Advantech Reports 1Q23 EPS of NT$3.80
Advantech (TWSE: 2395) today announced the following consolidated financial results for the first quarter of 2023 ending March 31:
- Revenue NT$17.396 billion, up 1% QoQ and up 8% YoY
- Gross profit NT$6.911 billion, up 4% QoQ and up 12% YoY
- Operating profit NT$3.502 billion, up 16% QoQ and up 16% YoY
- Net incom NT$2.959 billion, up 16% QoQ and up 15% YoY
- Earnings per share NT$3.80
Regarding the accumulated operating results of 1Q23 in US dollars, Advantech achieved an overall revenue of US$571 million, decreased 1% YoY, slightly beat company guidance. In terms of a geographic overview, North Asia and Europe markets were the best performers with a YoY growth at 18% and 13%, respectively, while Japanese market was the strongest among North Asia, with a YoY growth at nearly 40%. However, China market was still relatively weak in the first quarter due to the dismantling of COVID lockdowns and on-going inventory adjustment; Taiwan and Emerging markets were double-digit decrease in YoY due to high base period last year. By business unit, Industrial Cloud & Video Group (ICVG) and Embedded-IoT (EIoT) reached double-digit increase in YoY at 26% and 18%, respectively, though rest of the business units showed decline in YoY.
Mr. Eric Chen, CFO and President of General Management at Advantech stated, “Despite global high inflation and uncertainty factors in China continue to pose challenges in 2023, Advantech maintained healthy momentum benefiting from large project shipments in the Europe and North America markets. Advantech achieved second-highest record in both revenue and profit for the first quarter. In terms of the Orders-to-Shipments ratio (BB ratio), 1Q23 Company overall reached 0.82. For regional breakdown, 1Q23 BB ratio of North America and Europe markets were relatively weak, while the BB ration in China was trending near 1x. It seems China has shown a sign of recovery since the reopening but still needs further observation.
Looking towards 2Q23, Advantech has already initiated the next era of its globalization transformation. With the first wave of devoting investments and co-creation in major markets including North America, Japan and ASEAN, the construction of the new U.S. headquarters has activated the groundbreaking this month. At the same time, Advantech has targeted new energy opportunities through its Sector Driven strategy, seizing opportunities in areas such as renewable energy infrastructure, EV batteries/charging equipment, and iEMS (intelligent energy management solution). Overall, the company expects to maintain positive momentum and achieve quarterly growth in the future."