REBOUND IN DEMAND:
The company stands to benefit from smart factory upgrades, infrastructure projects and renewable energy sectors, analysts said.
By Chen Cheng-hui / Staff Reporter
Leading industrial PC maker Advantech Co (研華) reported record revenue and profit for the first quarter of this year on Friday, but said component shortages, as well as COVID-19 lockdowns and logistical constraints in China, would affect its second-quarter revenue outlook.
“Benefiting from a steady recovery in major markets and strong demand for new energies such as electric vehicles, solar and wind power, Advantech has continuously outperformed in the first quarter of 2022,” said Advantech’s Chief Financial Officer. and Eric Chen (陳清熙), also chairman. of the general management, said in a press release.
The company said its orders-to-bills ratio remained high at 1.36% from January to March, and the overall delivery time was gradually improving, thanks to improved product sales amid a recovery in global demand.
Advantech is expected to benefit from smart plant upgrades through new infrastructure projects, with strong demand from the renewable energy and electric vehicle sectors, analysts said.
First-quarter revenue was 16.12 billion Taiwan dollars (546.81 million US dollars), up 2% quarterly and 22.5% annually, as the group The company’s integrated Internet of Things (IoT), Applied Computing Group and IoT Services Group reported strong sales in the first quarter. , while the cloud-IoT group saw sales decline slightly in part due to component shortages, Advantech said.
North America and Europe saw sales growth of 32% and 31%, respectively, year-on-year, while emerging markets were up 70% in the three-month period , he specified.
Net profit for the last quarter totaled NT$2.57 billion, up 13% from the previous quarter and 34% from a year earlier, it said.
Gross margin was 38.2% last quarter, down from 38.11% the previous quarter, but down from 39.58% a year earlier.
Earnings per share were NT$3.32, compared to NT$2.93 the previous quarter and NT$2.48 a year ago, according to company data.
Given a notable recovery in demand, the company had planned to increase capacity by 30% by the end of last year, with new capacity likely to come online next year at earlier.
Demand in the second quarter is expected to be strong due to new business opportunities in applications related to factory automation and energy conservation.
“However, the impacts of component shortages, the Kunshan lockdown last month and logistical constraints remain, which could affect second quarter revenue by 8% to 10%,” as shipments would be delayed until later. this year, Chen said.
“Advantech will leverage our capabilities in Linkou [Taiwan] and Kunshan [China] to minimize overall impacts and maintain operational stability,” he said.
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