Semiconductor: Bitcoin urgent orders support Creative's Q1 revenue to grow by double digits

Creative (3443) held an earnings conference yesterday (16th) . Creative General Manager Lai Junhao said that although the revenue of some design projects was deferred to February , the consolidated revenue in January declined to 480 million yuan, but with the support of urgent orders from Bitcoin customers in the first quarter, the revenue is expected to be better than expected, and the quarterly growth has the opportunity to reach double-digit growth. The three major institutional investors bought more than 800 shares in the past five trading days . Yesterday, the stock rose sharply and stabilized the annual line, closing at 74.2 yuan.

Creative is a subsidiary of TSMC (2330) that provides flexible customized IC services. Creative's general manager, Lai Junhao, said yesterday that the company's products are produced at TSMC's 8-inch and 12-inch factories in Southern Taiwan Science Park . Due to the earthquake that occurred in southern Taiwan on February 6 , the product delivery date has been delayed, but the estimated delay will not exceed one month, so the impact will not be significant.

Creative held an institutional briefing yesterday afternoon, announcing that its net profit after tax in the fourth quarter of last year was 170 million yuan, a quarterly increase of 39% and an annual increase of 86% , with net profit after tax per share of 1.28 yuan.

In 2015 , the company's full-year revenue was RMB 7.762 billion , up 12% year-on-year; gross profit margin was 28.3% , up 1.2 percentage points year-on-year; full-year net profit after tax was RMB 494 million, up 12.7% year-on-year ; and net profit per share was RMB 3.69 .

In terms of product mix, ASIC business accounted for 82% of the 480 million yuan revenue in January , followed by NRE (Non-Related Engineering) at 17% . As for other businesses such as Intellectual Property (IP) , they accounted for about 1% of the overall revenue . Lai Junhao said that this year, IP ( including SoC) will have a chance to account for more than 10 % of revenue . For NRE , due to the deferral of two orders from last year to this year, coupled with the strong solid-state drive (SSD) and network communication markets, performance is expected to be better than in previous years. In addition, 4K TVs, projectors, network communications and server controllers will all be the main driving force for this year's operations.