20230308
WPG (TWSE:3702) Attend Investor Conference Held by KGI SECURITIES on March 8th, 2023
2023/03/08
WPG, the distributor of semiconductor components, announces 2022 consolidated sales of NT$775.232 billion hitting second record high for the year, under the effective control of expenses, operating income hitting record high, achieved NT$14.7 billion. Contributing from investment income and foreign exchange income, net income of NT$10.512 billion with EPS NT$6.02 hitting second record high for the year.
Due to sustained profitability and effective working capital management, the fourth quarter operating cash inflow of NT$26.9 billion hit record high, leading to significant improvement in the company’s financial structure and cash position. 2022 key financial indicators Return on Equity (ROE) was 13.9%, Return on Working Capital (ROWC) was 9.7%.
The revenue contribution from non-3C applications in the fourth quarter exceeded 25% of the total revenue for the first time, mainly from the downstream customers continuously invest in networking and peripheral equipment and server, growing demand for automation drives industrial electronics, and automotive electronics related non-3C applications remains strong. In addition, driven by North America and Southeast Asia customers have put into production, which has led to double-digit revenue growth in the regions, also drive the demand for semiconductor and related electronic components.
For 2023 first quarter, based on an exchange rate assumption of NT$30.7 to the U.S. dollar, WPG forecasts consolidated revenue of NT$145 billion to NT$155 billion, gross margin of 3.7% to 3.9%, operating margin of 1.45% to 1.59%, net income of NT$0.731 billion to NT$0.802 billion, EPS of NT$0.44 to NT$0.48.
While continuing to focus on improving profitability and market share, WPG also actively adopts ESG practices for sustainable development, leading the distributor of semiconductor components globally. Recently, MSCI has upgraded WPG’s ESG Rating from “BBB” to “A” due to our ongoing efforts in corporate governance(G), increase clean technology-related solutions(E), and social engagement(S)…etc. NThis upgrade demonstrates the high recognition of the rating agency for WPG' commitment to ESG sustainable management.
Driven by 5G commercialization and IoT trends, application solutions in power, Automotive and IoT related field continue to increase, laying solid foundation for future growth in sales. To provide better value-added service and increase market share, 50 application solutions were provided to our customers, including fields in Automotive (12), Power (10), Smart City (9), Smart Home (5), Industrial (5), Wearable Devices (4), AIoT (2), Medical(1), Consumer (1), Networking(1), focusing on Car grille lamp, car touch reading lamp, car steering wheel HOD, inertial navigation, electric motorcycle VCU, micro-inverter power supply, buffer rectifier bridge for thermistor, SoC high-integration wireless charging transmitter IC, AI intelligent monitoring video DVR, CMOS Image Sensor, Bluetooth music lamp control transmitter, industrial barcode printer with motor drive, Bluetooth mask, real-time image object recognition.…etc.
Table: WPG Holdings Ltd. Consolidated Financial Statements for the year ended December 31, 2022 (In brief)
Units：NT$million
|
Income Statement (year ended December 31, 2022) |
|
Balance Sheet (December 31, 2022) |
||
|
Item |
Amount |
|
Item |
Amount |
|
Operating revenues |
775,232 |
|
Current Assets |
274,413 |
|
Cost of Goods Sold |
(745,644) |
|
Accounts receivables |
120,667 |
|
Gross Profit |
29,588 |
|
Inventories |
111,737 |
|
Operating Expenses |
(14,888) |
|
Other assets |
41,807 |
|
Operating income |
14,700 |
|
Total Assets |
316,220 |
|
Non-op Expenses |
(1,990) |
|
Current Liabilities |
197,056 |
|
Profit Before Tax |
12,710 |
|
Current Borrowing |
96,795 |
|
Tax |
(2,133) |
|
Accounts payables |
81,353 |
|
Minority & Others |
(65) |
|
LT Liabilities |
33,532 |
|
Profit After tax |
10,512 |
|
Total Liabilities |
234,306 |
|
EPS - Common Stock (Note1) |
6.02 |
|
Common Stock |
16,791 |
|
Note1：Based on weighted average outstanding shares. |
|
Total Equity |
81,913 |
|
|
Cash Flow Statement (year ended December 31, 2022) |
|
|
Item |
Amount |
|
Income before Income Tax |
12,710 |
|
Change in NWC |
(6,567) |
|
Operating cash inflow /(outflow) |
(6,088) |
|
Investment cash inflow /(outflow) |
(2,630) |
|
Change in Financial Debt |
8,951 |
|
Cash Dividends |
(6,277) |
|
Financing cash inflow /(outflow) |
2,051 |
|
Cumulative translation adjustments |
8,856 |
|
Net Cash |
2,189 |
|
Beginning cash balance |
14,408 |
|
Ending cash balance |
16,597 |
IR contacts：Cliff Yuan/ Zoe Peng
Tel：886-2-2191-0068 ext.85268/ext.85262
Email address: ir@WPGholdings.com
Corporate website: www.WPGholdings.com
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