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  "documentTitle": "Monolithic Power Systems (MPWR)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2019-10-09 00:00:00",
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  "notes": "The slide uses primary source interviews with distributors to contradict or contextualize public financial reporting.",
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      "text": "“We expect sales to be down by about 15%,” said one distributor that sells about $45m in electronic components annually. “This year the consumer products market is very poor. Huawei’s orders are down... ZTE’s orders are also down... The 2018 backlog is pretty intense, so this year’s sales will drop.”",
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      "text": "For 2019, Distributors Were Uniformly Negative: Though about half said that they expected sales to be roughly flat or to grow a little bit. Most expected sales declines but did not predict by how much.",
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      "text": "To understand sales trends this year and last, we interviewed various distributors that operate in and around Monolithic's industry. Public Chinese tax filings for three of the distributors can be obtained. Almost all saw strong sales growth in 2018, but many expect flat to declining sales in 2019. The average growth in China for 2018, based on the financial statements obtained, was around 18%. This compares with 30% reported revenue growth in China by MPWR for 2018. The distributors said growth came mostly from new customers. The growing segments named were: Security products and storage, Automotive, Camera lenses for mobile phones and computers. One distributor said sales had declined in 2018 by 20-25% because of volatility in prices of end-user products due to the U.S.-China trade frictions. For 2019, Distributors Were Uniformly Negative: Though about half said that they expected sales to be roughly flat or to grow a little bit. Most expected sales declines but did not predict by how much. They blamed trade tensions and declining Chinese consumption. Some sectors at risk: Chips supplied to set-top boxes, Consumer electronics, especially mobile phones, are weak, In low-end electrical components, like plug converters, price competition is very intense.",
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      "text": "\"We expect sales to be down by about 15,\" said one distributor that sells about $45m in electronic components annually. \"This year the consumer products market is very poor. Huawei's orders are down, and that directly affects my customers and indirectly drags down our sales. ZTE's orders are also down. . . A lot of our customers sell to the U.S. The 2018 backlog is pretty intense, so this year's sales will drop.\" — China Market Distributor",
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      "text": "1) Market reports are that Huawei will lose $30bn of revenue (source)",
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      "text": "Market Color From China Distributors",
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