Global wafer: FY19 revenue/earnings may just slightly increase YoY

Global wafer (6488-TW) held a shareholders meeting today on June 25th. The chairman Doris Hsu (徐秀蘭), told that its 2Q19 revenue/earnings may decline slightly QoQ. And, there are still various uncertainties in the 2H19. The company was expecting that its FY19 revenue/earnings may significantly increase YoY. However, it seems that the growth magnitude of FY19 revenue/earnings may be smaller than the expectation.

Hsu said that its 2Q19 revenue/earnings remains healthy, but there is still some pressure, and may cause 2Q19 revenue/earnings to decline QoQ. In addition, she pointed out that there is some pressure on the quantity and are still various uncertainties in the market.

Hsu holds a positive view toward FY19’s revenue/earnings. The company was expecting that its FY19 revenue/earnings may significantly increase YoY. However, it seems that the growth magnitude of FY19 revenue/earnings may be smaller than the expectation.

Part of the reason is that the inventory pull-in momentum of the clients in the company's investment in the Shanghai 8” fab, which is in cooperation with the Japanese equipment company Ferrotec, decelerated due to the US-China trade war. Nevertheless, its FY19 revenue/earnings is expected to stay on growth track.