Recently, a number of digital media reported that Wingtech (SH600745, closing price 62.51 RMB, market value 77.9 billion RMB) Kunming factory will OEM Apple MacBook, triggering market concerns. The Daily Economic News reporter contacted the company’s recruiter today (Aug. 27), who said that Kunming Wingtech Communications Co. The reporter also contacted Wingtech Technology, the company insiders said that no relevant information can be disclosed.
For the foundry rumors, investors’ reactions are mixed: some investors believe that the semiconductor business is the core of Wingtech’s profitability, and its product integration business and optical module business are still loss-making.
As early as mid-August, Kunming Labor and Employment Service Bureau and other official agencies as well as Kunming Information Port and other local media in Kunming have released news that Kunming Wingtech “needs to recruit 6,000 people for the second phase of production”.
Recruitment information. Image source: WeChat public screenshot
Qixinbao shows that Kunming Wingtech was established in April 2019 with a registered capital of 100 million yuan, a wholly owned subsidiary of Wingtech.
Previously, Wingtech’s invested in Kunming Smart Manufacturing Industrial Park; in late July 2021, Wingtech’s Kunming Smart Manufacturing Industrial Park was officially put into operation, which includes smart terminal products such as cell phones, tablets, laptops, TVs, remote controls, headphones and IoT. According to Wentech, “(Kunming Smart Manufacturing Industrial Park) serves customers who are among the top five global consumer electronics brands.”
According to the data, the overall area of Kunming Smart Manufacturing Industrial Park of Wingtech Technology is more than 640 mu, which is built in two phases, of which the second phase covers about 469 mu, and is a comprehensive park integrating office area, production and supporting area, storage and transit area, staff life and public facilities.
Kunming Wingtech’s sudden recruitment spree, combined with some market rumors, has triggered heated discussions in the market.
Some media reported on August 26 that Wingtech has got the first MacBook assembly order from Apple and Wingtech’s Kunming factory will OEM MacBooks for Apple.
On August 27, the Daily Economic News reporter contacted the recruiter of Kunming Wingtech for the reason of applying for a job, he said the company is indeed recruiting a lot of people, the company is also doing assembly and packaging, now recruiting people for the department is mainly doing Apple’s products, this recruitment is mainly for the second phase of the project to prepare for production, but the second phase is still racking lines, the personnel will come in to first assemble Bluetooth headset, set-top box these. “Assembly Apple MacBook may have to wait until next month because the production line is still in the debugging stage.” She said.
However, the above news could not be confirmed by Wingtech Technology. The reporter had contacted Wingtech on August 27, the company insiders said that there is no relevant information to disclose.
For Kunming Wingtech’s location advantages, senior industrial economic observer Liang Zhenpeng told the Daily Economic News reporter, that Kunming’s labor costs are still relatively low, one-third lower than coastal areas. China has a larger consumer market and a better supply chain, which is not an immediate substitute for other countries such as Vietnam. “If you want to OEM, you must buy a variety of components and raw materials, which are all available in China. In other countries may have this problem, (may) to Vietnam, India some raw materials can not buy, so China’s parts supply is more adequate.”
It is worth mentioning that the investors of Wingtech Technology have different comments on the above rumors. Some investors believe that the third quarter is the peak season of consumer electronics, and the listed company’s performance may be able to come to exceed expectations; others believe that this is actually old news, no need to over-interpret; even some investors said: “(Wingtech Technology) all rely on the semiconductor in making money, the more terminal business, the more losses”.
Looking back on history, Wingtech Technology announced in March this year that the company’s cooperation with specific customers outside of the smart home project officially began mass production and achieve regular shipments, the total amount of project cooperation is expected to be about 5 billion RMB. In June, Wingtech announced again that the company’s cooperation with overseas specific customers in the product integration business is progressing in an orderly manner, and recently the company’s computer project with overseas specific customers has passed customer verification and the products started to ship.
From the situation in the first half of the year, Wingtech is indeed relying on the semiconductor business to pick up the slack. In the first half of the year, the company’s revenue was 28.496 billion RMB, up 15.05% year-on-year; net profit was 1.182 billion RMB, down 4.11% year-on-year. Among them, the company’s semiconductor business achieved an operating income of 7.659 billion RMB, an increase of 13.72%, a business gross margin of 41.97%, to achieve a net profit of 1.726 billion RMB, an increase of 31.72%; product integration business operating income of 19.418 billion RMB, an increase of 7.82%, gross margin of 8.52%, a net loss of 216 million RMB; in addition, its optical module, In addition, its optical module business also suffered a net loss of RMB 0.37 billion.
In 2015, Wingtech Communications successfully borrowed the shares of Zhongyin, after which the company changed its name to Wingtech Technology. 2019, Wingtech Technology took a controlling stake in Ansys Semiconductor, cutting into the semiconductor field. 2021 March, Wingtech Technology announced the purchase of 100% equity interest in Guangzhou Delta Imaging Technology Co. (hereinafter referred to as Guangzhou Delta Imaging Technology Co. The transaction was substantially completed in June last year.
(SZ002456, closing price 5.90 RMB, market value 19.2 billion RMB), which is responsible for supplying camera modules to Apple; through the above acquisition, Wingtech was also able to enter Apple’s supply chain. According to Wingtech’s 2021 annual report, Guangzhou Delta reported a net profit loss of 275 million RMB; in the first half of this year, Guangzhou Delta reported a net profit loss of 13.870 million RMB.
Combined with the news released by Wingtech Technology in the second half of last year, such as “the company has confirmed the mass production plan with specific overseas customers” and “as of December 1, 2021, the first batch of mass production products have been shipped and the products have entered the batch shipment stage”, Guangzhou Delta The supply to Apple may be recovering rapidly.
