Minxin shares: MEMS acoustic, pressure, inertial sensor multi-category layout

KJ3222X1-EA1  The company is one of the few domestic enterprises that master the design and manufacturing process capabilities of multi-category MEMS chips, and is committed to becoming a leading MEMS chip platform enterprise in the industry. The company has independent research and development capabilities and core technologies in the existing MEMS sensor chip design, wafer manufacturing, packaging and testing, and can independently design ASIC chips that provide signal conversion, processing or driving functions for MEMS sensor chips, and realize the localization of the entire MEMS sensor production process. The company’s main products include MEMS acoustic sensors, MEMS pressure sensors and MEMS inertial sensors.

In the first three quarters of 2023, revenue grew at a high rate KJ3222X1-EA1  compared with the same period last year, and losses narrowed in Q3. In terms of revenue, the company’s operating income reached 25,907,100 yuan in 2023Q1-Q3, with a year-on-year growth rate of 18.82%, and the company’s strategy of “taking share and reducing inventory” has significant effects. By increasing product shipments and adopting active marketing strategies to increase market share, the company ensures the healthy operation of the supply chain and gradually reduces inventory, thus achieving healthy development in the consumer electronics downcycle.

KJ3222X1-EA1

In terms of net profit returned to the mother, the company’s net profit returned to the mother in Q1/Q2/Q3 was -2,055.44/-3,289.97/ -28.8680 million yuan, and the Q3 loss narrowed by -12.25% from the previous quarter. Affected by geopolitical tensions, the global economic downturn and other factors, the final consumption power is insufficient, the pressure of industry destocking is increased, and the market competition, especially the price competition, is intensified. In the case of poor market conditions, the company based on its own technological research and development advantages, actively respond to challenges, adhere to customer demand-oriented, fully tap the potential of key markets, the company’s overall business situation has improved.

MEMS sensors have a multi-category layout, and the proportion of pressure and inertial sensors has increased year by year. The company adopts a multi-category layout strategy in the layout of MEMS sensor products, and the main products include MEMS acoustic sensors, MEMS pressure sensors and MEMS inertial sensors. Among them, MEMS acoustic sensors contributed the most to revenue, accounting for 88.2%, 81.6%, 79.2% and 68.7% from 2020 to 2023H1, respectively. It is worth noting that as the company’s multi-category layout strategy continues to advance, the proportion of MEMS pressure sensors and MEMS inertial sensors in revenue has shown a significant increase trend.

Industry demand decline, competition intensifies, the company’s profitability pressure. In Q1-Q3 of 2023, the company’s profitability was under pressure, and the gross profit margin and the net profit margin of the company to the mother continued to decline. In Q1-Q3 of 2023, the gross profit margin and the net profit rate of the company to the mother declined to 14.41% and -31.78% respectively. The decline in the company’s gross profit margin and net interest rate is mainly due to the impact of geopolitical conflicts, the global economic downturn and other factors, the industry is in a downward cycle, the industry destocking pressure increases, and the price competition intensifies. KJ3222X1-EA1  The company chooses to implement the strategic idea of “share, reduce inventory”, reduce product prices, and strive to expand market share. We believe that the company is expected to base on the advantages of technology research and development, rely on the multi-category layout strategy, grasp the development opportunities in the new market, and promote the improvement of the company’s performance.