As the leader of CIS, Weir has been placed in the spotlight since its performance stalled in 2022. The third quarterly report of 2023 released by the company recently shows that the revenue in the first three quarters decreased1.96% year-on-year; The net profit of returning to the mother decreased by 82.86% year-on-year. Operating income in the third quarter increased by 44.35% year-on-year; Net profit increased by 279.61%; Net profit after deducting non-profit increased by 206.25% year-on-year.
Although the performance in the first three quarters still declined, there has been an obvious positive trend in the third quarter, which not only increased substantially year-on-year, but also improved greatly compared with the previous quarter. In the third quarter, the company's net profit turned positive from the loss in the second quarter, with revenue increasing by 37.58% and net profit increasing by 570.7%. Will's products are mainly used in the field of consumer electronics represented by smart phones and computers. In the third quarter of the traditional peak season, with the release of a number of new terminal brands, the demand for upstream chip products has also picked up.
Third quarter performance recovery
From the perspective of income composition, Will's main business is divided into two parts: semiconductor design and semiconductor distribution, in which semiconductor design and sales are the main sources of income, accounting for more than 80% in the first half of the year. Since 2022, due to weak downstream demand, Will's performance has declined, which has aroused widespread concern in the market. As a chip design company, Weir's products are widely used in consumer electronics, security, automobiles, medical care, AR/VR and other fields.
At that time, the company said that the decline in terminal sales also made the stocking strategy of downstream customers more conservative, and the time to market for new products was delayed to some extent. During the reporting period, the above factors brought great interference to the company's various businesses, and the income of products in some markets declined.