2023-07-29 23:22 Economic Daily News Yang Jingchun
UMC KGI 31 Purchase 05 (047121)
Link target: UMC (2303)
7/28 closing price 47.05/+0.90 yuan
UMC recently announced a second downward revision to its revenue forecast at the law conference. It is expected that this year’s foundry revenue will decrease by 14% to 16% annually, and the inventory adjustment of the semiconductor industry will continue until the fourth quarter. UMC’s trend has been relatively weak since July. However, after the law conference, several foreign securities companies issued reports and still maintained “outperform” or “buy” investment ratings for UMC, believing that demand is still recovering slowly.
UMC KGI 31 Purchase 05 (047121)
Wang Shi, co-general manager of UMC, said that the performance report for the second quarter was in line with previous forecasts. The wafer shipments were the same as the previous quarter, the capacity utilization rate was 71%, and the revenue increased by 3.8% quarterly, mainly due to the optimization of the 12-inch product mix. , and continued revenue growth from 22/28nm products.
The legal person pointed out that the customers’ prudent control of inventory has reduced the visibility of UMC’s processes other than 22/28nm. It is estimated that demand will not necessarily rebound significantly in the fourth quarter, and at the same time, it must face the industry’s price cuts, depreciation, and electricity costs. Costs have increased, so profit estimates for the year have been revised down.
However, despite the sluggish recovery of semiconductors, and this year’s profit revision, we are still optimistic about its profitability at the bottom of the economy, and the current evaluation is not too high, so we still look at UMC’s medium and long-term development positively. Looking forward to 2024, the legal person said that the semiconductor industry is expected to recover strongly, which is expected to drive the demand for 8-inch and 12-inch to rebound.
Investors who are optimistic about UMC’s performance in the market outlook can pay attention to the linked warrant for UMC KGI 31 Purchase 05 (047121), which is currently out of price by 2.9%, with 162 days remaining. (Warrant investment must be risky. This column does not have the intention of solicitation, advertising or any other promotion. Investors should be cautious when referring to it.)
Revenue Investment Semiconductor Industry
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2023-07-29 15:22:38
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