Leading industrial PC maker Advantech Co (研華) on Friday reported record revenue and profit for this year’s first quarter, but said component shortages, as well as COVID-19 lockdowns and logistics constraints in China, would affect its revenue outlook in the second quarter.
“Benefiting from steady recovery from major markets and strong demand for new energy such as electric vehicles, solar and wind power, Advantech continuously outperformed in the first quarter of 2022,” Advantech chief financial officer and Eric Chen (陳清熙), who is also president of general management, said in a statement.
The company said its book-to-bill ratio remained high at 1.36 percent from January to March, and the overall delivery lead time is gradually improving, thanks to improving product sales amid a recovery in global demand.
Photo: CNA
Advantech stands to benefit from smart factory upgrades driven by new infrastructure projects, with robust demand from renewable power and electric vehicle sectors, analysts said.
First-quarter revenue was NT$16.12 billion (US$546.81 million), up 2 percent quarterly and 22.5 percent annually, as the company’s embedded Internet of Things (IoT) group, applied computing group and service-IoT group reported strong sales in the first quarter, while the cloud-IoT group saw sales slightly decline partly due to component shortages, Advantech said.
North America and Europe registered sales growth of 32 percent and 31 percent from a year earlier respectively, while emerging markets recorded 70 percent rise during the three-month period, it said.
Net profit last quarter totaled NT$2.57 billion, up 13 percent from the previous quarter and 34 percent higher than a year earlier, it said.
Gross margin was 38.2 percent last quarter, compared with 38.11 percent in the previous quarter, but down from 39.58 percent a year earlier.
Earnings per share were NT$3.32, compared with NT$2.93 the previous quarter and NT$2.48 a year ago, company data showed.
Given a notable demand recovery, the company had planned to expand capacity by 30 percent by the end of last year, with new capacity likely to come online next year at the earliest.
Second quarter demand is expected to be solid based on new business opportunities in applications related to factory automation and energy conservation.
“However, the impacts from component shortages, the Kunshan lockdown last month and logistics constraints remain, which might affect second-quarter revenue by 8 percent to 10 percent,” as shipments would be delayed until later this year, Chen said.
“Advantech will leverage our capacities in Linkou [Taiwan] and Kunshan [China] to minimize overall impacts and maintain operational stability,” he said.
SEMICONDUCTORS: The firm has already completed one fab, which is to begin mass producing 2-nanomater chips next year, while two others are under construction Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, plans to begin construction of its fourth and fifth wafer fabs in Kaohsiung next year, targeting the development of high-end processes. The two facilities — P4 and P5 — are part of TSMC’s production expansion program, which aims to build five fabs in Kaohsiung. TSMC facility division vice president Arthur Chuang (莊子壽) on Thursday said that the five facilities are expected to create 8,000 jobs. To respond to the fast-changing global semiconductor industry and escalating international competition, TSMC said it has to keep growing by expanding its production footprints. The P4 and P5
DOWNFALL: The Singapore-based oil magnate Lim Oon Kuin was accused of hiding US$800 million in losses and leaving 20 banks with substantial liabilities Former tycoon Lim Oon Kuin (林恩強) has been declared bankrupt in Singapore, following the collapse of his oil trading empire. The name of the founder of Hin Leong Trading Pte Ltd (興隆貿易) and his children Lim Huey Ching (林慧清) and Lim Chee Meng (林志朋) were listed as having been issued a bankruptcy order on Dec. 19, the government gazette showed. The younger Lims were directors at the company. Leow Quek Shiong and Seah Roh Lin of BDO Advisory Pte Ltd are the trustees, according to the gazette. At its peak, Hin Leong traded a range of oil products, made lubricants and operated loading
Citigroup Inc and Bank of America Corp said they are leaving a global climate-banking group, becoming the latest Wall Street lenders to exit the coalition in the past month. In a statement, Citigroup said while it remains committed to achieving net zero emissions, it is exiting the Net-Zero Banking Alliance (NZBA). Bank of America said separately on Tuesday that it is also leaving NZBA, adding that it would continue to work with clients on reducing greenhouse gas emissions. The banks’ departure from NZBA follows Goldman Sachs Group Inc and Wells Fargo & Co. The largest US financial institutions are under increasing pressure
TRENDS: The bitcoin rally sparked by US president-elect Donald Trump’s victory has slowed down, partly due to outflows from exchange-traded funds for the token Gold is heading for one of its biggest annual gains this century, with a 27 percent advance that has been fueled by US monetary easing, sustained geopolitical risks and a wave of purchases by central banks. While bullion has ticked lower since US president-elect Donald Trump’s sweeping victory in last month’s election, its gains this year still outstrip most other commodities. Base metals have had a mixed year, while iron ore has tumbled, and lithium’s woes have deepened. The varied performances highlight the absence of a single, over-riding driver that has steered the complex’s fortunes, while also putting the spotlight
RSS