Advantech profits soar – Taipei Times

Back in order:
Analysts said the company is expected to benefit from upgrades to smart factories, infrastructure projects and renewable energy sectors

  • By Chen Qinghui / Staff Reporter

Leading industrial computer maker Advantech (研) on Friday reported record revenue and profit for the first quarter of this year, but said component shortages, as well as the COVID-19 shutdown and logistical restrictions in China, will impact its second-quarter revenue outlook.

“Benefiting from a steady recovery from key markets and strong demand for new energy such as electric vehicles, solar and wind energy, Advantech has consistently outperformed in the first quarter of 2022,” Advantech Chief Financial Officer Eric Chen (), who is also president of general management, said in a statement. .

The company said the book-to-invoice ratio remained high at 1.36 percent from January to March, and overall lead time was gradually improving, thanks to improved product sales amid a rebound in global demand.

Photo: Cyprus News Agency

Analysts said Advantech will benefit from smart factory upgrades led by new infrastructure projects, with strong demand from the renewable energy and electric vehicle sectors.

First-quarter revenue was NT$16.12 billion (US$546.81 million), up 2 percent quarter-on-quarter and 22.5 percent year-on-year as the company’s Internet of Things (IoT) group, Applied Computing group and IoT services group reported strong first-quarter sales While the cloud-IoT group saw a slight drop in sales, in part due to a shortage of components.

North America and Europe recorded sales growth of 32 percent and 31 percent from the previous year, respectively, while emerging markets recorded a rise of 70 percent during the three-month period, she said.

Total net profit for the fourth quarter was NT$2.57 billion, up 13 percent from the previous quarter and 34 percent higher than a year earlier.

Gross margin was 38.2 percent last quarter, compared to 38.11 percent in the previous quarter, but down from 39.58 percent a year earlier.

The company’s data showed that earnings per share were NTD 3.32, compared to NTD 2.93 in the previous quarter and NTD 2.48 a year ago.

Given the remarkable recovery in demand, the company was planning to expand its capacity by 30 percent by the end of last year, and the new capacity is likely to start online next year at the earliest.

Demand in the second quarter is expected to be strong based on new job opportunities in applications related to factory automation and energy conservation.

“However, the implications of component shortages, the closure of Kunshan last month, and logistical restrictions remain, which could affect second-quarter revenue by 8 percent to 10 percent,” said Chen, as shipments will be delayed until later in this year. general.

“Advantech will benefit from our capabilities at Linkou [Taiwan] and Kunshan [China] To minimize overall impacts and maintain operational stability.”

Comments will be moderated. Keep comments related to the article. Notes containing abusive and obscene language, personal attacks of any kind or promotion and user ban will be removed. The final decision will be to the discretion of the Taipei Times.

Leave a Reply

%d bloggers like this: