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Advantech Reports 2Q23 EPS of NT$3.51


Advantech (TWSE: 2395) today announced the following consolidated financial results for the second quarter of 2023 ending June 30: 

  • Revenue NT$17.028 billion, decline 2% QoQ and up 1% YoY
  • Gross profit  NT$7.014 billion, up 1% QoQ and up 8% YoY
  • Operating profit NT$3.430 billion, decline 2% QoQ and up 10% YoY 
  • Net income NT$3.004 billion, up 2% QoQ and up 22% YoY
  • Earnings per share     NT$3.51

Regarding the accumulated operating results of 1H23 in US dollars, Advantech achieved an overall revenue of US$1,126 million, decreased 2% YoY. In terms of a geographic overview, Europe and North Asia markets were the best performers with a YoY growth both at 13%, respectively, while North America maintained a single-digit growth in YoY. On the contrary, China, Taiwan, and Emerging markets were impacted by the economic slowdown of China after the dismantling of COVID lockdowns and the off-season for project shipments, which have resulted in a relatively weaker performance with double-digit decline in YoY. By business units, Embedded-IoT Group (EIoT) outperformed with 13% growth in YoY, while Applied Computing Group (ACG) and Industrial Cloud &Video Group (ICVG) enjoyed a single-digit increase in YoY. Though, the revenue of Industrial-IoT Group (IIoT) and Service-IoT Group (SIoT) declined in YoY were mainly due to customers’ inventory adjustment and order deferrals in major medical projects.

Mr. Eric Chen, CFO and President of General Management at Advantech stated, “Advantech’s revenue performance in 1H23 met its expectations while profitability slightly outperformed contributed by normalizing on raw material prices, leading to a significant improvement in gross margin, operating margin, and net profit. Though, facing the dual challenges of global inflation and uncertain recovery in China marker, the overall order demand has notably slowdown. In terms of the Orders-to-Shipments ratio (BB ratio) of 2Q23, the company overall reached 0.79. For regional breakdown, 2Q23 BB ratio of North America remain stabled; however, Europe and China markets were below average with BB ratio of 0.68 and 0.78, respectively. The expected 3Q23 revenue momentum will be facing year on year decline due to the weak order demand since the beginning of this year. However, the company aims to regain with its fundamental core competitiveness in the mid-to-long term. Advantech will proactively devote itself to various high-growth sectors, such as industrial automation, EV charging equipment, and renewable energy infrastructure. Throughout the Sector Driven strategy, we are aligning and nurturing talents in targeted industrial domains to gain a competitive advantage in the AIoT industry.”