Securities Star News, on November 4, 2024, Yutai Micro (688515) announced that the company will accept institutional research on November 1, 2024, Huatai Securities Co., Ltd. Quan Heyang, Zhang Haoyi, Jiao Rao, Huafu Securities Co., Ltd. Li Yawen, SPDB AXA Fund Management Co., Ltd. Zhu Shengbo Gong Jiancheng, Nuoan Fund Management Co., Ltd. Li Xiaojie, Qianhai Dominion Investment Management Co., Ltd. Zhang Yijun, Bank of Communications Fund Management Co., Ltd. Yu Chang, Li Ziyang of Morgan Stanley Fund Management Co., Ltd., Liang Xin of Orient Fund Management Co., Ltd., Zhang Haojia of Soochow Fund Management Co., Ltd., Yang Haida of Great Wall Wealth Insurance Asset Management Co., Ltd., Wu Wenji Zhai Yimeng of China Post Securities Co., Ltd., Xu Shihao of Huatai Securities (Shanghai) Asset Management Co., Ltd., Yang Vivian of Nomura Securities, Lei Ming Li Meng of Taikang Asset Management Co., Ltd., Lin Nan of Qiaobei Investment Management Co., Ltd., Yang Jin, Fan Yong, Yang Jin of China Universal Fund Management Co., Ltd., Bi Wei Zhou Lili of Shenzhen Jinmen Financial Technology Co., Ltd., Wang Li of Panjing Investment Investment Management Co., Ltd., Zhu Chenzhe Guo Lei of Minsheng Jiayin Fund Management Co., Ltd., Xie Zelin of Harvest Fund Management Co., Ltd., Huang Wanqing of Dacheng Fund Management Co., Ltd., Zhang Jiansheng of Bodao Fund Management Co., Ltd., Guo Zhenyue of Chuangjin Hexin Fund Management Co., Ltd., Zhang Xinlei of ICBC Credit Suisse Fund Management Co., Ltd., Feng Jiebo of Tibet Dongcai Fund Management Co., Ltd., Ren Yu of Tamsui Spring (Beijing) Investment Management Co., Ltd., Jiang Qi of Shanghai Orient Securities Asset Management Co., Ltd., Feng Sijie of Invesco Great Wall Fund Management Co., Ltd., Zhang Shuwei of China Industrial Securities Global Fund Management Co., Ltd., Ge Fali of Shanghai Panyao Asset Management Co., Ltd., Zhu He of Shanghai Yuyi Asset Management Partnership (Limited Partnership), Tang Yi of Brilliance Asset Mnagement Limited, Yichen Wang of Ikaria Group (HK) Limited, and Chen Jiacheng of Rongtong Fund Management Co., Ltd, Xie Lei of PinPoint Asset Management Limited, Huang Yiming of Baijia Fund Management Co., Ltd., Mi Yongfeng of Beijing Yihe Jiufu Investment Management Co., Ltd., Li Shuai of Bosera Fund Management Co., Ltd., Zhu Yi of Fuanda Fund Management Co., Ltd., Zhang Zhe of Green Fund Management Co., Ltd., Lin Xiaofeng of Everbright Prudential Fund Management Co., Ltd., Xiong Xiaoming of Guangdong Zhengyuan Private Equity Fund Management Co., Ltd., Zeng Zhibin of GF Fund Management Co., Ltd., Pang Liyong of Guoxin Securities Co., Ltd., Chen Ying, Lin Wei of Golden Eagle Fund Management Co., Ltd., Zhang Dawei of Guosen Securities Co., Ltd., Yu Weimin, Yang Tongxin and Yu Yiming of Haitong Securities Co., Ltd., Yan Huichen of Sequoia Capital Equity Investment Management (Tianjin) Co., Ltd., Wang Keyu of Hongde Fund Management Co., Ltd., He Zonghuan of Hunan Yuancheng Investment Management Co., Ltd., Li Fan, Gui Zhiyuan, Zhang Yujing of HSBC Jinxin Fund Management Co., Ltd., Zhou Xiaodong and Zeng Wanping of Huiquan Fund Management Co., Ltd., Lv Weizhi of Jingtai Li & Fung Fund Co., Ltd., Yang Tong of Minsheng Wealth Management Co., Ltd., Zhu Tengfei of Mingshi Partner Fund Management (Zhuhai) Co., Ltd., Lu Xinyuan of Huachuang Securities Co., Ltd., Huang Youwen of Nuoan Fund Management Co., Ltd., Xie Tianling of Qunyi Securities Investment Trust Co., Ltd., Li Yong of Ruida Fund Management Co., Ltd., Chen Hong of Ruirui Investment Management (Shanghai) Co., Ltd., Yao Tierui of Xiamen Nut Investment Management Co., Ltd., Zhang Haimo and Zhang Tian of Shanxi Securities Co., Ltd. Ye Bingxi of Shanghai Bodu Investment Management Co., Ltd., Teng Zhaojie of Shanghai Chenyan Asset Management Center (Limited Partnership), Cai Rongzhuan of Shanghai Fenglan Asset Management Co., Ltd., Shao Kuan of Shanghai Haitong Securities Asset Management Co., Ltd., Meng Yanyi of Hongde Fund Management Co., Ltd., Kevin Ke of Shanghai Jingxi Investment Management Partnership (Limited Partnership), Wang Youhong of Shanghai Mingyu Asset Management Co., Ltd., Cheng Peijian of Shanghai Wudi Private Equity Fund Management Co., Ltd., Li Zhiyong of Shenzhen Qianhai Yunxi Fund Management Co., Ltd., Zhou Hao of Taikang Asset Management Co., Ltd., Dong Jizhou and Huang Ruidong of Taixin Fund Management Co., Ltd., Qiu Tian of Tianfeng Securities Co., Ltd., Dong Chenyang of Xinhua Fund Management Co., Ltd., Luo Chenxi of Cinda Australasia Fund Management Co., Ltd., Yun Yun of Cintai Life Insurance Co., Ltd., Wu Yilin of Southwest Securities Co., Ltd., Liu Huan of Industrial Securities Asset Management Co., Ltd., Tian Chaoping of Xunyuan Asset Management (Shanghai) Co., Ltd., Bao Wei of Yanchuang Asset Management Group Co., Ltd., Yizhi (Beijing) Wang Xiaoqiang of Investment Co., Ltd., Zhang Yijun of Infore Capital Management Co., Ltd., Tang Qiyong of Changsheng Fund Management Co., Ltd., Qi Fei of Changxin Fund Management Co., Ltd., Weng Jinchong of Zheshang Securities Co., Ltd., Wang Yang of CICC Fund Management Co., Ltd., Wang Jiuhong of Zhongtai Securities Co., Ltd., Xue Huirong of Quam Fund Management Co., Ltd., Sun Haozhong of CITIC Prudential Fund Management Co., Ltd., Xie Wei of China Securities Construction Investment Fund Management Co., Ltd., and Zou Chen of Zhongyuan Securities Co., Ltd. participated.

The details are as follows:

Q: The overall situation of the industry at present

A: According to the 2024 Global Semiconductor Market Autumn Forecast Report released by the World Integrated Circuit Association (WIC), the global semiconductor market size is expected to reach $620.2 billion in 2024, a year-on-year increase of 17%. The latest data from the World Semiconductor Trade Statistics Organization (WSTS) shows that the market will still grow in the third quarter of 2024. Full-year 2024 growth is expected to be between 14.4% and 20.7%, with the performance of the third quarter playing a key role in achieving the full-year growth target. According to the Semiconductor Industry Association (SI), global semiconductor sales reached $53.1 billion in August 2024, up 20.6% year-over-year and 3.5% month-on-month, hitting a record high, and monthly sales increased for the fifth consecutive month. Combined with the above industry trends, and at the same time, the gradual increase of the company's products and the gradual destocking of downstream customers, the company achieved operating income of 266.071 million yuan from January to September 2024, a year-on-year increase of 61.44%, and the company officially entered the growth sequence of the second round of R&D harvest period.

Q: Industry outlook for the fourth quarter of 2024

A: According to SI data, both global and Chinese semiconductor sales have achieved positive year-on-year growth for 10 consecutive months. Gartner, a market research firm, released its forecast for the global semiconductor market on October 28, which predicts that the global chip market size will grow by 18.8% to $629.8 billion in 2024. Global semiconductor sales are expected to reach $716.7 billion in 2025, up 13.8% year-over-year. From January to September 2024, the company's revenue from industrial-grade products increased by more than 100% year-on-year, and the downstream client was gradually decentralized, and the company's revenue in the fourth quarter is expected to continue to grow, achieving the eighth consecutive quarter of quarter-on-quarter growth in major product revenue. From a full-year 2024 perspective, the company still maintains its forecast that overall revenue will return to the overall 2022 level this year.

Q: What is the impact of the domestic industry on the company's performance?

Answer: According to the data released by the National Bureau of Statistics, in September, the added value of industrial enterprises above designated size increased by 5.4% year-on-year, 0.9 percentage points faster than the previous month. On a month-on-month basis, in September, the added value of industrial enterprises above designated size increased by 0.59% over the previous month. From January to September, the added value of industrial enterprises above designated size increased by 5.8 percent year-on-year. In terms of products, the output of integrated circuit products and new energy vehicles from January to September 2024 increased by 26.0% and 33.8% year-on-year, respectively. The output of integrated circuit products in September was 36.7 billion, a year-on-year increase of 17.9%; 1.308 million new energy vehicles, a year-on-year increase of 48.5%. From the overall rise of the market environment, to the improvement of terminal inventory and the warm demand, it will have a positive impact on the company's revenue increase. 4. Overall revenue for the third quarter of 2024

The total operating income in the first three quarters of 2024 was 266.071 million yuan, an increase of 61.44% year-on-year. The company has made positive progress in product research and development and market expansion, with revenue of 111.3946 million yuan in the third quarter, a year-on-year increase of 97.69%, and the company has successfully refreshed the single-quarter revenue record since its establishment, and the company's main product revenue has achieved quarter-on-quarter growth for 7 consecutive quarters. Based on the strong recovery of revenue levels in the first three quarters of 2024, the company is confident in its future business development. 5. The company's product shipments

The new products launched by the company in recent years have been verified by downstream users and gradually adopted, and the significant growth in sales volume has promoted the rapid growth of the company's operating income. In the first three quarters, the company's product shipments increased year-on-year, and chip shipments have achieved quarter-on-quarter growth for seven consecutive quarters. At present, the company's overall product shipments have exceeded 200 million chips, and the large-scale mass production of Ethernet physical layer chips has been realized in a real sense. In the future, the company will continue to create more new milestones.

Q: The company's new products in the third quarter

Answer: The company has recently launched a 2-port Gigabit Ethernet switch chip and has begun to ship in small batches. The 2-port Gigabit switch chip supports two GE downlink ports, one RGMII/one 2.5G Serdes interface, or one RGMII uplink interface. This enables the chip to realize 2+1/2+2 port switching applications on a single chip, and can flexibly dock with various SoCs to realize IP cameras, Internet phones, fiber optic transceivers, CPE and other applications. The switch chip inherits the company's self-developed Ethernet physical layer IP, and adopts high-speed DSP technology and analog front-end (FE) technology, with polarity detection and correction, adaptive equalization, sound cancellation, EEE power saving and other functions. It can meet the needs of Ethernet switching access in multiple scenarios such as home, enterprise, security, industrial control, and intelligent networking. The company will continue to increase investment in new product research and development, optimize existing products, and provide customers with product portfolios with different performance levels and different transmission rates to meet the changing needs of end customers.

Q: What about industrial-grade products

A: The company has outstanding performance in industrial-grade products, has formed a complete product line, and has been widely used in multiple industrial scenarios. The company's industrial-grade Ethernet physical layer chips can adapt to the harsh temperature environment from -40°C to 85°C, and are mainly used in telecommunications, data communications, and industrial fields that require Ethernet communication, such as switches, industrial Internet, industrial control, power systems, data centers, etc. In the first three quarters of 2024, the revenue of industrial-grade products increased by 120.40% year-on-year, which indicates that the company's customers on the industrial product side have a good destocking situation and inventory pressure has been greatly alleviated. With the continuous progress of technology and product innovation, the company's industrial-grade products are expected to achieve greater market breakthroughs in the future.

Q: The trend of the company's gross profit margin

Answer: The company's gross profit margin is comprehensively affected by factors such as product structure and competitive strategy, and the level of product gross profit margin will fluctuate to a certain extent. Generally, the gross profit margin of industrial products is higher than that of commercial products, and when the proportion of industrial products is relatively high, the company's overall gross profit margin will increase. The company's gross profit margin increased from 41.11% in the first quarter of 2024 to 42.85% in the first half of 2024 to 42.90% in the first three quarters, showing a gradual upward trend, mainly due to the increase in the proportion of the company's industrial products compared with commercial products. In view of the fact that the company is still facing certain price competition, and the possibility of price increases in wafer processing in the second half of this year, it is prudently expected that the gross profit margin will decline in the fourth quarter.

Q: The process of the automotive Ethernet switch chip

Answer: With the development of automotive intelligence and networking, the market demand for automotive Ethernet switch chips continues to grow. According to market research firm IHS Markit, the global automotive Ethernet market is expected to grow from approximately $1 billion in 2020 to more than $3 billion by 2025, growing at a compound annual growth rate of 25%. The company's automotive Ethernet switch chip samples have begun to be tested by some customers, and further cooperation will be carried out in the future, becoming one of the supporting product lines of the company's automotive high-speed wired communication chips.

Q: Tell us about the company's ESG rating on Wind rising from BB to BBB

Answer: As an industry pioneer in the R&D, design and sales of high-speed wired communication chips, Yutai Micro has always adhered to the core concept of creating high-reliability and high-stability communication chip products, and is committed to providing customers with excellent high-performance solutions. While deeply cultivating its main business, the company has forward-looking integrated environmental, social and governance (ESG) concepts into its corporate strategic development, and officially released its first ESG report (2023) in 2024, marking a solid step on the company's sustainable development path. The company's ESG rating has been upgraded to BBB level, which is an affirmation of the company's efforts in the field of ESG, and also a recognition of the company's future sustainable development potential. The company has always regarded sound governance as an important cornerstone to achieve high-quality development; Always take technological innovation as the core driving force for building a new development pattern; Always take people-oriented as the core value of shaping collective competitiveness; Always take green development as a social responsibility to practice the new development concept; We will always continue to uphold the ideal of sustainable development, promote ourselves and the industrial chain to achieve higher quality development, and make unremitting efforts to build a better future!

Yutai Micro (688515) main business: R&D, design and sales of high-speed wired communication chips.

Yutai Micro's third quarter report for 2024 shows that the company's main revenue was 266 million yuan, an increase of 61.44% year-on-year; net profit attributable to the parent company -140 million yuan, a year-on-year decrease of 0.09%; deducted non-net profit of -169 million yuan, an increase of 3.24% year-on-year; In the third quarter of 2024, the company's single-quarter main revenue was 111 million yuan, a year-on-year increase of 97.69%; The net profit attributable to the parent company in a single quarter was -31.5154 million yuan, an increase of 44.76% year-on-year; The non-net profit deducted in a single quarter was -45.5697 million yuan, an increase of 38.79% year-on-year; The debt ratio was 6.88%, the investment income was 17.3922 million yuan, the financial expenses were -1.9843 million yuan, and the gross profit margin was 42.9%.

A total of 3 institutions have rated the stock in the last 90 days, and 3 have given buy ratings; The average institutional price target over the last 90 days is 70.57.

Here's the detailed earnings forecast information:

Margin data shows that the stock has a net financing inflow of 46,986,800 in the past three months, with an increase in the financing balance, and a net outflow of 1,400,400 with a decrease in the balance of securities borrowing and lending.

The above content is compiled by Securities Star based on public information, generated by intelligent algorithms, and does not constitute investment advice.