Hu Zhengda, chairman and general manager of Touch Chip Factory Duntai, said that the growth rate of the smartphone market in mainland China next year is expected to exceed 30%, and the global tablet computer growth rate can also reach 70% to 80%. Applications such as "from scratch" in electronics, medical care, home appliances, etc. are optimistic that the touch market still has a golden growth period of ten years.
Duntai touch chip once won 80% market share (now 50%) in the mainland smartphone market, including orders from local brands such as ZTE and Huawei, and was hailed by the market as "Mainland China's touch king". Hu Zhengda is optimistic about the growth of the touch market in the next decade, and also reminds the industry that the pressure for competition is still high, and the average price and gross profit margin of products will continue to fall next year.
Duntai paid a full-year net profit after tax of more than 38 yuan per share last year, and will return to Taiwan for the first listing at 250 yuan per share on November 8th, and a pre-listing legal seminar will be held the day after tomorrow (23rd) . Hu Zhengda recently accepted an interview with this newspaper, emphasizing that Duntai will maintain the same growth rate as the market. Next year, it will launch integrated chips of touch IC and driver IC to change the market segment and strive to earn more than one share capital every year. The following is the summary of the interview:
Q: How do you see the future of the touch market? How long will the gold growth period last?
A: The smartphone market will continue to grow next year, but it will not grow as fast as it did in previous years. For example, the smartphone market in mainland China tripled in 2012, and it has roughly doubled this year. It can maintain more than 30% next year, and there is still double-digit growth. The growth rate of the tablet computer will be higher, because it is not as large as a mobile phone, and it is a relatively new market. The global growth rate next year may reach 70% to 80%.
In addition, touch control is also used in automotive electronics, medical, sports, home appliances and other communication applications. The fields that have not been used for touch control are being converted. These are "from scratch" business opportunities that drive the entire industry. Continue to develop.
I am very confident about the future of the touch market, which will penetrate into every area of ​​life. For example, if you want to drive a car, you start to use touch when you get in the car. You also use touch when you enter the office. You still use touch when you go home and use home appliances. Even touch is used for sports. Touch will spread in everyone's life.
Now when four or five-year-old children catch an item, they will touch it and they will want to control it. This will become a habit. I think that the growth of the touch market can continue for another ten years.
Question: Hundreds of touch chip and touch panel manufacturers contend. How do you see the development and technological trends of this wave of shock?
A: When the panel factory gradually converges, the industry can stabilize. In the past few years, panel makers have been very profitable. Everyone rushed in to do this business. There are more than 100 panel makers in mainland China alone, which is terrible.
When the industry gradually converges, it will bring the industry back to a stable state, which may happen within one to two years.
This situation is the same for touch IC manufacturers. Under this trend, Duntai will definitely exist. Not only will we exist, but we will also win. I am very confident in our products because we are constantly innovating and constantly have new products and technologies, which is very important.
From the perspective of industry technology trends, I think in-cell (embedded) will become mainstream in 2015. The technical threshold involved in this product is indeed relatively high. It is difficult for other peers to catch up quickly. Like Apple for so long, it is still a bit Struggling, we are very confident about technological breakthroughs.
However, in-cell shipments are not high next year, and the growth that can be seen next year is mainly on-cell (plug-in). Because the technical threshold is relatively low, the proportion of on-cell in the touch industry may be reached next year. 30%.
Mainland China accounts for 50%
Q: In the past three years, Duntai welcomed the high-speed growth period and won the throne of mainland touch control. What is the short-, medium- and long-term layout?
A: Our shipments have tripled on average for three consecutive years, but this will gradually converge. It is impossible to grow this way all the time. This year will not triple. After all, the scale has reached.
Our market share in the mainland has reached 50%. This is a healthy market share. Even if we go up, even customers will worry that it is unrealistic to talk about doubling, but this year's shipments can be more than 200 million. .
In the future, Duntai's growth will expand with the market and expand to international customers and non-mobile phones. I have no way to make financial predictions now, but if we look at the market, the mobile phone and tablet market will continue to grow, and we will start from scratch in the PC, which will be a favorable situation.
At present, mobile phone customers account for 85% of Duntai's revenue, and tablet customers account for 15%. Next year, mainland smartphones will grow another 30%, and tablet computers will grow 70% to 80%. Duntai will maintain the same growth rate as the market.
Duntai will maintain a market share of about 50% in mainland smartphones next year; in terms of the mainland tablet PC market, Duntai will account for more than 10% this year. This type of business will be the focus of efforts next year, hoping to achieve more than 20%.
In terms of personal computer (PC) applications, Duntai has just begun to enter the field. Duntai PC's full line of products are ready, not only all have passed the Win 8 certification, but also began to import the client design. The benefits can be seen in the second or third season next year at the earliest.
The future of wearable business opportunities is also the focus of Duntai. We are also expanding customers outside the mainland and actively contacting international customers. This part has already begun shipping, so it is not unfamiliar, but will strengthen the strength of international customers. Next year, we may see results first in markets such as Taiwan, South Korea, and the United States.
The outside world says that Duntai can earn three or four capitals a year. I think that is not a long-term sustainable situation. From the perspective of the company's managers, a company's annual net profit of 10 to 30 yuan per share is a good performance, which is our expectation.
Integrated product attack in-cell
Q: The pressure on ASP and gross profit margin of touch chip products is high. Will it be eased next year?
A: The pressure on ASP will be great next year. However, we will continue to increase shipments, reduce production costs, and will go to high-end new products, launch high-performance and large-size new products, there are many ways to improve ASP.
The decline in gross profit margin of this industry is an indisputable fact, and there may still be some decline next year. If Duntai's shipments can be made larger, and new products are added, it can offset the decline in gross profit margin and will strive to maintain more than 40%.
Q: Is there any integration plan for Duntai's product line or client?
Answer: Duntai will have a new product line next year, including LCD driver IC and other products. We have a panel factory that jointly develops in-cell products, which are on both sides of the strait. Both sides are strategic and technical alliances, mainly to prepare for future in-cell products, and will introduce integrated touch IC and driver IC chip.
This integrated product is a very important step, it is the general trend, and it will also be our core competitiveness in the short and medium term. In terms of product progress, stand-alone driver ICs are already being verified and will be released next year, and integrated chips will also be mass-produced next year, but when to see revenue contributions and results, it depends on market acceptance . I think the starting amount of in-cell will wait until 2015, but if it is not done in 2014, it will be too late.
Duntai integrates the driver IC by the role of the touch IC factory, and does not worry that the driver IC factory will launch products integrating the touch IC.
We are a professional production of Touch Screen manufacturers, touch products for many years of production, business and development experience.We are committed to providing customers with a variety of standard touch screen products, including: 4 Wire Resistive Touch Screen,5 Wire Resistive Touch Screen,Capacitive Touch Screen, Interactive Touch Foil , Infrared Touch Screen , Infrared Touch Frame .These products are widely used in industry,GPS,finance,medical care,transportation, electronic education and game entertainment and other fields.
Our product pictures shown below:
Touch Screen
Touch Screen Panel,LED Touch Screen,LCD Touch Screen,Industrial Touch Screen,Monitor Touch Screen,Advertising Touch Screen
ShenZhen GreenTouch Technology Co.,Ltd , https://www.bbstouch.com