TKD(603738)2024-09-11 10:14Group 1: Company Upgrades and Developments - The company has established a dedicated automotive-grade production line [3] - A CNAS laboratory has been built to enhance testing capabilities [3] - The number of automotive-grade product part numbers has exceeded 1,000 and continues to be developed [3] - Production capacity for series products like oscillators and RTC has doubled [3] - A new research lab for active modules has been established to quickly adapt to IC version updates [3] - The photolithography production line has improved quality and increased capacity for smaller, higher frequency products [3] Group 2: Domestic Substitution and Market Demand - The company has advanced technology for producing high-frequency and miniaturized oscillators, enhancing innovation capabilities [4] - The automotive-grade production line meets the domestic demand for smart vehicles [4] - The company is capturing high-end oscillator domestic substitution opportunities, closely aligning with downstream manufacturing industries [4] - The mobile phone market is experiencing a resurgence, driven by innovations in AI terminal functions [5] - The module market is seeing increased demand for high-frequency and sensitive TXCO products due to the growth of 5G and Wi-Fi modules [5] Group 3: Production Capacity and Revenue - The company's production capacity is gradually recovering, with quarterly increases in utilization rates [6] - The revenue from automotive-grade products has seen year-on-year growth, with over 1,000 part numbers developed [6] - The company anticipates a gradual recovery in gross profit margins due to rising utilization rates and stable pricing [6] Group 4: Market Environment and Future Outlook - The market environment is improving, with a gradual recovery in demand for passive components driven by the smartphone and AI sectors [7] - The quartz crystal frequency component industry is shifting towards smaller, higher frequency, and more reliable products [7] - The company is positioned to benefit from technological advancements and product innovation, leading to increased market opportunities [7]