The semiconductor industry chain is long, and the stock of finished products of the chip includes three parts, the inventory of the chip design company, the inventory of the distributor, and the inventory of the terminal application manufacturer. Since last year, the global semiconductor industry has experienced a severe decline in the economy, and end-users are cautious in stocking. Most of the manufacturers in all segments of the industry chain are affected by this, and their performance has shrunk dramatically.

However, from the performance forecast, the performance of A-share semiconductor distributors has not been affected by this.Among them, the performance of Shenzhen Huaqiang has increased substantially. The performance of Liyuan Information and Yingtang Zhishen has slightly increased, and Runxin Technology has experienced a serious decline.

Performance growth, business status is good?

From the perspective of the circulation of the IC industry chain, there are mainly three product transfer modes: the first one is the original factory direct sales, which is directly supplied by upstream IC design manufacturers to downstream electronic product manufacturers; domestic IC manufacturers currently mainly exist in this way. The sales model, and foreign IC manufacturers generally only use this model with large customers.

The second is distribution, which includes authorized distribution and independent distribution. Authorized distribution is the sale of IC products to upstream IC design manufacturers by authorized distributors including Arrow, Dalian University and Shenzhen Huaqiang and Liyuan Information, and then sells them to downstream electronics manufacturers and provides products and products in the process. Technical Services.

Independent distribution is the sale of IC products by independent distributors to downstream electronics manufacturers.Independent distributors generally benefit from the information advantage of buying and selling inventory components when the market is in an information asymmetry. According to industry insiders, Shenzhen Huaqiang North has gathered more than 20,000 independent distributors.

Under normal circumstances, distributors need to first purchase IC products and then sell them to downstream customers to earn the difference. This will result in higher inventory and accounts receivable. In addition, the current component market generally uses the US dollar quotation, and the impact of exchange rate changes on distributors should not be underestimated.

According to public data, in addition to Shenzhen Huaqiang's inventory and accounts receivable accounted for 35% of its total assets, Yingtang Zhikong, Liyuan Information, Runxin Technology's inventory and accounts receivable accounted for 45% of its total assets. %. Such a high percentage of the impact of changes in its suppliers and customers on distributors is also fatal.

Cogobuy has been rumored to be "losing the rights of Broadcom", resulting in a significant discount on its stock price and performance; Runxin Technology has increased its bad debts by 8.48 million due to stepping on Lele, Fibonacci 2018; "Golden, has made provision for bad debts of more than 60 million yuan.

Even if it is necessary to bear all kinds of risks from the outside world, the distributor's gross profit margin is extremely low.According to the 2018 Annual Report, the gross profit margin of the General Assembly is only 4.33%, while Arrow's gross profit margin is as high as 11.82%, and Avnet's gross profit margin is 12.4%. The international first-tier semiconductor distributors' gross profit margin is not high, as is the domestic semiconductor distributors. Yingtang Zhikong and Liyuan Information have a gross margin of 7%, Runxin Technology's gross margin is 10%, and Shenzhen Huaqiang's gross margin is 16%.

Who will stand out from the industry?

In view of the role of semiconductor distributors in the industry chain, semiconductor distributors are greatly affected by market factors. The current electronics industry is still in the stage of major reshuffle, and the survival of the fittest has led to the reshuffling of the distributor industry.

Distributors mainly rely on expanding the product line's coverage capability and spot reserve capacity to influence the market to achieve value, and through acquisition can achieve product coverage as soon as possible. In recent years, capital has been deeply involved in the distribution industry, operating frequently, and the industry has entered a period of rapid integration.Shenzhen Huaqiang, Liyuan Information, Yingtang Zhikong, Runxin Technology, etc. have acquired frequently in recent years. Through the complementary advantages of capital and resources of listed companies and resource integration, they have positive effects on the performance of both parties.

Since the beginning of 2015, Shenzhen Huaqiang has achieved rapid improvement in performance through the acquisition of various types of excellent electronic component distributors such as Xianghai Electronics, Jieyang Xunke, Pengyuan Electronics, Qinuo Technology, Xinfei Electronics and Capital Holdings Hong Kong Qingzhuang. The products cover a comprehensive range, all-round development of online and offline, and the development path of international distribution giants Arrow, United University, Avnet, etc. is more consistent, apparently moving towards the goal of domestic distribution.

Also through the capital advantage to enlarge and strengthen the Yingtang Zhikong accident, in 2015, Yingtang Zhikong became a local component distribution giant through the acquisition of Huashanglong, Shenzhen Baijian and Shenzhen Haiweisi. In recent years, Yingtang Zhikong has accelerated the pace of outreach mergers and acquisitions, and has earned the income of Yihai Nengda, United Chuangtai, Geelytong and Qianhai Shouke, and it has achieved substantial growth in performance. The goal of the Asia Pacific leading company in the distribution industry.

Liyuan Information entered the first echelon of component distribution with the acquisition of Dingxin Infinity, Nanjing Feiteng and Wuhan Patai. On the road of becoming bigger and stronger, Liyuan Information also extends to technology distribution and actively represents domestic chips. In addition, since 2015, Liyuan Information has taken advantage of the company's distribution channels to start with EEPROM and SJ-MOSFET. The self-developed chip has already started small-volume shipments and embarked on the road from distribution to the original factory. It is understood that a large number of distributors in the market are currently undergoing transformation.

While the first-line distributors are actively competing for the leading position, Runxin Technology focuses on the communication connection, RF and sensing fields. The products are mainly based on wireless connection chips, RF components and sensor chips, and are part of the shares of CLP Luolai and Hong Kong Bosda. The acquisition is also expanding within the segmentation area. Runxin Technology believes that providing more IC solutions and technical services for electronic product manufacturers is an inevitable trend in the development of China's domestic IC distribution industry. Obviously, big and full is not the pursuit of Runxin Technology, and technology distribution is the development of Runxin Technology.

In the chaos, each distributor wants to seize the market from it, and accelerates its share by relying on its own competitiveness to achieve sustained growth. The development route chosen by each company is considered to be remarkable, but it is yet to be seen who can stand out during the industry reshuffle.