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WPG (TSE:3702) Reports Its Net Income of Second Quarter 2018 Reaches NT$2.204 Billion, Set Quarterly Record High and Exceed Forecast, +23.1% YoY. EPS was NT$1.21

20180807

WPG (TSE:3702) Reports Its Net Income of Second Quarter 2018 Reaches NT$2.204 Billion, Set Quarterly Record High and Exceed Forecast, +23.1% YoY. EPS was NT$1.21.

 

2018/08/07

 

Benefited from growing shipments of 3C, Internet of Things(IoT), automotives, Artificial Intelligence(AI), cloud product and passive components, WPG, the largest distributor of semiconductor components in Asia, announced Its second quarter 2018 consolidated sales of NT$139.533 billion, represented 8.7% increase over previous year. With optimizing product portfolios and efficient expense control, operating expenses to sales ratio was 2.41%, driving operating income of NT$2.695 billion set quarterly second record high, represented 15.1% increase over previous year. Contribution from FX gains and gains on disposal of investments, net income of NT$2.204 billion set quarterly record high and exceed forecast reaches, represented 23.1% increase year over year. EPS was NT$1.21 per share. YTD consolidated sales was NT$262.944 billion, net income reaches NT$4.095 billion, represented 12.6% increase over previous year. YTD EPS was NT$2.24.

Based on the exchange rate assumption of 1 US dollar to 30.5 NT dollars, management guides the total sales of third quarter 2018 will be between NT$142 billion and NT$150 billion, with the gross margin in the range of 4.1%~4.3% and the operating margin between 1.85%~1.98%. Forecast of FX gains and investment income were based on conservatism principle.

The profit growth has been delivered by continued growing demand of smart phone, computer, wireless broadband, cloud servers, Internet of Things(IoT) and Artificial Intelligence(AI). 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 9.9% and 17% respectively.

In the second quarter of 2018, driven by the IoT, 53 application solutions were provided in the fields of Smart Home (17), Automotive (14), Smart phone (6), Power (6), Wearable devices (3), Industrial (2), Smart City (2), Security (1), LED (1), USB (1), focusing on applications of door locks PCBA, BLE smart lock, access control system, environment monitoring gateways, automotive Ethernet, adaptive front-lighting, battery management system (BMS), ADAS, secondary side synchronous rectifier controller, boost converter, iris recognition, NFC payment, smart watch, wireless remote monitor, mobile modem, ZigBee audible and visual alarms.

 

 

 Table: WPG Holdings Consolidated Management Financials for the year ended June 30, 2018. (In brief)

Units:NT$million

Income Statement

(six months ended June 30, 2018)

 

Balance Sheet

(June 30, 2018)

Item

Amount

 

Item

Amount

Operating revenues

262,944

 

Current Assets

181,755

Cost of Goods Sold

(251,558)

 

Accounts receivables

98,481

Gross Profit

11,386

 

Inventories

64,720

Operating Expenses

(6,283)

 

Other assets

15,259

Operating income

5,104

 

Total Assets

197,015

Non-op Expenses

(102)

 

Current Liabilities

135,941

Profit Before Tax

5,002

 

Current Borrowing

67,270

Tax

(885)

 

Accounts payables

54,590

Minority & Others

(23)

 

LT Liabilities

6,963

Profit After tax

4,095

 

Total Liabilities

144,171

EPS (Note1)

2.24

 

Common Stock

18,251

Net book value per share (Note 1)

28.65

 

Total Equity

52,844

Note1:Based on weighted average outstanding shares.

 

Cash flows

(six months ended June 30, 2018)

Item

Amount

Income before Income Tax

5,002

Change in NWC

(6,177)

Operating cash inflow /(outflow)

(4,988)

Investment cash inflow /(outflow)

(272)

Change in Financial Debt

4,246

Financing cash inflow /(outflow)

4,277

Cumulative translation adjustments

1,232

Net Cash

250

Beginning cash balance

7,098

Ending cash balance

7,347

 

3Q18 Forecast

Item

Amount

Revenue

142,000

~

150,000

Gross Profit

5,822

~

6,450

Gross Margin

4.10%

~

4.30%

Operating Expenses

3,195

~

3,480

Operating Income

2,627

~

2,970

Operating Margin

1.85%

~

1.98%

Profit Before Tax

2,035

~

2,343

Profit After Tax

1,603

~

1,850

EPS (NT$) (Note 1)

0.92

~

1.07

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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