According to the latest report issued by the Asian Department of Foreign Investment, the three major engines of the IC Design Factory will be ASIC, Internet of Things and 12-nanometer high-end smartphone chip combinations, which will maintain steady growth in the growth of mobile chips and non-mobile chips. It is better to hold the joint venture branch than the market rating, but the target price is reduced from 400 yuan (NT $350 to the same below) to $350.
Subdepartment foreign capital also pointed out that the revenue of UNDK is expected to grow by 7% next year, and the gross profit margin will rise to 39% next year from 38% this year due to improved gross margin of mobile phone chips and increased revenue contribution from non-smart phones. However, considering the factors of higher R&D costs, the profit per share forecast of UNDK will also be reduced in this year and next year. Estimates 14%, 9%, 3%, and the target price adjustment to 350 yuan.
The FDI also pointed out that MIDK's smartphone product portfolio continues to improve, since this year has continued to improve smartphone chip shipments and profit margins, and as the proportion of high-end 12 nanometer chip shipments increases, and to create a better market positioning strategy and cost structure to improve efficiency, will help its average price in Ming (20). 19) Continued annual growth; in addition, 5G from next year will be another key industry, MID is expected to outperform 3G and 4G in 5G technology development.