Keywords: Electronic downstream customers, Dongcheng Pharmaceutical API
Summary: Previously affected by the weak demand for consumer electronics , the passive components industry has accelerated inventory adjustments and prices have been at low levels. According to Taiwan Economic Daily, as the issue of long and short materials for IC parts has been resolved, customers have recently begun to replenish inventory, and order demand has recovered, driving orders from major passive component manufacturers to pick up.
Electronics Previously affected by weak demand for consumer electronics, the passive component industry accelerated inventory adjustments and prices were already at low levels. According to Taiwan Economic Daily, as the problem of length and short material of IC parts has been resolved, customers have recently begun to replenish inventory, and order demand has recovered, driving orders from major passive component manufacturers to pick up. Due to the Spring Festival, the number of working days will be reduced in the first quarter of 2023, causing the replenishment wave to be advanced to December this year and January next year. At the same time, passive component manufacturers said that as the epidemic has slowed down, dealers have the courage to place orders, and dealers are no longer pessimistic about the first half of next year. Huaxinke, a major passive component manufacturer in Taiwan, said that the order situation has indeed improved recently, with urgent orders being the main ones. It is judged to be short-term demand after customers collect the materials. In terms of applications, urgent orders are mainly for network communications , servers, industrial control and automotive applications. Yageo expects that standard products will continue to be adjusted until Q1 or Q2 next year, and niche products will have solid momentum. Overall, passive components are the category that started the downward adjustment earlier in this semiconductor cycle. After continuous inventory reduction, the current industry prosperity has basically bottomed out. According to Wind data, Taiwan's MLCC revenue in October saw a positive year-on-year growth rate of and , reaching 2.9%. Yageo's revenue growth fell to single digits from July to September this year, to 6.5%, 3.8%, and 3.8% respectively; from October to November, it rebounded to 13.9% and 12.9% year-on-year. Looking forward to 2023, although the prospects for demand recovery in the consumer electronics market remain unclear, demand momentum such as automotive MLCCs remains strong. Murata, Kyocera, Yageo and other manufacturers are bucking the trend and expanding production or making acquisitions at the bottom of the current industry boom. They are still optimistic about the future demand for passive components in incremental markets such as data centers and smart cars. Major manufacturers have begun to reserve production capacity and competitiveness for the next wave of business cycles.
Dongcheng Pharmaceutical's operating income has grown steadily, and the nuclear medicine business is expected to become a new competitiveness It covers the three major businesses of raw materials, preparations, and nuclear medicine, integrating drug research and development, production, and sales into one, with nuclear medicine as the new core competitiveness. 's operating income continued to grow from 2017 to 2021. In the first three quarters of 2022, operating income was 2.741 billion, a year-on-year decrease of 1.93%; net profit attributable to the parent company was 330 million yuan, and increased by 26.17% year-on-year.
