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Raydium Semiconductor Reports Q3 Revenue Growth Despite Market Challenges

r 3592.TW Mid and Small Cap 2000
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Raydium Semiconductor, a prominent display driver Integrated Circuit (IC) manufacturer, has released its third-quarter consolidated financial report. The company reported a consolidated revenue of 5.02 billion yuan for the third quarter, reflecting a 5.7% increase compared to the previous quarter and an impressive 28.6% surge year-on-year (YoY). Although certain profit margins saw fluctuations, Ruiding remains optimistic about the resilience of its AMOLED mobile phone product line, foreseeing continued growth with the introduction of new products, customers, and models.

Looking ahead to the fourth quarter, Ruiding acknowledges the customary slowdown in demand for upstream components. This is particularly true for large-size and automotive driver ICs. However, the company anticipates mitigating the quarterly decline through the launch of new AMOLED mobile phone products. This strategic move is expected to bolster the overall revenue in the fourth quarter. Moreover, Ruiding envisions surpassing the performance of the first half of this year and aims to achieve its second-half target from the previous year.

Chairman Huang Yuguo highlighted that the third-quarter revenue across various product lines demonstrated moderate growth in line with expectations. While the demand for large-size products, particularly for TVs, exhibited a weakening trend, it was offset by inventory replenishment and increased demand for IT products. Consequently, the overall large-size revenue maintained steady growth. Additionally, the demand for small and medium-sized AMOLED products experienced a slight uptick, with AMOLED’s penetration rate in mobile phones continuing to rise. Wearable products demonstrated steady performance, and automotive products continued to gain traction.

The display driver IC segment experienced a higher growth rate this quarter compared to large-sized and small- to medium-sized products. This surge can be attributed to a temporary recovery in the automotive market and pre-holiday inventory preparation. However, the automotive market’s trajectory remains subject to ongoing observation. Notably, timing control and power management ICs also showed slight growth in tandem.

For the first three quarters, Ruiding reported a consolidated revenue of 13.43 billion yuan, indicating a YoY decrease of 27.9%. The overall gross profit margin saw a YoY decrease of 14.2%, settling at 28.4%. Operating net profit recorded 860 million yuan, reflecting a YoY decrease of 72.8%, while after-tax net profit stood at 1.03 billion yuan, marking a YoY decrease of 70.3%. Earnings per share for the period were reported at 13.58 yuan.

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