Q2 revenue opens red and bottoms out for mainstream stocks

As the first-quarter financial reports and April revenue are released one after another, stocks with outstanding performance are also favored by funds. If the second-quarter operations are expected to improve, the stocks are more likely to have longevity.
[Text/Wu Minzhen] The first quarter financial report and April revenue of Taiwan listed companies are coming out one after another. During the peak season, short-term funds will also start to focus on performance-themed stocks, and if the second quarter operation is expected to be upward, the targets will also be attract more market attention.
Looking further, there are many stocks that have achieved the strongest April revenue in history, such as Hon Hai, Yongxinjian, ADATA, Zhending KY, Yingwei, etc. The single-month performance has become the most popular focus in the same period.
Funding highlighted the performance theme. Hon Hai\’s revenue in April was 5,108. 9.6 billion yuan, a monthly increase of 14. 2%, an annual increase of 19%. The revenue of its four major product lines, including computer terminal products, consumer smart products, components and other products, and cloud network products, has experienced both monthly growth and annual growth; cumulative revenue in the first four months One trillion eight hundred and thirty-three. 5.9 billion yuan minus three. all%.
Regarding future prospects, Hon Hai stated that since the second quarter is still the traditional off-season, the visibility of major products entering the transition period between new and old products is approximately equivalent to current market expectations, so the operating outlook for the second quarter is expected to show quarterly and annual growth.
Before Hon Hai\’s legal meeting on the 14th, US foreign investors also issued the latest report, optimistic about Hon Hai\’s supply of AI servers, switches, liquid cooling and other peripheral solutions for Nvidia\’s super chip GB200, which is expected to increase customer penetration and invest in Half-year performance; foreign investors estimate that Hon Hai’s AI revenue will reach 10% this year, and will grow to 16% and 17% in 2025 and 2026 respectively. At the same time, Hon Hai’s target price has been raised from 1,722 yuan to 20%. One yuan.
The increase in memory quotations is also reflected in the operating performance of individual stocks and is associated with the strengthening of the memory group\’s stock prices.
Among them, the consolidated revenue of memory module manufacturer ADATA in April reached RMB 38. 4.8 billion yuan, an increase of 80. 8%; the cumulative revenue in the first four months was 147. 2.9 billion yuan, an annual increase of 57. seven%.
The company said that upstream suppliers are currently actively shifting their production capacity allocation and investment focus to high-bandwidth memory (HBM), coupled with healthy industry inventory levels expected in the second quarter, dynamic random access memory (DRAM) and storage flash memory (NAND Flash). ) contract prices will continue to rise, which is expected to boost gross profit margin growth.
Rising memory prices are helping operations. ADATA also pointed out that the successive launch of AI terminal application products starting from the third quarter is expected to drive more AI demand in the second half of the year and next year. Therefore, upstream suppliers are all accelerating the transition to HBM and DDR5 products. However, currently HBM\’s production difficulty and capacity consumption rate are quite high, so it is difficult to reduce DRAM prices this year with limited capacity supply.
In terms of NAND Flash, although upstream suppliers have gradually returned to profitability and gradually increased production capacity utilization, they are still quite rational about price and production capacity planning. In addition, the recent significant recovery in SSD demand for enterprise and data centers is expected to support the continued rise in NAND Flash prices. And the situation is stable.
In addition, Team Group, a module manufacturer that is leading the memory boom, paid a net profit of 4.4% per share in the first quarter. The one-yuan performance hit a record high in a single season.
The company also pointed out that although the current spot market demand is not very good, there is no possibility of any price reduction in the next two quarters and will increase quarter by quarter. There is at least 15 to 25% room for growth; in addition, the current increase is mostly in DDR5, but DDR4 will wait for it. It will also follow after the inventory is depleted in the second quarter.
Team Group also has a huge inventory of low-priced products. As of the end of the first quarter, the inventory was 56%. 4.3 billion yuan, a quarterly increase of 67%. Of the 85%, DRAM accounts for 70% and NAND accounts for 30%; while 60% of DRAM is DDR5 and 40% is DDR4.
The market expects that under the trend of low-price inventory and rising DRAM selling prices, Team Group\’s second-quarter operations will continue to be strong. Entering the second half of the year, including e-sports and other traditional peak seasons, coupled with the fermentation of the AI ​​PC/NB trend, are expected to further drive the company\’s growth. Volume increases again.
(Full text not completed) Source: Issue 2299 of \”Xiantan Investment Weekly\” For more exciting content, please go to \”Xiantan Investment Weekly\”

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