Foreign investment supports MediaTek! The target price was raised unanimously, and Citi shouted a sky-high price of NT$1728

Jiwei network news, according to Taiwan media reports, MediaTek 2021 financial report paid a bright report card, is expected to 2024 potential market reach 140 billion US dollars, the next 3 years revenue compound annual growth rate will reach 15%, three foreign investors have shouted to buy, raise the target price, Citi even gave a sky-high price of NT$1728.

Citi believes that smartphone inventory is rising, and overall shipments have downside risks, but it seems a bit redundant to worry about rising supply chain costs and weak demand for smartphones, affecting continued profits.

Citi pointed out that MediaTek has good conditions to expand net profit margins by improving its product mix, taking advantage of tight supply and improving operational efficiency, and its revenue is expected to reach $20 billion in 2022, writing a new milestone, while the non-smartphone business will be the main growth driver of MediaTek in 3 years.

Goldman Sachs believes that although wafer supply continues to be limited, MediaTek is expected to expand its net profit margin this year through incremental foundry to maintain its growth momentum, coupled with rising prices and product structure towards high-value/high-end products.

Although the market is worried about the saturation of China's 5G smartphone market, Goldman Sachs and Damo believe that other overseas markets are growing strongly, and the penetration of 5G to other emerging markets should be the growth driver. In view of the overall potential market expansion and the continued benefit of MediaTek's technology transfer in the field of smartphones and non-smartphones, Goldman Sachs raised its target price to NT$1,650.

Damo said that MediaTek's revenue and net profit margin exceeded expectations, with gross profit margin of 49.6% in the fourth quarter of 2021 and gross profit margin expected to exceed 50% in 2022. If the stock price is affected by the correction of China's smartphone inventory, it is recommended to establish a long-term part.

Damo stressed that MediaTek is a long-term growth value stock that can surpass other companies in the smartphone semiconductor supply chain through bargaining power and the value of the smartphone chip group, so it has raised the target price to NT$1380. (Proofreading/Nori)