Lyon commented that Licheng (6239) was outperforming the broader market, with a target price of 90 yuan.

(file photo)

[Financial Channel/Comprehensive Report] Licheng (6239), a major packaging and testing company, held a conference yesterday (January 31). It is estimated that the revenue in the first quarter of this year will decrease by double digits. recovery.

CLSA lowered Licheng's earnings per share in fiscal year 2023-24, but expects revenue to increase by 14% next year, raised Licheng's rating from "underperform" to "outperform" and raised its target price to 90 yuan.

Powercheng’s Q4 single-quarter consolidated revenue was NT$18.403 billion, with a gross profit margin of 17.2%, an operating profit margin of 11.5%, and an earnings per share of 1.81 yuan, all of which fell short of Lyon or Wall Street expectations. The report pointed out that the lower-than-expected gross profit margin was mainly due to Due to a slowdown in capacity utilization and unfavorable currency movements.

Please read on...

Powercheng predicts that Q1 will bottom out this year and start to recover from Q2. Lyon believes that memory suppliers’ inventories will start to decline from Q2, because DRAM (Dynamic Random Access Memory), NAND (storage flash memory) Accounted for 65% of Licheng's total sales in Q4.

Lyon predicts that Powercheng will resume its growth trend in 2024 after customers digest the inventory.

Lyon also mentioned that the logic business demand of Powercheng, which focuses on niche markets such as automotive AI (artificial intelligence) and industry, is still strong, and sales are expected to grow further this year.

Grasp the pulse of the economy with one hand I subscribe to Free Finance Youtube channel

Already added friends, thank you

Welcome to 【Free Finance】

feel good

Already liked it, thank you.

related news