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Record MediaTek performance after MStar Acquisition

Record MediaTek performance after MStar Acquisition

The benefits of mobile phone chip manufacture MediaTek’s (2454) acquisition of MStar Semiconductor are demonstrated with a record high consolidated revenue of NT$ 15.73 billion for February. Institutional investors forecast continued optimism for MediaTek’s operational outlook.

MediaTek’s acquisition of MStar was rife with setbacks and only formally acquired MStar in February of this year. Benefiting from the injection of MStar’s business, MediaTek’s consolidated revenue for February jumped to NT$ 15.73 billion. This represents monthly growth of 22.48%, substantial growth of 158% year on year, and a record high.

Benefiting from the acquisition of MStar, MediaTek expects consolidated 1st quarter revenue to reach between NT$ 41.38 billion and NT$ 44.57 billion, quarterly growth between 4% and 12%, and an EPS of approximately NT$ 5.38 to NT$6.57.

According to internal MediaTek forecasts, smartphone chip shipments in Q1 will slide to 65 million units from 70 million units in Q4 of last year due to fewer working days. However, the total number of units shipped this year will exceed 300 million.

In addition to the gradual appearance of operational benefits linked to the acquisition of MStar, whether or not MediaTek also achieves new operation highs will continue to receive the undivided attention of the market.

MediaTek shares closed Thursday at NT$ 452, down NT$ 4.00, or 0.88%, with a volume of 9,227,515 shares traded.


Updated : 2020-12-01 02:03 GMT+08:00