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Record High! WPG (TSE:3702) Reported Its Record High in Consolidated Operating Income, Net Income and Operating Cash inflow of 2017. EPS was NT$4.09

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Record High! WPG (TSE:3702) Reported Its Record High in Consolidated Operating Income, Net Income and Operating Cash inflow of 2017. EPS was NT$4.09

 

2018/02/06

 

Benefited from growing shipments of mobile phone, computer, automotives and cloud product, WPG, the largest distributor of semiconductor components in Asia, announced Its record high in consolidated operating income and net income of 2017. Despite the impact of NT dollar’s recent appreciation, Ytd consolidated sales totaled NT$532.462 billion still set second record high. With optimizing product portfolios and efficient expense control, operating margin grew to 1.87%, hit record high since 2012 and drive operating income, net income and operating cash inflow of 2017 hit record high. Operating income and net income reached NT$9.95 billion and NT$7.299 billion, represented 24.7% and 37.4% double-digit growth year over year respectively, operating cash inflow was NT$8.1 billion. EPS was NT$4.09 per share.

Consolidated sales of fourth quarter was NT$138.413 billion, operating income was NT$2.617 billion, net income was NT$1.636 billion. EPS was NT$0.9 per share.

Based on the exchange rate assumption of 1 US dollar to 29 NT dollars, management guides the total sales of first quarter 2018 will be between NT$108 billion and NT$120 billion, with the gross margin in the range of 4.1%~4.3% and the operating margin between 1.74%~1.85%.

The profit growth has been delivered by continued growing demand of 4G and 3G smart phone, wireless broadband, and cloud servers. Non-3C segments’ contribution such as automotives, industrial electronics and power saving remained healthy. With increased profit and improving operating efficiency, key financial indices: Return on Working Capital (ROWC) and ROE was 10% and 14.4% respectively.

In the fourth quarter of 2017, driven by the IoT, 54 application solutions were provided in the fields of Power (16), Automotive (11), Smart Home (9), Smart City (7), Security (3), USB (3), Industrial (2), Wearable devices (2), LED (1), focusing on applications of digital power, PPS, converter with USB power delivery, series resonant converters with a secondary-side resonant tank, quick charge, 5 port ethernet switch, TPMS sensor, 77GHz millimeter-wave radar, 400W phase shifted full bridge converter, smart door lock, RFID entry access control, Airbox sensor for PM2.5, security surveillance IP camera, USB-C power adapter.

 

 Table: WPG Holdings Consolidated Management Financials for the year ended December 31, 2017. (In brief)

Units:NT$million

Income Statement (2017/1/1~2017/12/31)

 

Balance Sheet (2017/12/31)

Item

Amount

 

Item

Amount

Operating revenues

532,462

 

Current Assets

163,600

Cost of Goods Sold

(510,105)

 

Accounts receivables

91,649

Gross Profit

22,357

 

Inventories

56,625

Operating Expenses

(12,408)

 

Other assets

14,823

Operating income

9,950

 

Total Assets

178,423

Non-op Expenses

(1,037)

 

Current Liabilities

113,260

Profit Before Tax

8,913

 

Current Borrowing

58,049

Tax

(1,555)

 

Accounts payables

48,486

Minority & Others

(58)

 

LT Liabilities

11,938

Profit After tax

7,299

 

Total Liabilities

126,334

EPS (Note1)

4.09

 

Common Stock

18,251

Net book value per share (Note 1)

28.25

 

Total Equity

52,089

Note1:Based on weighted average outstanding shares.

 

Cash flows (2017/1/1~2017/12/31)

Item

Amount

Income before Income Tax

8,913

Change in NWC

(5,342)

Operating cash inflow /(outflow)

8,110

Investment cash inflow /(outflow)

(420)

Change in Financial Debt

337

Cash Dividend

(4,178)

Financing cash inflow /(outflow)

(3,858)

Cumulative translation adjustments

(5,186)

Net Cash

(1,354)

Beginning cash balance

8,457

Ending cash balance

7,103

 

1Q18 Forecast

Item

Amount

Revenue

108,000

~

120,000

Gross Profit

4,428

~

5,160

Gross Margin

4.10%

~

4.30%

Operating Expenses

2,536

~

2,955

Operating Income

1,892

~

2,205

Operating Margin

1.75%

~

1.84%

Profit Before Tax

1,499

~

1,769

Profit After Tax

1,183

~

1,399

EPS (NT$) (Note 1)

0.65

~

0.77

Note1:Based on weighted average outstanding shares.

 

 

 

IR contacts:Cliff Yuan/ Zoe Peng

Tel:886-2-7712-5268 / 886-2-7712-5262

Email address:  ir@WPGholdings.com

Corporate website:  www.WPGholdings.com

 

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