Many semiconductor companies with good performance in 2024 mentioned in the forecast that the semiconductor industry is gradually coming out of the downward cycle, and downstream demand is showing a moderate recovery.

As of the close of trading on January 24, more than 90 A-share semiconductor companies have released 2024 performance forecasts. Among them, there were 27 companies with a pre-increase, a slight increase, and a turnaround of losses, and 13 companies with a pre-decrease and a slight decrease respectively; A total of 42 companies are expected to lose money, 13 companies will continue to lose or increase losses, 15 companies will reduce losses, and 14 companies will lose money for the first time.

It is worth noting that many semiconductor companies with good performance in 2024 have mentioned the same reason when explaining the performance improvement - the semiconductor industry is gradually coming out of the downward cycle, and the downstream demand is showing a moderate recovery.

The net profit of these "top students" has increased several times

According to the statistics of Flush iFinD, among the 27 companies whose performance is expected to increase in 2024, 15 and 4 are from digital chip design and analog chip design, respectively, and Huatian Technology (002185. SZ), Jingfang Technology (603005. SH) two packaging and testing companies, in addition to Changchuan Technology (Rights Protection) (300604. SZ), NAURA (002371. SZ), Pioneer Precision (688605. SH) from the semiconductor equipment link, crystal integration (688249. SH) is from the integrated circuit manufacturing sector, and the remaining two companies are from the discrete device segment.

Among them, the company with the highest year-on-year increase in net profit is Demingli (001309. SZ), a year-on-year increase of 1260.08% to 1500.10%. In addition, Changchuan Technology (300604. SZ), Allwinner Technology (300458. SZ), GigaDevice (603986. SH), Weir shares (603501. SH) and other companies announced a year-on-year increase in net profit of more than 500%, and Juchen shares (688123. SH), Aiwei Electronics (688798. SH) and other 8 companies' net profit increase is in the range of 2 to 5 times.

On January 17, Demingli disclosed the 2024 performance forecast, which is expected to achieve operating income of 4.5 billion yuan to 5 billion yuan in 2024, a year-on-year increase of 153.39% to 181.55%, a net profit attributable to the parent company of 340 million yuan to 400 million yuan, a year-on-year increase of 1260.08% ~ 1500.10%, and a non-net profit of 294 million yuan to 354 million yuan, a year-on-year increase of 1868.31% ~ 2270.00%.

In response to the reasons for the change in performance, Demingli said that the company focuses on the main business of storage, broadens the product layout, and basically realizes the full category coverage of storage modules based on the four series of solid state drives, embedded storage, memory products, and mobile storage, and in 2024, the company will continue to increase market expansion efforts, and some products have successfully completed the market introduction and passed customer verification, and the business scale and profitability have been significantly improved.

The

company with the second highest net profit growth rate is Changchuan Technology from the special test equipment link for integrated circuits. According to the 2024 performance forecast released on January 21, the company is expected to achieve a net profit attributable to the parent company of 400 million yuan to 500 million yuan during the reporting period, a year-on-year increase of 785.75% to 1007.18%. Regarding the huge growth in performance, Changchuan Technology said that in 2024, the global semiconductor will gradually come out of the downward cycle, showing a moderate recovery trend, and the customer demand in the subdivided field will increase significantly. Thanks to the strong investment in R&D projects in the early stage, the company's product line has been continuously enriched, the product coverage used in the field of integrated circuit testing has been expanded, the market share has continued to rise steadily, and the annual revenue has achieved significant growth compared with the previous year.

Similar to Changchuan Technology, GigaDevice, a niche storage leader, also attributed the sharp increase in performance to the recovery of the downstream market. According to its performance forecast, the company expects to achieve revenue of 7.349 billion yuan in 2024, a year-on-year increase of about 27.57%, and at the same time, the net profit attributable to the parent company will be 1.090 billion yuan, a year-on-year increase of about 576.43%, and the non-net profit will be 1.030 billion yuan, a year-on-year increase of 3659.04%.

In this regard, GigaDevice said that in 2024, under the background of the recovery of downstream market demand, customers will increase their stocking, and the company will continue to adopt a market share-centric strategy, and the company's products will achieve significant growth in revenue and sales in many fields such as consumption, networking, and computing. In addition, the increase in GigaDevice's net profit is also due to the significant year-on-year decline in asset impairment losses in 2024, while in 2023, the company's goodwill and inventory asset impairment losses totaled about 610 million yuan.

Weir, which is mainly engaged in image sensor solutions, display solutions and analog solutions, has forecast that its operating income will hit a record high in 2024. According to the performance forecast, Weir shares are expected to achieve operating income of 25.408 billion yuan to 25.808 billion yuan in 2024, an increase of 20.87% to 22.78% year-on-year; The net profit attributable to the parent company was 3.155 billion yuan to 3.355 billion yuan, an increase of 467.88% to 503.88% year-on-year.

In response to the reasons for the sharp increase in the above-mentioned performance, Weir explained that with the continuous penetration of the company's image sensor products in the high-end smartphone market and the automotive autonomous driving application market, the market share in related fields has grown steadily, and the company's operating income has increased significantly.

These companies are doing better

At the same time, among the more than 90 companies that have released performance forecasts so far, there are Cambrian-U (688256.SH), Xinlian Integration-U (688469.SH), Broadcom Integration (603068. SH), Jinghua Micro (Rights Protection) (688130. SH) and 15 other companies will reduce losses in 2024, in addition to BIWIN Storage (688525. SH), Silanwei (600460. SH), Shanghai Belling (600171. SH), Yongsi Electronics (688362. SH) and other 6 companies announced that they will turn losses into profits in 2024.

Among the 15 companies that have reduced losses, Cambrian's narrowing of losses in 2024 has attracted the most attention. With the detonation of ChatGPT in the AI concept sector, Cambrian, which is mainly used in AI chips in the field of large models, is highly sought after by the market, and after excluding new shares, Cambrian will top the list of A-share gains with a share price increase of 387.55% in 2024, and its share price will continue to rise in 2025, touching a high of 777.77 yuan per share in intraday trading on January 10. On the other hand, Cambrian's continuous loss-making performance since its listing in 2020 has formed a "double heaven of ice and fire" with the hot stock price, making it subject to the controversy of the "market dream rate" valuation.

Cambrian's 2024 performance forecast shows the dawn of profitability. According to the forecast, Cambrian expects to achieve revenue of 1.070 billion yuan to 1.2 billion yuan in 2024, a year-on-year increase of 50.83% to 69.16% compared with the statutory disclosure data in 2023; The net loss attributable to the parent company was 396 million yuan to 484 million yuan, a year-on-year decrease of 42.95% to 53.33%. It is worth noting that the third quarter report of 2024 shows that Cambrian's net loss attributable to the parent in the first three quarters of last year reached 724 million yuan, which also means that Cambrian has achieved profitability in the fourth quarter of 2024, with a single-quarter profit of 240 million yuan to 328 million yuan.

For the reasons for the change in performance, Cambrian said that in terms of revenue, the company continued to expand the market and actively help the application of artificial intelligence, which made the revenue scale during the reporting period increase significantly compared with the same period last year, and at the same time, the impact of non-recurring gains and losses on net profit during the reporting period is expected to be 369 million yuan to 451 million yuan, mainly due to the reversal of bad debt provisions in the previous period and the impact of government subsidies included in the current profit and loss.

Among the six semiconductor companies that have announced a turnaround, BIWIN Storage has the largest turnaround. According to the performance forecast, BIWIN Storage will achieve operating income of 6.5 billion yuan to 7 billion yuan in 2024, an increase of 81.02% to 94.95% year-on-year; The net profit attributable to the parent company will be 160 million yuan to 200 million yuan, and the company's net loss attributable to the parent company in 2023 will be 624 million yuan, which also means that BIWIN's net profit attributable to the parent company in 2024 will increase by up to 824 million yuan compared with the same period last year.

As for the reasons for the significant increase in performance, BIWIN Storage also mentioned that it benefited from the recovery of the storage industry, saying that the company will seize the upward opportunities in the industry in 2024, vigorously expand first-line mobile phone and PC customers at home and abroad, and product sales will increase significantly year-on-year; At the same time, BIWIN Storage also benefits from its own competitive advantages in the field of smart wearables.

Specifically, BIWIN Storage said in the performance forecast that the company's representative storage products such as ePOP have the advantages of low power consumption, fast response, thinness and compactness, and have entered Meta, Rokid, Thunderbird Innovation, Shanji and other well-known AI/AR glasses manufacturers at home and abroad, as well as Google, Xiaotiancai, Xiaomi and other well-known smart wearable manufacturers at home and abroad The revenue of smart wearable storage products in 2024 will be about 800 million yuan, a significant year-on-year increase, "In 2025, with the volume of AI glasses, The company's deepening cooperation with key customers such as Meta will promote the continuous growth of the company's smart wearable storage business."

The turnaround of Shanghai Belling is related to the income from "stock speculation". According to the performance forecast, Shanghai Belling is expected to achieve a net profit of 380 million yuan to 400 million yuan attributable to the parent company in 2024, compared with a net loss of 60.2198 million yuan in the same period last year. For the performance reversal, in addition to talking about the recovery of the industry, the growth of downstream customer demand and the increase in revenue brought about by the penetration of the company's products in the field of automotive electronics and industrial control, Shanghai Belling also mentioned the company's new clean energy (605111. SH) The company's fair value change profit and loss and investment income of the company's shares were about 126 million yuan, an increase of about 397 million yuan over the same period of last year, resulting in a year-on-year increase in the company's net profit attributable to the parent company, and in 2023, due to the overall impact of the A-share semiconductor sector, the fair value change profit and loss and investment income of this part of the financial assets will be -271 million yuan.