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 dropped below 40% and 10% respectively—both hitting new lows. The net profit margin further declined by 7.2 percentage points in the first quarter, catching the market off guard. In that single quarter, the net profit per share was 2.83 yuan, marking a significant drop from its previous high of 15 yuan. For the full year of last year, the net profit totaled 16.6 yuan, which was the lowest in three years.
Looking ahead to this quarter, MediaTek expects smartphone chip shipments to remain flat or slightly better than the previous quarter. However, revenue is projected to decrease by 7% to 15% compared to the previous quarter. The gross profit margin is expected to stay between 35% and 40%, with no immediate sign of returning above 40%. Despite this, the company anticipates annual revenue growth of over 10%. Notably, MediaTek rarely sets annual shipment targets for key products like smartphone chips.
On the stock market, MediaTek’s shares fell by 7.5 yuan to 210 yuan, with foreign investors selling heavily, pushing the price down to 2,743. Given the weak outlook for both the previous quarter and the upcoming season, the market is closely watching whether the stock can maintain the 200-yuan level today.
Xie Qingjiang, vice chairman and CEO of MediaTek, acknowledged that market uncertainty remains high and that the company will not provide annual shipment forecasts for key products. However, he emphasized efforts to improve product mix and reduce costs, with operating expenses expected to rise by only 3% to 5%.
In its latest earnings report, MediaTek announced that revenue for the fourth quarter reached 61.713 billion yuan, up 8.3% quarter-over-quarter, setting a new high. However, the gross profit margin and operating net profit margin dropped to 38.5% and 6.1%, respectively—far below expectations. While the market had anticipated margins below 40% and 10%, the actual numbers still surprised many, especially the net profit margin falling below 7%, down from 14% in the previous quarter and 18.8% a year ago. That’s a drop of 7.2 and 12 percentage points, respectively.
Looking forward, Xie Qingjiang noted that the shorter number of working days and slower revenue growth have impacted performance. The exchange rate of the New Taiwan dollar against the U.S. dollar stood at 33.5. Revenue for this quarter is now forecasted to range between 52.5 billion and 57.4 billion yuan, representing a quarterly decline of 7% to 15%. Price pressures remain strong, with the gross profit margin expected to fall between 37% and 40%. The expense ratio, including employee dividends, is estimated at 28% to 32%.
For the net profit margin, the current estimate ranges from 7.86% to 10.51%, still below 10%, but an improvement from the previous quarter. The net profit per share is expected to be between 2.48 yuan and 3.03 yuan. Smartphone chip shipments are projected to be around 100 million to 110 million units, roughly in line with the previous quarter, with a slight chance of growth.
*Figure / Economic Daily News*
*Figure / Economic Daily News*
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