The United Nations General Assembly of the semiconductor component distributors held a legal person briefing today. Yuan Xingwen, chief financial officer and spokesman, said that the inventory is currently at a high level for 64 days, and will reach a peak in the second half of this year. Next year, with the adjustment of the supply chain, the inventory will gradually fall back to Normal 45~50 days.
Yuan Xingwen pointed out that Dalian University is a distributor, and its assets are mainly working capital. Risks such as inventory depreciation losses are not borne by distributors in the industry, and there are usually price protection and exchange mechanisms. Regardless of whether financial expenditure or working capital changes, it will not affect the dividend policy of the United Nations General Assembly.
When asked about the impact of geopolitics on the supply chain, Yuan Xingwen said that as long as the supply chain moves, the Dalian Metropolis will cooperate, including North America, Mexico, and Southeast Asia. The Dalian Metropolis has already been deployed. Taiwan and China are still the main delivery areas of the United Nations General Assembly, but the proportion of North American and Southeast Asian deliveries has gradually increased. Last year, the total was less than 10%, and this year it increased to 12%. The revenue in North America and Southeast Asia both increased by double-digit percentages.
Lin Chunjie, deputy general manager, said that in the second half of this year, the supply and demand of semiconductors will reverse, and the demand from end customers to upstream suppliers has been declining. The market has reached a consensus that the inventory can be digested by the end of the first half of next year, and then it will return to normal supply and demand. In the medium and long term, semiconductors are still promising in the fields of cloud manufacturing, electric vehicles, data centers, servers, and Netcom.
Speaking of the U.S. ban on exporting high-end chips to China, Lin Chunjie said that chip-related businesses such as artificial intelligence (AI) or high-speed computing are directly delivered by suppliers, which has little impact on distributors and the General Assembly. As the US-China trade war continues, Taiwanese manufacturers may benefit indirectly, driving demand for equipment such as servers, security controls, and Netcom, which is another business opportunity for the General Assembly.
The third quarter revenue of the United Nations General Assembly reached NT$189.823 billion, down 4.6% quarter-on-quarter and 6% year-on-year; operating profit was approximately 3.558 billion yuan, down 5.8% quarter-on-quarter and 8.8% year-on-year; reinvestment and foreign exchange gains from outside the industry were noted The net profit after tax was 2.762 billion yuan, down 4.7% quarter-on-quarter and 13.3% year-on-year, still, the second highest in the same period; earnings per share were 1.64 yuan.
The General Assembly pointed out that the cumulative revenue in the first three quarters of this year increased by 3.4% year-on-year, and the net profit after tax increased by 3.5% year-on-year, mainly because downstream customers continued to invest in Netcom and peripheral equipment, servers, and automation demand drove industrial electronics and automotive electronics. Non-3C market applications continue to be strong, and customers in North America and Southeast Asia have been put into production, driving demand for semiconductors and related electronic components.
Looking forward to the fourth quarter, the United Nations General Assembly estimates that the revenue will be between 175 billion and 185 billion yuan, equivalent to a quarterly decrease of 2.5%~7.8%; the estimated net profit after tax is 1.312 billion to 1.746 billion yuan, equivalent to a quarterly decrease of 36.8%~ 52.5%; the estimated EPS is 0.78~1.04 yuan.
