On February 7, MediaTek released its fourth quarter 2019 financial report. According to the financial report, MediaTek's fourth-quarter net profit was NT $ 6.383 billion, a decrease of 7.5% compared with the previous quarter and an increase of 56.5% compared with the same period in 2018. Looking at the consolidation in the first three quarters, for the full year of 2019, MediaTek's net operating income was NT $ 246.222 billion, an increase of 3.4% year-on-year; the annual net profit was NT $ 23.24 billion, an increase of 11.7% over last year.
Market share of the old bank rises, new technology gains success
MediaTek ’s mobile computing platform business in the fourth quarter of last year accounted for about 37% to 42% of its single-quarter revenue. 5G chips have been shipping in small quantities since December last year and are expected to gradually increase in volume this year. MediaTek pointed out that last year's 4G mobile phone chips successfully expanded market share and related profits also improved. Growth products mainly include the Internet of Things, power management, customized chips, etc. In the fourth quarter of last year, revenue accounted for 30% to 35%. Due to seasonal declines in products such as smart homes, revenue in the fourth quarter accounted for approximately 26% to 31%.
MediaTek CEO Cai Lixing said that last year's market share in smartphones, AIoT, customized chips and other consumer electronics products has increased, and new investment technologies such as AI, 5G, WiFi 6, enterprise-level customized chips and cars Electronics, etc., have also made good progress.
2020 is still the year of growth, the three new areas into revenue momentum
Although MediaTek's 2019 Q4 increased significantly compared with the same period in 2018, it still decreased by 7% to 15% from the previous quarter. Cai Lixing said that he still hopes that this year will be a year of growth. The goal is to capture 40% of the market share in the 5G chip market. At present, all 5G projects are ongoing, and MediaTek has deployed internal resources to fully support customers.
Looking ahead to the first quarter of 2020, Cai Lixing said that the new coronavirus epidemic is still in progress. Based on the information known at this stage, we believe that despite the uncertainty of short-term demand, MediaTek's balanced and diversified product and business layout allows Both revenue and gross margin in the first quarter can still grow steadily from the same period last year. In addition, based on the current situation, we also believe that the potential impact on the business throughout the year should be within the controllable range.
He pointed out that with balanced product and business layout, and revenue momentum from the three new areas of 5G, customized chips and automotive electronics, 2020 is still expected to be a year of growth for MediaTek. He believes that based on the current situation, I believe that the potential impact of the epidemic on MediaTek's business throughout the year should be within controllable limits. He also believes that MediaTek's revenue from three new areas this year will exceed 15%, higher than last year's estimate of 10%. In addition to 5G products, MediaTek continued to gain 4G chips last year. This year, it hopes that related chip shipments will continue to increase and continue to increase market share.
At present, domestic first-tier terminal manufacturers "Hua Mi OV" have all purchased 5G mobile phone chips from MediaTek. Among them, OPPO Reno3 first launched MediaTek Tianye 1000L 5G chips, supporting dual-mode 5G, using a 7nm process, a downlink rate of 4.7Gbps, and an uplink of 2.5 Gbps, this chip can be regarded as a scaled-down version of the Teana 1000, and its positioning is also in the high-end chip.
It is reported that MediaTek's 5G SoC has been sampled in the third quarter of last year. In the first quarter of this year, it will be marketed with many customers' flagship mobile phones. In addition, the impact of Sino-US trade friction, the mainland's active de-beautification and other factors will drive, MediaTek will be in the mainland in the first half of 2020 5G's market share is expected to exceed 30%.
Fight the new crown virus battle and turn high competitiveness indicators into medium and long-term growth
MediaTek said that although the new coronavirus epidemic has added uncertainty to the global economy this year and reduced short-term visibility, we believe that the performance in 2019 is a fairly clear indicator of high competitiveness and can translate into medium- and long-term growth.
MediaTek also took emergency measures inside and outside the company in response to the new crown virus:
Internal
I call on every colleague to strengthen awareness of safety precautions, actively respond to government departments' calls for epidemic prevention and preventive measures, and strictly require the heads of all departments to put epidemic prevention work in place and provide and maintain a healthy and safe working environment.
In order to ensure the health and safety of every colleague, the company urgently purchased enough all kinds of anti-epidemic materials during the Spring Festival and completed the disinfection and ventilation of the office environment.
Depending on the staff's respective epidemic prevention needs, they can work flexibly, such as travelling at the wrong peak, working from home, etc. If colleagues have any need for assistance, they can contact the supervisor and HR at any time.
For colleagues who must be on the job, the company provides all-round anti-epidemic measures, including measuring body temperature, issuing masks, ventilation, high-frequency disinfection in public places, canteens and dining safety measures, and so on. My colleagues' opinions and suggestions.
To the outside
On January 29, MediaTek donated 10 million yuan worth of medical supplies to the Wuhan East Lake High-tech Zone Government to assist with actual actions to face the epidemic with Wuhan.
In order to protect customers' epidemic prevention security, face-to-face visits are temporarily cancelled, but close communication and service are still maintained.