Taiwan IC design houses see gross margins come under downward pressure

Related company info

Jay Liu, Taipei; Jessie Shen, DIGITIMES

Tuesday 16 November 2021

Latest stock

Novatek [3034] historical stock price (NT$)
Date	Volume (k)	Transactions	Value	Open	High	Low	Close	Change		Ask	Bid
5-Jul	7,196	18,773	2,105,435,029	302.00	302.50	287.00	292.00	-4.00	-1.35%	291.50	292.00
4-Jul	9,131	11,867	2,678,607,359	294.00	297.00	285.50	296.00	+7.50	+2.60%	295.50	296.00
1-Jul	9,614	13,380	2,846,062,010	300.00	307.00	288.00	288.50	-13.50	-4.47%	288.00	288.50
30-Jun	6,599	7,173	2,002,597,503	305.00	307.50	301.00	302.00	-8.00	-2.58%	302.00	303.00
29-Jun	7,154	7,246	2,213,514,423	301.00	317.50	301.00	310.00	-5.00	-1.59%	310.00	310.50
28-Jun	6,874	9,697	2,187,216,067	326.00	327.00	314.00	315.00	-15.00	-4.55%	315.00	315.50
27-Jun	4,895	9,429	1,616,310,878	326.50	335.00	326.00	330.00	+5.00	+1.54%	330.00	330.50

Latest sales

Novatek: Consolidated revenues, May 2021 - May 2022 (NT$m)
Month	Sales	M/M	Y/Y	YTD	Y/Y
May-22	10,984	(10.8%)	(4.1%)	59,815	22.3%
Apr-22	12,320	(1.2%)	11.2%	48,831	30.4%
Mar-22	12,470	6.4%	30.9%	36,512	38.5%
Feb-22	11,725	(4.8%)	34.5%	24,042	42.8%
Jan-22	12,317	3.7%	51.7%	12,317	51.7%
Dec-21	11,884	(1.5%)	62.7%	135,366	69.3%
Nov-21	12,067	(4.2%)	59.2%	123,481	70%
Oct-21	12,591	(2.6%)	66.4%	111,415	71.2%
Sep-21	12,932	0.1%	62.2%	98,823	71.9%
Aug-21	12,915	3.3%	77.3%	85,892	73.4%
Jul-21	12,499	7.9%	85.4%	72,977	72.8%
Jun-21	11,580	1.2%	97.8%	60,478	70.4%
May-21	11,448	3.3%	84.3%	48,898	64.9%

*Figures are consolidated
Source: TSE, compiled by Digitimes, July 2022

Novatek: Consolidated revenues, 1Q21 - 1Q22 (NT$m)
Quarter	Sales	Q/Q	Y/Y	YTD	Y/Y
1Q-22	36,512	(0.1%)	38.5%	36,512	38.5%
4Q-21	36,542	(4.7%)	62.8%	135,366	69.3%
3Q-21	38,346	12.4%	74.3%	98,823	71.9%
2Q-21	34,111	29.4%	83.3%	60,478	70.4%
1Q-21	26,367	17.4%	56.1%	26,367	56.1%

*Figures are consolidated
Source: TSE, compiled by Digitimes, July 2022

Latest balance sheet and income statement

Novatek: Consolidated balance sheet, 1Q21 - 1Q22 (NT$k)
Item	1Q-2022	4Q-2021	3Q-2021	2Q-2021	1Q-2021
Current assets	110,894,994	100,114,690	83,844,393	69,428,356	55,347,226
Intangible assets	2,441,005	2,484,887	2,522,773	2,505,486	2,494,683
Non-current assets	20,329,531	20,478,344	19,191,662	18,870,000	13,575,852
Assets	131,224,525	120,593,034	103,036,055	88,298,356	68,923,078
Current liabilities	35,623,267	35,909,179	33,837,024	41,168,640	22,204,204
Non-current liabilities	14,693,461	14,232,532	9,919,805	667,953	699,147
Liabilities	50,316,728	50,141,711	43,756,829	41,836,593	22,903,351
Stockholders' equity	80,907,797	70,451,323	59,279,226	46,461,763	46,019,727

*Figures are consolidated
Source: TSE, compiled by Digitimes, July 2022

Novatek: Consolidated income statement, 1Q21 - 1Q22 (NT$k)
Item	1Q-2022		4Q-2021		3Q-2021		2Q-2021		1Q-2021
Item	NT$k	% of sales	NT$k	% of sales	NT$k	% of sales	NT$k	% of sales	NT$k	% of sales
Gross sales	36,511,685						34,111,302		26,366,515
Operating revenue	36,511,685	100%	36,542,106	107.1%	38,345,587	112.4%	34,111,302	100%	26,366,515	100%
Gross profit (loss) from operations	18,524,079	50.7%	18,800,964	55.1%	19,917,256	58.4%	17,166,736	50.3%	11,506,568	43.6%
Operating expenses	5,243,958	14.4%	5,351,806	15.7%	4,795,859	14.1%	5,174,713	15.2%	4,296,036	16.3%
Operating income (loss)	13,280,121	36.4%	13,449,158	39.4%	15,121,397	44.3%	11,992,023	35.2%	7,210,532	27.3%
Non-operating expenses and losses	485,379	1.3%	141,577	0.4%	160,492	0.5%	-35,912	-0.1%	75,690	0.3%
Income from continuing operations before income tax	13,765,500	37.7%	13,590,735	39.8%	15,281,889	44.8%	11,956,111	35.1%	7,286,222	27.6%
Net income (loss)	11,134,928	30.5%	10,933,240	32.1%	12,271,038	36%	9,786,068	28.7%	5,875,214	22.3%
Diluted earnings per share (NT$)	18.3		17.9		20.1		16.1		9.7