Ninestar Forecasts Strong Growth in Q1

Ninestar Forecasts Strong Growth in Q1

According to cif.net, Ninestar is foreseeing an increase in net profit between 493.9% and 790.87% in the first quarter of 2021 (Q1, 2021).

Ninestar’s net profit is expected to reach 180 -270 million RMB (US$ 27.67-41.1 million) during the reporting period.

The main reasons for such a change are:

• As the global vaccination program continues to accelerate and the threat of the COVID-19 epidemic eases significantly in the first quarter, the global printer market has shown a trend for growth. The demand for printer consumables has correspondingly increased too. Ninestar’s general printer consumables business and Apex Microelectronics business (both sales and sales revenue) have all showed varying degrees of growth.

Printer business

Lexmark printer business operation has improved during Q1, with a significant increase in operating performance from the previous quarter. In Q1, the overall sales of Lexmark printers are expected to increase over 15% year-over-year.

Consumables

With the improvement of the COVID-19 beyond China, demands for printer consumables are released. As a result, Ninestar consumables sales and revenue kept on growing. Sales increased by more than 30% year-over-year. Meanwhile, the company is accelerating the eCommerce channel construction outside of China as well as hiring celebrities to endorse the expansion of its eCommerce influence. Therefore, Ninestar eCommerce beyond China has grown significantly,

Apex Microelectronics

Apex increased prices for some products, as it is the trend in the semiconductor in 2021 and OEM firmware updates made it more difficult to develop and deliver chip products. Apex compatible printer chip sales and revenue increased by more than 20% year-over-year. Given that the industry is accelerating integration, Apex has supply chain advantages in upstream suppliers, automation plants and eCommerce, which conducive to the increase of Apex’s chip market share ratio and profit. Apex new chip products and the sales of its key products contributed to the steady growth in performance.

Apex MCU chips are in strong demand under the environment of tight wafer production capacity and domestic substitution. The sales volume in the first quarter is expected to increase significantly year-on-year; Jihai’s 32-bit industrial-grade general-purpose MCU products have successfully entered leading home appliances and industrial control companies and well-recognized in the new energy industry. Authentication chips are recovering due to market demand, and sales of related products of the company are also climbing.

• Derivate financial products purchased by the company rendered 63 million RMB (US$ 9.69 million) profit.

Related:

• Ninestar Reports Results for First Half of 2020
• Founding Ninestar CEO Shares Insights in Rare Appearance
• Ninestar Claims to Be Aftermarket Patent Leader
• Canon and Ninestar Settle Over US Cartridge Dispute
• Ninestar Wins Patent Dispute Again
  

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