MediaTek recently held a financial briefing, revealing that the company's gross profit margin and net profit margin for the fourth quarter of last year fell below 40% and 10% respectively, marking new lows. The net profit margin further dropped by 7.2 percentage points in the first quarter, catching the market off guard. In the single quarter, the net profit per share was 2.83 yuan, down from its previous high of 15 yuan. Last year’s full-year net profit was 16.6 yuan, the lowest in three years.
Looking ahead, MediaTek expects smartphone chip shipments to remain flat or slightly better than the previous quarter, but revenue is projected to decline by 7% to 15% on a quarterly basis. The gross profit margin is expected to be between 35% and 40%, making it difficult to exceed 40% again soon. However, the company anticipates annual revenue growth of over 10%. Notably, MediaTek rarely provided annual shipment targets for key products like smartphone chips during the meeting.
MediaTek’s stock price fell by 7.5 yuan yesterday, closing at 210 yuan, with 2,743 foreign short positions. Given the weak outlook for the previous quarter and seasonal trends, investors are concerned about whether the stock can maintain the 200-yuan level today.
Xie Qingjiang, Vice Chairman and Chairman of MediaTek, acknowledged that market uncertainty remains high, so the company will not provide annual shipment forecasts. Instead, they plan to focus on improving product mix and reducing costs, with operating expenses expected to increase by only 3% to 5%.
In its latest earnings report, MediaTek reported that Q4 revenue reached 61.713 billion yuan, up 8.3% quarter-over-quarter, hitting a record high. However, the gross profit margin and operating net profit margin dropped to 38.5% and 6.1%, respectively—both significantly lower than expectations.
While the market had anticipated that MediaTek’s gross margin and operating net profit margin might not meet the previous year’s levels of 40% and 10%, the actual numbers still surprised many, especially the net profit margin falling below 7%, a drop of 7.2 percentage points from the previous quarter and 12 percentage points from the same period last year.
Looking forward, Xie Qingjiang noted that the reduced number of working days and slower revenue growth, along with the New Taiwan dollar weakening against the U.S. dollar (at 33.5), led to a revised revenue forecast for this quarter, now expected to range between 52.5 billion and 57.4 billion yuan—a decrease of 7% to 15% compared to the previous quarter. Price pressures remain significant, with the gross margin estimated to fall between 37% and 40%, and the expense ratio—including employee dividends—expected to be around 28% to 32%.
For the net profit margin, the current quarter is expected to range between 7.86% and 10.51%, still below 10% but an improvement from the previous quarter. The net profit per share is expected to fall between 2.48 yuan and 3.03 yuan. Smartphone chip shipments for the first quarter are estimated to be between 100 million and 110 million units, roughly in line with the previous quarter, with a slight chance of improvement.
Figure / Economic Daily News
Figure / Economic Daily News
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