Advantech Reports 3Q21 EPS of NT$2.95
Advantech (TWSE: 2395) today announced the following consolidated financial results for the third quarter of 2021 ending September 30:
||NT$15.507 billion, up 9% QoQ and up 19% YoY|
||NT$5.706 billion, up 9% QoQ and up 10% YoY|
|NT$2.608 billion, up 19% QoQ and up 15% YoY|
|NT$2.274 billion, up 27% QoQ and up 17% YoY|
Regarding the accumulated to 3Q21 operating results in US dollar, Advantech achieved an overall revenue of US$1,525 million, up 19% YoY, also beat company guidance. By business unit, Industrial-IoT Group (IIoT), Service-IoT Group (SIoT) and Advantech Service Plus (AS+) had the strongest growth momentum in YT3Q21, with YoY growth at 35%, 27% and 28%, respectively. However, Applied Computing Group (ACG) performed relatively weak with 7% YoY decline due to major projects ended and ATJ (Advantech Technologies Japan) underperformed.
In terms of a geographic overview, most markets have reported YoY revenue growth in YT3Q21. The best performing market in YT3Q21 was China and Emerging market with YoY growth at 37% and 51%, respectively. Europe, Taiwan and South Korea markets were also reported double-digit YoY growth. Meanwhile, Japan market returns to growth with 1.2% YoY increase.
Mr. Eric Chen, CFO and President of General Management at Advantech, stated that, “Benefit from the strong demand for new energy and new-infra upgrade in major markets, Advantech delivered outstanding financial results in 3Q21. The Orders to Shipments ratio (BB ratio) reached 1.45 in 3Q21, while BB ratio for YT3Q21 was 1.55. Though the impact of material shortages still exists, with procurement optimization and contribution of pricing adjustment, 3Q21 Gross Profit rate gradually recovered. Furthermore, if the price of raw materials continues to rise in the next six months, Advantech will consider to initiate second ASP hike to reflect cost if necessary. We keep a positive view toward 4Q21. Advantech's capacity expansion plan has been launched as scheduled. It is expected the overall production will increase 30% by this year, preparing for the order shipments in the following quarters.”.