Industrial computer maker Ennoconn Corp (樺漢科技) yesterday voiced confidence that revenue growth would remain robust this year based on the orders it has secured.
Revenue last year increased 12.4 percent to NT$121.64 billion (USS$3.8 billion), the subsidiary of Hon Hai Precision Industry Co (鴻海精密) said in a statement after an earnings conference.
Ennocon, which provides hardware solutions for point-of-sale, banking automation, kiosk, lottery and industrial automation systems, said that orders on hand had exceeded NT$140 billion, thanks to rapid developments in artificial intelligence (AI), semiconductors, robots and electric vehicles.
Photo courtesy of Ennoconn Corp
With clear order visibility for this year, the company aims to maintain a book-to-bill ratio of about 1.1 percent to 1.2 percent, it said. Figures above 1 percent indicate increasing demand.
In addition, Ennoconn plans to expand its Ennoconn solution as a service (ESaaS) business in light of the huge opportunities related to AI applications, semiconductors, robots and new energy installations, it said.
ESaaS products combine software and hardware, focusing mainly on digital transformation, AI, energy management, information security, and environmental, social and corporate governance (ESG) solutions.
ESaaS sales last year surged 74 percent year-on-year to NT$11.5 billion, accounting for 9.45 percent of the company’s total sales, Ennoconn said, projecting that ESaaS sales this year would increase by a double-digit percentage.
As Ennoconn in January acquired a 59.4 percent stake in Katek SE, a German company that offers smart industry solutions and provides remote control, safety and remote maintenance services in the energy field, the company expects the deal — if completed in the first half of the year — to help transform its ESaaS operations into a high-margin business and drive its overall earnings growth.
Ennoconn chairman Steve Chu (朱復銓) said that the company’s revenue and gross profit in the first quarter of this year were better than a year earlier and he is optimistic that full-year revenue, gross profit and net income would all showed marked growth from last year.
Propelled by the company’s three major units — design and manufacturing, systems integration and brand business — net profit last year jumped 73.2 percent year-on-year to NT$2.26 billion, while operating profit soared 68.8 percent to a record NT$5.21 billion, Ennoconn said.
Earnings per share were NT$19.01, it said.
Gross margin improved 1.3 percentage points to 19.4 percent and operating margin rose 1.5 percentage points to 4.3 percent last year, it said.
The company’s board of directors on Friday proposed distributing a cash dividend of NT$11.41 per share, implying a payout ratio of about 60 percent.
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