United Nova Technology (688469)2024-10-29 09:54Financial Performance - The company achieved a revenue of 4.547 billion CNY in the first three quarters, representing a year-on-year growth of 18.68% [1] - In Q3 alone, revenue reached 1.668 billion CNY, marking a year-on-year increase of 27.16% [1] - The net profit attributable to shareholders for the first three quarters was -684 million CNY, a reduction in losses by 667 million CNY, which is a year-on-year improvement of 92.65% [1] - The gross margin for Q3 turned positive at 6.16% [1] Business Growth Drivers - The growth is primarily driven by the rapid conversion of new products such as SiC and 12-inch silicon wafers, enhancing revenue and showcasing scale and technical advantages [2] - The company is enhancing its lean production management, supply chain management, and cost control capabilities, significantly improving market competitiveness [2] Share Buyback and M&A Activities - The company completed a share buyback of approximately 100 million shares for a total amount of about 400 million CNY, primarily for equity incentives [2] - The acquisition of 72.33% equity in a subsidiary was approved, aiming to integrate management and enhance efficiency in the SiC sector [2] Market Position and Future Outlook - The company aims to achieve a revenue target of 10 billion CNY by 2026, with confidence in exceeding annual revenue and loss reduction targets for 2024 [2] - In the automotive sector, the company has secured 25 design wins, with SiC power modules entering mass production at several OEMs, supporting future revenue growth [4] - The company expects to maintain high operational rates in Q4, with continued growth in automotive, consumer electronics, and industrial control sectors [3] Production Capacity and Technology Development - The company’s 6-inch SiC MOSFET production capacity is currently at 8,000 pieces per month, while the 8-inch SiC MOSFET is in the verification stage with a capacity of 1,000-2,000 pieces per month [5] - The company anticipates that the transition to 8-inch SiC production will enhance value due to increased chip density, offsetting production cost increases [4] Market Share and Competitive Advantage - The company’s market share in the domestic power module market has increased from 4% to 8.2%, with a 557% year-on-year increase in shipments [5] - The revenue from module business is expected to double this year, potentially exceeding 10% of total revenue [5]