Winbond is catalyzed by order-transfer effect from Japan-Korea Impasse

Winbond (2344-TW) held an investors conference today on July 26th. The general manager Dong-Yi Zhan (詹東義) told that since the market demand is robust, Winbond may have bottomed. In 3Q19, the capacity is expected to be fully utilized and its 2H19 revenue/earnings may increase HoH.

Winbond's 2Q19 net profit was NTD626mn (+11.33% QoQ, -78.56% YoY) with EPS of NTD0.12. The revenue derived from DRAM and Flash has reached 50% respectively. Its 1H19 net profit was NTD877mn (-76.48% YoY) with EPS of NTD0.22.

In 3Q19, Zhan told that since the market demand is robust, Winbond may have bottomed. The capacity is expected to be fully utilized. And, its 2H19 revenue/earnings may increase HoH.

Regarding the trade war between Japan and South Korea, Zhan said that the industry is entering its peak season. Since the shipment from Korean companies remain uncertain, global major clients have asked Winbond to offset the supply in 2H19.