Summary of Shenzhen Goodix Technology Co Ltd Conference Call Company Overview - **Company**: Shenzhen Goodix Technology Co Ltd - **Industry**: Greater China Technology Semiconductors - **Stock Rating**: Underweight [3] - **Price Target**: Rmb65.00, representing a downside of 22% from the current price of Rmb83.09 [3] - **Market Capitalization**: Rmb37,867 million [3] - **Average Daily Trading Value**: Rmb532 million [3] Financial Performance - **Fiscal Year Ending**: December - **Earnings Per Share (EPS)**: - 2024: Rmb1.32 - 2025 (estimated): Rmb1.29 - 2026 (estimated): Rmb1.43 - 2027 (estimated): Rmb1.64 [3] - **Revenue (Net)**: - 2024: Rmb4,375 million - 2025 (estimated): Rmb4,795 million - 2026 (estimated): Rmb5,781 million - 2027 (estimated): Rmb6,410 million [3] - **EBITDA**: - 2024: Rmb511 million - 2025 (estimated): Rmb643 million - 2026 (estimated): Rmb894 million - 2027 (estimated): Rmb1,003 million [3] - **Price-to-Earnings (P/E) Ratio**: - 2024: 61.1 - 2025 (estimated): 64.6 - 2026 (estimated): 58.0 - 2027 (estimated): 50.8 [3] - **Return on Equity (ROE)**: - 2024: 7.5% - 2025 (estimated): 6.8% - 2026 (estimated): 7.2% - 2027 (estimated): 7.8% [3] Market Outlook - **Order Outlook**: Anticipation of better orders in the second half of the year, driven by strong smartphone seasonality in the fourth quarter [5] - **Ultrasonic Fingerprint Sensor**: - Full-year shipment estimate increased to 40 million units from 35 million due to increased penetration - Expected addressable market of 130 million units in 2026 and 180-200 million units in 2027 - Targeting over 60% market share by 2027 [5] - **NFC, eSE, eSIM Solutions**: - Expected market size of Rmb7 billion with a target of 30% market share - Current gross margin around 30% with potential for improvement [5] - **Other Products**: - Light sensor adoption in flagship smartphone models - Haptic driver in design phase - OLED TDDI product launch expected in 1H26, with commercialization in 2027 [5] Risks - **Upside Risks**: - Faster-than-expected market share expansion and new product rollout - New applications for fingerprint technology [8] - **Downside Risks**: - Slower-than-expected market share expansion and new product rollout - Weaker-than-expected gross margin despite improving cost structure [8] Valuation Methodology - **Key Assumptions**: - Cost of equity: 8.4% - Medium-term growth rate: 16.5% - Terminal growth rate: 4.9% [7] Conclusion Shenzhen Goodix Technology Co Ltd is positioned in a competitive semiconductor market with a focus on innovative products like ultrasonic fingerprint sensors and NFC solutions. Despite a strong market outlook, the company faces challenges in achieving its growth targets and maintaining margins. The current stock rating is underweight, reflecting cautious sentiment amid potential risks.

Core Viewpoint - The company expects a decline in revenue for the third quarter due to U.S. tariffs, early inventory pull-ins by customers, and the continued appreciation of the New Taiwan Dollar [1][3]. Group 1: Revenue Forecast - The company estimates third-quarter revenue to be between NT$237 billion and NT$247 billion (approximately RMB 57 billion to RMB 59.4 billion), representing a quarter-over-quarter decline of 6-10% and a year-over-year decline of 11-15% [1][3]. - Gross margin is projected to be between 34-37%, and operating margin is expected to be between 15-18% [1]. Group 2: Market Conditions - The impact of U.S. tariffs has been established, and the company will closely monitor its effects on the industry and economy [3]. - The consumer electronics sector benefited from China's subsidies and early inventory pull-ins due to U.S. tariffs in the first half of the year, but these effects are diminishing, leading to a more conservative ordering attitude from customers [3]. Group 3: Product Line Performance - Revenue from the small and medium-sized driver ICs is expected to decline less significantly, while the large-size DDIC is anticipated to see the largest reduction due to the tapering off of the effects from China's subsidies and tariffs [3][4]. - The performance of televisions is expected to remain stable, while laptops may see slight growth, and both tablets and monitors are projected to decline [3]. Group 4: Future Outlook - The company is cautious about the fourth quarter, focusing on the impact of U.S. tariffs, the appreciation of the New Taiwan Dollar, and potential inventory demands driven by promotions in China [4]. - The company anticipates an increase in shipments of OLED TDDI, with expectations of over 10 million units shipped this year due to successful mass production of new models [4].

法人看好，苹果iPhone 17 Air将是今年最受瞩目的机种款式，联咏将随着客户新机发售出货量能逐 步放大，将有助其下半年业绩表现。 #联咏 #显示驱动 #OLEDTDDI 【 巨亨网 】 联咏继去年首度将OLED驱动IC导入苹果新机外，市场传出，联咏OLED TDDI进一 步获苹果验证并导入下世代iPhone 17 Air系列，中国手机品牌业者如小米也预计采用，该产品预计 本季开始小量投产。 联咏对此回应，OLED TDDI预计第二季进入量产，一切皆按计划进行。 据了解，联咏OLED TDDI采用联电22纳米高压制程，直接比肩三星System LSI，相关供应链如旺硅、颀邦、南茂都可 望进补。 图片来源：联咏 业界传出，苹果iPhone 17将推出更轻、更薄的大改款Air系列，并延续OLED屏幕，而OLED TDDI 因可整合触控IC与驱动IC，大幅减少板子上的使用空间，进而实现更薄的机身，让iPhone 17 Air最 厚的机身部分等于iPhone 16 Pro最薄的部分。 据了解，苹果长期以来对韩系面板厂采用自家IC方案的绑售策略相当敏感，期望透过分散供货商 模式来进行管理，因此先前即要求联咏代替LG ...