AI assistant
Advantech — Interim / Quarterly Report 2023
Nov 8, 2023
52053_rns_2023-11-08_ca73c8b6-474e-4e85-9cec-5a48afdc798b.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
Advantech Investor Conference 研華科技法人說明會
1[st] November, 2023
==> picture [126 x 25] intentionally omitted <==
Safe Harbor Notice
◼ Advantech’s statement of its current expectations are forward-looking statements which are subject to significant risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements.
◼ The projections should not be interpreted as legally binding commitments, but rather as flexible information subject to change occasionally.
3Q23 Financial Results
| NT$ mn | 3Q23 | % | 2Q23 | % | QoQ | 3Q22 | % | YoY | YT 3Q23 | **% ** | YT 3Q22 | % | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 15,006 | 100.0% | 17,028 | 100.0% | -12% | 18,614 | 100.0% | -19% | 49,430 | 100.0% | 51,558 | 100.0% | -4% |
| Gross Profit | 6,017 | 40.1% | 7,014 | 41.2% |
-14% | 6,780 | 36.4% | -11% | 19,942 | 40.3% | 19,436 | 37.7% | 3% |
| Operating Expense | 3,511 | 23.4% | 3,585 | 21.1% |
3,401 | 18.3% | 10,505 | 21.3% | 9,936 | 19.3% | |||
| Operating Profit | 2,506 | 16.7% | 3,429 | 20.1% | -27% | 3,379 | 18.2% | -26% | 9,437 | 19.1% | 9,501 | 18.4% | -1% |
| Non-operating Items | 582 | 3.9% | 339 | 2.0% |
588 | 3.2% | 1,100 | 2.2% | 773 | 1.5% | |||
| Pretax Profit | 3,088 | 20.6% | 3,768 | 22.1% |
-18% | 3,967 | 21.3% | -22% | 10,537 | 21.3% | 10,274 | 19.9% | 3% |
| Tax Expenses | 531 | 3.5% | 763 | 4.5% |
791 | 4.2% | 2,019 | 4.1% | 2,066 | 4.0% | |||
| Net Income to Parent | 2,583 | 17.2% | 3,004 | 17.6% |
-14% | 3,184 | 17.1% | -19% | 8,547 | 17.3% | 8,214 | 15.9% | 4% |
| EPS (NT$)* | 3.01 | 3.51 | 3.72 | 9.98 | 9.62 |
*Adjusted EPS after stock dividends of 2022
3Q23
-
Both top-line/ bottom-line underperformed with double-digit declined YoY & QoQ.
-
The OP% was affected by the reduced base of sales revenue.
-
Effective Tax rate was 17.2% in 3Q23.
YT 3Q23
-
Revenue declined 4% YoY , but NI increased 4% in YoY which sets company’s new record high.
-
GP%, OP%, NI% increased significantly.
-
For non-operating items, Advantech booked NT$ 178mn FX gain.
YT3Q23 Sales B Re ion y g
| US$mn | YT 3Q23 | YT 3Q22 | YoY | Rev % |
|---|---|---|---|---|
| North America | 510 | 529 | -4% | 32% |
| Europe | 308 | 305 | +1% | 19% |
| China | 324 | 406 | -20% | 20% |
| North Asia | 167 | 159 | +5% | 10% |
| Taiwan | 76 | 105 | -27% | 5% |
| Asia & InterCon | 138 | 181 | -24% | 9% |
| Others | 77 | 84 | -8% | 5% |
| Total | 1,600 | 1,769 | -10% | 100% |
| 30% 32% 17% 19% 23% 20% 9% 10% 6% 5% 10% 9% 5% 5% YT3Q22 Others AInterCon Taiwan North Asia China Europe North America YT3Q23 |
Asia & InterCon US$mn YT3Q23 YoY AAU/NZ 12 +5% ASEAN 34 -22% India 18 +12% Russia & CIS 4 -21% LATAM 16 +12% ME&A 54 -41% North Asia US$mn YT3Q23 YoY AJP 106 +22% AKR 61 -16% |
YT3Q23 Performance B SBG y
| US$ mn | US$ mn | Revenue | Rev. % | YoY | Gross Margin |
Operating Profit |
OP Margin |
|---|---|---|---|---|---|---|---|
| Industrial-IoT | (IIoT) | 417 | 26% | -15% | 50%~55% | 136 | 33% |
| Embedded-IoT | (EIoT) | 439 | 27% | +4% | 35%~40% | 106 | 24% |
| Applied Computing | (ACG) | 237 | 15% | -3% | 30%~35% | 58 | 25% |
| Industrial Cloud & Video | (ICVG) | 184 | 12% | -13% | 35%~40% | 32 | 17% |
| Service-IoT | (SIoT) | 149 | 9% | -16% | 40%~45% | 21 | 14% |
| Advantech Service + /Others |
(AS+) | 174 | 11% | -21% | 25%~30% | 11 | 6% |
| Total | 1,600 | 100% | -10% | 40.3% | 305* | 19.1% |
- unallocated expenses OP -$59M
◼ IIoT YoY -15%： Affected by weak China market and the slowdown in Taiwan Semiconductor equipment market.
◼ EIoT YoY +4%： Driven by strong demand in Gaming and rebound from China iFactory sector.
◼ ACG YoY -3%： Medical projects declined, while Japan DMS project & Media streaming equipment remained strong.
◼ ICVG YoY -13%： Declined due to the high base period in Cloud Infrastructure and Media Streaming.
◼ SIoT YoY -16% ：Medical and Retails projects slowdown, but positive growth in Fleet Management project.
Balance Sheet & Key Indices
3Q23 |
4Q22 | 3Q22 | ||||
|---|---|---|---|---|---|---|
| NT$mn | Amount | % | Amount | % | Amount | % |
| Cash & Cash Equivalents | 18,292 | 27% | 15,359 | 23% | 9,948 | 16% |
| Account receivable | 11,239 | 17% | 11,109 | 17% | 12,713 | 20% |
| Inventory | 10,850 | 16% | 14,008 | 21% | 14,938 | 24% |
| Total Assets | 66,955 | 100% | 66,385 | 100% | 62,716 | 100% |
| Accountpayable | 6,429 | 10% | 7,126 | 11% | 7,322 | 12% |
| ST debt | 540 | 1% | 699 | 1% | 803 | 1% |
| LT debt | 1,609 | 2% | 298 | 0% | 251 | 0% |
| Total Liabilities | 20,460 | 31% | 22,101 | 33% | 21,081 | 34% |
| Total Equity | 46,495 | 69% | 44,284 | 67% | 41,634 | 66% |
| Key Indices | ||||||
| Inventoryturnover days | 116 | 114 | 117 | |||
| AR turnover days | 58 | 55 | 61 | |||
| AP turnover days | 63 | 63 | 63 | |||
| CCC (cash conversion cycle) |
106 | 106 | 118 |
◼ Inventory amount has been controlled and the proportion of Inventory to Assets has decreased to 16%.
◼ However, DOI slightly increased due to the reduced of sales revenue.
4Q23 Guidance
Based on the exchange rate assumption of US$1 to NT$32 , managements expect the 4Q23 guidance as below:
Items 4Q23 Estimation Consolidated Revenue US$ 465M ~ 485M Gross Margin 38.5% ~ 40.5% Operating Margin 16.0% ~ 18.0%