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Advantech Investor Presentation 2021

Mar 15, 2021

52053_rns_2021-03-15_7855d265-e113-4f2b-86ce-2106d61f7c63.pdf

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研華公司 2021 上半年法人說明會

Mar, 2021

Safe Harbor Notice

==> picture [720 x 9] intentionally omitted <==

 This presentation contains forward-looking statements and is subject to 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.

2

4Q20 & FY2020 Result Summary

NT$ mn 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
FY2020
YoY
Net Sales
QoQ%
YoY%
12,301
-1%
8%
13,976
14%
11%
14,382
3%
16%
13,486
-6%
9%
11,272
-16%
-8%
14,018
13,050
24%
-7%
0%
-9%
12,779
51,119
-2%
-5%
-6%
Gross Profit
Gross Margins%
4,724
38.4%
5,410
38.7%
5,697
39.6%
5,268
39.1%
4,395
39.0%
5,766
5,192
41.1%
39.8%
5,043
20,397
39.5%
39.9%
-3%
OperatingExpense 2,872 3,079 3,070 2,845 2,742 2,925
2,928
2,765
11,359
-4%
Operating Profit
Operating Margin%
1,852
2,331
2,627
2,423
15.1%
16.7%
18.3%
17.9%
1,654
2,841
2,264
14.7%
20.3%
17.4%
2,278
9,037
17.8%
17.7%
-2%
No-operatingIncome 196
89
86
-297
-33
118
202
-195
92
24%
Pretax Profit 2,048
2,420
2,713
2,126
1,621
2,959
2,466
2,083
9,129
-2%
Tax Expenses 432
513
561
409
340
621
511
353
1,825
-5%
Effective Tax Rate 21.1%
21.2%
20.7%
19.4%
21.0%
21.0%
20.7%
16.9%
20.0%
Net Income 1,613
1,892
2,136
1,700
1,295
2,308
1,941
1,704
7,248
-1%
YoY% 18%
19%
25%
4%
-20%
22%
-9%
0%
EPS(NT$) 2.10
2.46
2.78
2.21
1.68
2.99
2.52
2.21
9.40
-2%
  • Advantech booked NT$246mn impairment loss in 4Q20.

  • Effective tax was 20.0% in 2020.

FY2020 Performance by Region

Local Sales: US 1,730.0M, -1%

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----- Start of picture text -----

US$M Y2019 Y2020 GR% Rev. Portion
North America 507.4 497.9 -2% 29%
Europe 300.8 279.3 -7% 16%
China 409.4 422.5 +3% 24%
North Asia 189.3 175.6 -7% 10%
Taiwan 100.5 104.5 +4% 6%
Asia & InterCon 141.9 146.9 +4% 8%
Others 106.7 103.3 -3% 6%
Total 1,756.0 1,730.0 -1% 100%
Others North Asia Asia & InterCon
Asia
6%
& Intercon AJP: 104.8M GR%: -16%
AAU/NZ: 15.8M GR%: +17%
8% North
Taiwan AKR : 70.8M GR%: +9%
America ASEAN: 38.3M GR%: +6%
6%
29% India 12.0M GR%: -17%
North Asia Russia 14.8M GR%: -2%
10%
LATAM 16.2M GR%: +5%
ME&A 48.4M GR%: +7%
Europe ROW 1.5M GR%: -17%
China
16%
24%
----- End of picture text -----

FY2020 Performance By SBG

Y20
US$ mn
Y20
US$ mn
Revenues
YoY
Rev. % Gross Margin
Range
Operating
Profit
OP
Margin
工控物聯網事業群 578
4%
33% 45~50% 169
29.2%
嵌入式運算物聯網事業群 412
-7%
24% 35~40% 78
19.0%
設計製造
服務事業群
應用電腦事業群 224
0%
13% 30~35% 32
14.3%
網路暨通訊事業群 171
-15%
10% 35~40% 37
21.8%
服務物聯網事業群 146
-1%
8% 40~45% 15
10.1%
全球服務事業群 198
0%
11% 30~35% 26
13.2%
其他未分配費用 -48
合計 1,730
-1%
100% 309
17.9%

5

Y2020 Working Capital and Balance Sheet

NT$ mn NT$ mn 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
Cash Cycle

Inventory
8,179 8,446 8,089 7,783 9,093 9,695 8,523 7,814
Account receivable 8,683 9,209 9,526 8,832 8,012 9,617 8,734 8,781
Account payable 5,756 6,519 4,981 4,799 5,291 5,455 3,737 4,326
INturnover 93 87 86 87 110 102 104 95
ARturnover 62 58 59 61 67 57 63 62
APturnover 69 64 60 54 66 59 53 47
CCC 87 80 85 95 112 100 115 110
BS
Cash& Cash Equivalents 9,304 11,446 7,103 10,061 11,013 12,161 9,792 13,132
Cash 7,076 6,641 5,559 6,004 4,966 6,064 6,380 7,497
Marketable Sec. & S/T
Investment
2,229 4,805 1,544 4,057 6,047 6,096 3,412 5,635
Totalasset 46,864 49,654 45,391 47,216 49,007 52,444 47,775 50,199
STdebt 633 524 502 458 493 484 514 405
LTdebt 439 387 334 278 290 198 143 88
Total equity 31,642 28,994 30,971 32,731 28,640 30,904 33,036 35,046
Capex (189) (214) (229) (329) (213) (346) (231) 170
D&A 275 255 289 167 265 219 254 231
Total Investment CF (814) (176) (342) (475) (730) 250 (885) 556

 The DoH was 8 days higher while AR turnover rate was flat compared with Y2019

FY2020 Dividend Per Share – NT$ 7.1 Cash

Cash Dividend Payout Ratio: ~75% of EPS

  • When the firm achieves double digit top-line and bottom-line growth in the year, the board would propose to pay additional stock dividend.
2015 2016 2017 2018 2019 2020
Cash Payout Ratio 74.3% 81.5% 74.7% 75.3% 74.2%
Dividend (NT$/share) 6.0 7.3 6.6 6.8 8.8
Cash per Share 6.0 6.3 6.6 6.8 7.8
Stock per Share 0.0 1.0 0.0 0.0 1.0
EPS (NT$) 6.68 7.41 8.04 8.19 9.55

7

1Q21 營運展望

基於當前營運狀況與平均匯率 28.3 的假設, 研華公司預期第1季的營運展 望如下:

項目 1Q 預估數 合併營收 US$ 430 - 450 M 毛利率 38.0% - 40.0% 營業利潤率 16.0% - 18.0%

8

Co-Creating the Future of the IoT World