Investment Rating - The investment rating for the company is "Buy" with a target price expected to yield over 20% relative return within six months [7][19]. Core Insights - The company achieved a significant increase in net profit by 299.9% year-on-year, driven by the semiconductor industry's upward cycle and strong demand from its major client, AMD, whose annual revenue reached a record $25.8 billion, contributing 50.35% to the company's revenue [1][2]. - The company has successfully expanded its market presence and optimized its product structure, leading to a 7.24% increase in revenue to 23.88 billion yuan in 2024 [1][3]. - The company is actively pursuing opportunities in the advanced packaging sector, particularly in FC-BGA products, and has seen a 52% increase in sales since the second quarter [2][3]. Financial Performance - In 2024, the company reported total revenue of 238.82 billion yuan, with a net profit of 6.78 billion yuan and a non-GAAP net profit of 6.21 billion yuan, reflecting a year-on-year growth of 944.13% [1][5]. - The company’s R&D investment increased by 31.96% to 1.533 billion yuan in 2024, indicating a strong commitment to innovation [4]. - The projected net profit for 2025 and 2026 has been adjusted downwards to 10.5 billion yuan and 13.62 billion yuan, respectively, with a new forecast for 2027 set at 16.6 billion yuan [5]. Market Position and Strategy - The company has established a robust partnership with AMD, holding over 80% of its orders, which enhances order stability compared to peers [2][3]. - The company has diversified its production capacity across multiple locations, including Nantong, Suzhou, Penang, Hefei, and Xiamen, to support its growth strategy [2][3]. - The company has seen substantial growth across various sectors, including a 46% increase in high-end mobile SOCs and over 200% growth in automotive products [3][4].

Core Viewpoint - The company reported a significant increase in revenue and net profit for 2024, driven by favorable industry trends and strong partnerships, particularly with AMD [1][2]. Group 1: Financial Performance - In 2024, the company achieved operating revenue of 23.882 billion yuan, a year-on-year increase of 7.24% [1] - The net profit attributable to shareholders reached 678 million yuan, up 299.9% year-on-year [1] - The net profit after deducting non-recurring gains and losses was 621 million yuan, reflecting a remarkable increase of 944.13% year-on-year [1] Group 2: Industry Trends and Market Position - The semiconductor industry is in an upward cycle, with market demand recovering, contributing to the company's growth [1] - The company has optimized its product structure and improved capacity utilization, leading to significant revenue growth in mid-to-high-end products [1] - The collaboration with AMD has been pivotal, with AMD's 2024 revenue reaching a record 25.8 billion USD, accounting for 50.35% of the company's revenue [2] Group 3: Product and Market Development - The company has seen substantial growth across various sectors, including a 46% increase in mid-to-high-end mobile SOCs and a 70% increase in the RF sector [3] - In the automotive sector, the company has become a key player in localized packaging, with over 200% year-on-year growth in automotive products [3] - The company is actively pursuing opportunities in advanced packaging, achieving a 52% increase in FC product sales since Q2 [2] Group 4: Research and Development - The company invested 1.533 billion yuan in R&D in 2024, a year-on-year increase of 31.96% [4] - The company has made significant advancements in advanced packaging technology and has applied for 1,656 patents, with nearly 70% being invention patents [4] - The employee stock ownership plan has been successfully implemented, enhancing employee motivation and aligning interests for long-term development [4]

Investment Rating - The investment rating for the company is "Buy" with a target price expected to yield over 20% relative return within six months [7][19]. Core Views - The company has reported a significant increase in net profit by 299.9% year-on-year for 2024, driven by the semiconductor industry's upward cycle and strong demand from major clients like AMD [1][2]. - The company's revenue for 2024 reached 23.882 billion yuan, a year-on-year growth of 7.24%, with a notable increase in net profit attributed to effective management and cost control [1][3]. - The partnership with AMD has deepened, with the company capturing over 80% of AMD's orders, contributing approximately 50.35% to its 2024 revenue [2][3]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 23.882 billion yuan, a 7.24% increase from the previous year, and a net profit of 677.59 million yuan, marking a 299.9% increase [1][6]. - The company’s EBITDA for 2024 is projected at 6.100 billion yuan, with a net profit margin of 2.84% [6][13]. Market Position and Growth - The company has seen substantial growth across various sectors, including a 46% increase in high-end mobile SOCs and over 200% growth in automotive products [3][4]. - The company has established multiple production bases, enhancing its capacity and market reach, particularly in advanced packaging technologies [2][3]. Research and Development - The company invested 1.533 billion yuan in R&D in 2024, a 31.96% increase, and has filed 1,656 patents, with nearly 70% being invention patents [4][5]. - Significant advancements in advanced packaging technologies have been made, including the mass production of the smallest SIP devices [4][5]. Future Projections - The company has adjusted its profit forecasts for 2025 and 2026, projecting net profits of 1.051 billion yuan and 1.362 billion yuan, respectively, while introducing a new forecast for 2027 at 1.66 billion yuan [5][6].

Summary of Tongfu Microelectronics Conference Call Company Overview - **Company**: Tongfu Microelectronics - **Year**: 2024 - **Revenue**: 238.82 billion CNY, up 7.24% YoY - **Net Profit**: 6.78 billion CNY, nearly 300% YoY increase - **Gross Margin**: 14.84%, outperforming Huada Technology [2][8] Financial Performance - **Q4 Revenue**: 68 billion CNY, a historical high - **EBITDA**: 48.15 billion CNY, nearly 10% YoY growth - **R&D Expense Ratio**: Increased to 8.5% in Q4, focusing on advanced packaging and automotive IGBT products [3][9] Industry Context - **Semiconductor Industry**: Entering an upcycle driven by global economic recovery and digital transformation - **China's Market**: Strong industrial vitality, supported by government policies for semiconductor development [3][6] Business Segments - **Suzhou Factory**: Revenue up 7%, net margin at 13% - **Nantong Factory**: Net margin at 5%, impacted by past revenue decline and new project costs - **Ice City Factory**: Revenue down 8%, affected by poor performance in gaming console business [2][12] Future Projections - **2025 Revenue Target**: 265 billion CNY, approximately 11% YoY growth, exceeding Gartner's forecast of 8.5% for the global IC packaging market [2][7] - **Capital Expenditure**: Planned at 60 billion CNY, mainly for facility construction, equipment purchase, and R&D [2][20] Key Growth Areas - **Automotive Packaging**: Achieved 200% growth, driven by the electric vehicle market and smart driving technology [2][15] - **Server-related Business**: Expected significant growth in Q1 2025, benefiting from AMD's performance in the server sector [4][28] R&D and Technology - **Advanced Packaging Technology**: Achieved 100 mm x 100 mm size, accommodating one SOC and six HBM; focusing on cost-performance balance with Cross L technology [4][24] - **Material Costs**: R&D expenses increased significantly, with material costs rising from over 500 million CNY in 2023 to 700 million CNY in 2024 [27] Competitive Positioning - **Comparison with Huada Technology**: Tongfu's core business growth rate of 27% in 2024 is comparable to Huada's 28%, despite overall slower revenue growth [8] - **Market Strategy**: "China for China" strategy may enhance revenue as overseas clients adapt to tariff policies [33] Risks and Challenges - **Profit Margin Influences**: Factors such as marketing expenses, market demand fluctuations, and exchange rate losses could impact profit margins [18] - **Tariff Impacts**: Current tariffs do not significantly affect the semiconductor industry, with most products not returning to the U.S. market [22] Conclusion - **Outlook for 2025**: Positive growth opportunities in the semiconductor industry, with a focus on advanced packaging and automotive applications [34][35]

Core Viewpoint - The recent performance reports of major semiconductor packaging and testing companies in the A-share market indicate a mixed outlook, with significant growth in net profits for Tongfu Microelectronics and Huada Semiconductor, while Huicheng Co., focused on display driver chip packaging, faces declining profits due to increased competition and lower gross margins [1][2][3]. Group 1: Performance Summary of Major Companies - Longji Technology reported a revenue of 35.96 billion yuan for 2024, a year-on-year increase of 21.2%, and a net profit of 1.61 billion yuan, up 9.5% [1]. - Tongfu Microelectronics achieved a revenue of 23.882 billion yuan, a growth of 7.24%, with a remarkable net profit increase of 299.9% to 677 million yuan [1][2]. - Huada Technology's revenue reached 14.462 billion yuan, reflecting a growth of 28%, while its net profit increased by 172.29% to 616 million yuan [1]. Group 2: Financial Dynamics and Challenges - The significant net profit growth for Tongfu Microelectronics and Huada Technology is based on a low comparison from 2023, where their profits had previously declined [2]. - Despite the net profit surge, Tongfu Microelectronics experienced a decline in net cash flow from operating activities, which fell by 9.68% to 3.877 billion yuan, attributed to increased depreciation expenses [2]. - The EBITDA for Tongfu Microelectronics was reported at 4.815 billion yuan, showing a modest growth of 9.38% [2][3]. Group 3: Industry Competition and Gross Margin Trends - Huicheng Co. reported a revenue of 1.501 billion yuan for 2024, a year-on-year increase of 21.22%, but its net profit decreased by 18.48% to 160 million yuan due to intensified competition in the display driver chip packaging sector [3][4]. - The average gross margin for Huicheng Co. was 22.34%, down 4.83 percentage points, while Tongfu Microelectronics and Huada Technology reported lower gross margins of 14.50% and 12.29%, respectively [4][5]. - The competitive landscape is expected to further pressure gross margins, as new entrants and expanded capacities in the display driver chip packaging market could lead to price declines [5].

Investment Rating - The report maintains a "Recommended" rating for the company [1][4][12] Core Views - The company achieved a revenue of 23.882 billion yuan in 2024, representing a year-on-year growth of 7.24%, and a net profit attributable to shareholders of 678 million yuan, a significant increase of 299.90% [4][7] - The company is positioned among the top ten global outsourced packaging and testing companies, maintaining its industry ranking [7][8] - The semiconductor industry is entering an upward cycle, and the company is capitalizing on the recovery in communication terminals, achieving substantial growth in key areas such as SOC, WIFI, PMIC, and display drivers [7][8] Financial Summary - **Revenue and Profit Forecasts**: - 2024 Revenue: 23.882 billion yuan, 2025E: 26.728 billion yuan, 2026E: 29.658 billion yuan, 2027E: 32.682 billion yuan [6][9] - 2024 Net Profit: 678 million yuan, 2025E: 1.189 billion yuan, 2026E: 1.516 billion yuan, 2027E: 1.841 billion yuan [6][9] - **Profitability Ratios**: - Gross Margin: 14.8% in 2024, expected to increase to 15.7% by 2027 [10] - Net Margin: 2.8% in 2024, projected to reach 5.6% by 2027 [10] - Return on Equity (ROE): 4.6% in 2024, expected to grow to 9.9% by 2027 [10] - **Valuation Ratios**: - Price-to-Earnings (P/E) ratio: 57.8 in 2024, decreasing to 21.3 by 2027 [10] - Price-to-Book (P/B) ratio: 2.7 in 2024, expected to decline to 2.1 by 2027 [10] Market Position and Growth Drivers - The company has established significant partnerships with major clients in the mobile phone sector, achieving a 46% growth in mid-to-high-end mobile SOCs [7][8] - In the RF sector, collaboration with leading clients resulted in a 70% growth [7][8] - The company is expanding its presence in automotive applications, with a year-on-year increase of over 200% in automotive product performance [7][8]

说真的，在芯片生产的环节中，中国大陆在芯片封测这一节点上，表现还是相当不错的。 按照2024年的数据显示，全球前10大芯片封测企业中，中国大陆占了4家，分别是长电科技、通富微 电、天水华天，智路封测。 这4大企业在全球的排名是第3、4、5、7名，合计份额在25%左右，也就是全球的四分之一，超过了美 国的市场份额，仅次于中国台湾了，真正的第二梯队。 前几天，长电科技发布了2024年的财报，业绩很是不错，2024年总营收高达359亿元，同比增长 21.2%，而净利润高达16.1亿元，同比增长9.5%。 而近日，通富微电也发布了2024年财报，那真的是炸裂了，实现营业收入238.82亿元，同比增长 7.24%，而扣非净利润6.21亿元，同比增长944%。 通富微电成立于1994年，排名全球第四，中国第二。 通富微信拥有众多的先进封测技术，包括Bumping、WLCSP、FC、BGA、SiP等。 也因为技术先进，所以一直是AMD的最大委外封测厂商，AMD的委外封测订单中，通富微电占到了 80%左右，可以说是AMD最重要的合作伙伴。 而通富微信的营收中，AMD也占到了50%左右，可以说双方是深入绑定的合作关系。 而20 ...

Core Viewpoint - The advanced packaging sector in China's semiconductor industry is experiencing significant growth driven by technological advancements and increasing application demands, particularly in 2.5D/3D packaging, Chiplet technology, and System-in-Package (SiP) innovations [1] Financial Performance of Advanced Packaging Companies - Changdian Technology reported a revenue of RMB 35.96 billion for 2024, a year-on-year increase of 21.24%, with a net profit of RMB 1.61 billion, up 9.52% [2] - Tongfu Microelectronics achieved a revenue of RMB 23.88 billion, a 7.24% increase, and a net profit of RMB 678 million, soaring 299.90% [4] - Huatian Technology's revenue reached RMB 14.46 billion, marking a 28% growth, with a net profit of RMB 616 million, a significant increase of 172.29% [3] - Yongxi Electronics reported a revenue of RMB 3.61 billion, a 50.76% increase, and turned a profit with a net profit of RMB 67.1 million [5] - Guizhong Technology's revenue was RMB 1.96 billion, up 20.26%, but net profit decreased by 15.71% to RMB 313 million [5] - Jingfang Technology expects a net profit between RMB 240 million and RMB 264 million, reflecting a growth of 59.90% to 75.89% [6] Market Trends and Drivers - The advanced packaging market is recovering, with most companies reporting revenue growth between 20% and 50%, except for Guizhong Technology, which saw a decline in net profit [7] - The growth in revenue is attributed to increased demand in sectors such as data centers and automotive electronics, alongside the recovery of the semiconductor market [10] - Changdian Technology focuses on advanced technologies and key application markets, optimizing product structure and enhancing capacity utilization [7] - Tongfu Microelectronics has seen significant growth in automotive products, leveraging its technology advantages in industrial control and automotive applications [7] - Huatian Technology's revenue growth is supported by government subsidies, which contributed significantly to its profits [9] Capacity Expansion and Technological Advancements - Changdian Technology's advanced packaging capacity is fully utilized, prompting expansion efforts to meet customer demand [11] - Tongfu Microelectronics is implementing a multi-point layout strategy, enhancing its production capabilities across various locations [11] - Huatian Technology is progressing with new production bases and significant investment projects aimed at expanding its advanced packaging capacity [11] - Emerging advanced packaging projects are also making strides, with new facilities being established to enhance production capabilities [12] - Domestic advanced packaging companies are continuously iterating their technologies, with notable advancements in high-density packaging and chip integration [13]

Investment Rating - The report maintains an "Outperform" rating for the company [2] Core Insights - The company reported a revenue of 23.882 billion yuan for 2024, a year-on-year increase of 7.24%, and a net profit attributable to shareholders of 678 million yuan, reflecting a significant year-on-year growth of 299.9% [5][6] - The company is expected to achieve a revenue target of 26.492 billion yuan in 2025, representing a growth of 10.9% compared to 2024 [7][8] - The company is capitalizing on the recovery in the industry, achieving diversified growth across various sectors, including a 46% increase in high-end mobile SOCs and over 200% growth in automotive products [8] Financial Data and Profit Forecast - The company’s total revenue is projected to grow from 22.269 billion yuan in 2023 to 32.800 billion yuan by 2027, with a compound annual growth rate (CAGR) of approximately 11.5% [7][10] - The net profit attributable to shareholders is forecasted to increase from 169 million yuan in 2023 to 2.020 billion yuan in 2027, indicating a strong growth trajectory [7][10] - The gross margin is expected to improve from 11.7% in 2023 to 16.0% by 2027, reflecting enhanced operational efficiency [7][10] Business Expansion and Strategic Moves - The company is expanding its production capabilities with significant investments, including a total of 6 billion yuan planned for facilities, production equipment, IT, and R&D to support its growth objectives [8] - The acquisition of a 26% stake in Jinglong Technology is aimed at strengthening the testing segment, which is expected to enhance investment returns and provide stable financial benefits [8]

长江商报消息 ●长江商报记者 潘瑞冬 半导体行业进入上行周期，通富微电（002156.SZ）业绩猛增。 4月11日晚间，通富微电披露2024年年度报告。去年，公司实现营业收入238.82亿元，同比增长7.24%； 归母净利润6.78亿元，同比增长299.90%；扣非净利润6.21亿元，同比增长944.13%，接近10倍。 公司表示，在新一轮行业复苏周期中，公司通过产品结构优化、产能协同与技术平台升级，实现业绩的 持续增长。值得一提的是，公司的车载产品表现亮眼，年报显示，公司在扩大与海内外头部企业的合作 下，车载产品业绩同比激增超200%。 长江商报记者注意到，通富微电还在推进产业链的并购。今年2月，通富微电公告称已完成收购京元电 子持有的京隆科技26%股权，交易金额为13.78亿元。 净利大幅增长 除此之外，Memory业务方面，公司深化与原厂协同，营收同比增长超40%。显示驱动芯片板块客户结 构持续优化，成功导入行业头部客户，并完成RFID先进切割工艺的量产落地。在FCBGA产品方面，公 司聚焦国内重点客户，自第二季度起实现月度销售额阶梯式增长，实现FC全线增长52%。同时，公司 立足市场最新技术前沿，积极 ...