gross profit plummeted. The fourth-quarter earnings report was not as good as market expectations, triggering Bank of America Merrill Lynch, Goldman Sachs, Deutsche, Citigroup, Morgan Stanley, JP Morgan Chase and others. A number of foreign investors jointly planned to make profit forecasts this year next year. Merrill Lynch also lowered the ratings until neutral, and Citi’s target price fell to the lowest of 168 yuan.

MediaTek said yesterday that it will repair this year's smart phone chip shipment target to 50 million, but last year's fourth quarter earnings report as the market expected, foreign analysts questioned, Qualcomm price fixed fixed market share, resulting in MediaTek ASP (Average Sales Price, The average selling price has plummeted, and the gross profit margin has plummeted. This year's downward pressure remains significant.

The average sales price plummeted from Merrill, JP Morgan, Deutsche, Goldman Sachs, Citigroup, and Morgan Stanley to a number of foreign brokerage firms, and it is expected that profit reductions will range from 2% to 23% for the next two years. Germany and Germany reduced the prices by 15% and 23%, respectively. Citigroup's estimated net income per share after tax was 11.2 and 11.41 yuan in this year and the next, and the target price dropped from 185 yuan to 168 yuan, the lowest. Merrill Lynch lowered the rating to neutral.

Merrill Lynch declined to wait until Daniel Heyler, the principal analyst of Neutral Merrill Lynch, pointed out that the high price of Qualcomm was fierce and the price of foundry prices was stable. MediaTek suffered from an enemies and its revenue forecast for the first quarter was reduced by 10 to 15%. It is higher than the expected 0-5%, and the gross margin decline is also larger than expected.

According to Zhang Kaiwei, Citigroup's downstream hardware analyst in the Asia-Pacific region, MediaTek shipments of smart phone chips in the third quarter of last year were about 100 to 2 million units, and the industry’s net profit was 3.7 billion yuan, operating profit rate was 15.8%, and the first quarter of this year's financial results Display, shipments of 800 to 10 million, the industry's net profit is only 2.2 billion, indicating that ASP and gross margins fell really amazing.

Xie Qingjiang, general manager of MediaTek, previously stated that the gross margin of smart phone wafers is about 55%, which was changed at yesterday's meeting and is currently only slightly higher than the overall average of about 45%.

The market is shrinking and challenging The tech industry analyst Zhang Xingyi said that the main reason is that MediaTek intends to clear out the previous MT6573 product before the launch of the new MT6575 chip at the end of the first quarter, resulting in a sharp drop in gross margin. However, she believes that the worst case of MediaTek has already passed. Only the fierce competition from Qualcomm, the rapid shrinkage of the 2G chip market and the appreciation of the New Taiwan dollar will be filled with infinite challenges.

According to Guo Yanlin, an analyst at JPMorgan Chase Technology, Qualcomm's low-end products such as the 7225A and 7227A have a very high bargaining price, but MediaTek's equivalent chips MT6573 and MT6575 outperform Qualcomm and approach their 8x55 mid-range products, and the telecom operators Subsidies help, and still have great confidence in MediaTek.