WPG (TSE:3702) Reported Its First Quarter 2018 Consolidated Sales, Operating Income and Net Income Exceed Forecast. Net Income Set Quarterly Second Record High. EPS was NT$1.04.
WPG (TSE:3702) Reported Its First Quarter 2018 Consolidated Sales, Operating Income and Net Income Exceed Forecast. Net Income Set Quarterly Second Record High. EPS was NT$1.04.
2018/05/02
Benefited from growing shipments of 3C, Internet of Things(IoT), automotives and cloud product, WPG, the largest distributor of semiconductor components in Asia, announced Its first quarter 2018 consolidated sales, operating income and net income exceed forecast. Consolidated sales reached NT$123.412 billion, represented 3.7% increase over previous year. With optimizing product portfolios and efficient expense control, operating expenses to sales ratio was 2.37%, driving operating income reached NT$2.44 billion, represented 6.3% increase over previous year, operating margin was 1.95%, reached a six-year high this quarter. Contribution from FX gains about NT$0.21 billion, net income grew 2.4% to NT$1.891 billion, set quarterly second record high. EPS was NT$1.04 per share.
Based on the exchange rate assumption of 1 US dollar to 29.2 NT dollars, management guides the total sales of second quarter 2018 will be between NT$127 billion and NT$140 billion, with the gross margin in the range of 4.1%~4.3% and the operating margin between 1.85%~1.98%.
The profit growth has been delivered by continued growing demand of 4G and 3G smart phone, computer, wireless broadband, and cloud servers. Non-3C segments’ contribution such as automotives, industrial electronics and power saving remained healthy. With increased profit and improving operating efficiency, key financial indices: Return on Working Capital (ROWC) and ROE was 10.1% and 14.6% respectively.
Board of Directors also resolved distribution of NT$2.4 cash dividend per share and NT$0.8 per share for capital reduction. If the annual general meeting approved both resolutions, shareholders will receive NT$3.2 per share this year.
In the first quarter of 2018, driven by the IoT, 55 application solutions were provided in the fields of Power (24), Industrial (10), Smart Home (9), Smart City (9), Automotive (2), Security (1), focusing on applications of single-switch power factor converter, 300W two-way charging, LLC synchronous rectification, 15W single-coil wireless charging, quick charge3.0, brushless DC motor, photovoltaic plant monitoring system, 1200V SiC-MOSFET, 3D printer with stepping motor, gas sensor, DALI 2.0 Lighting, smart garden, charging pile, digital dashboard.
Table: WPG Holdings Consolidated Management Financials for the year ended March 31, 2018. (In brief)
Units：NT$million
|
Income Statement (2018/1/1~2018/3/31) |
|
Balance Sheet (2018/3/31) |
||
|
Item |
Amount |
|
Item |
Amount |
|
Operating revenues |
123,412 |
|
Current Assets |
165,623 |
|
Cost of Goods Sold |
(118,086) |
|
Accounts receivables |
85,849 |
|
Gross Profit |
5,326 |
|
Inventories |
62,263 |
|
Operating Expenses |
(2,922) |
|
Other assets |
15,365 |
|
Operating income |
2,404 |
|
Total Assets |
180,988 |
|
Non-op Expenses |
(56) |
|
Current Liabilities |
120,497 |
|
Profit Before Tax |
2,348 |
|
Current Borrowing |
58,727 |
|
Tax |
(443) |
|
Accounts payables |
52,817 |
|
Minority & Others |
(14) |
|
LT Liabilities |
6,862 |
|
Profit After tax |
1,891 |
|
Total Liabilities |
128,587 |
|
EPS (Note1) |
1.04 |
|
Common Stock |
18,251 |
|
Net book value per share (Note 1) |
28.41 |
|
Total Equity |
52,401 |
Note1：Based on weighted average outstanding shares.
|
Cash flows (2018/1/1~2018/3/31) |
|
|
Item |
Amount |
|
Income before Income Tax |
2,348 |
|
Change in NWC |
7,138 |
|
Operating cash inflow /(outflow) |
5,527 |
|
Investment cash inflow /(outflow) |
(152) |
|
Change in Financial Debt |
(4,398) |
|
Financing cash inflow /(outflow) |
(4,379) |
|
Cumulative translation adjustments |
(1,450) |
|
Net Cash |
(453) |
|
Beginning cash balance |
7,098 |
|
Ending cash balance |
6,645 |
|
2Q18 Forecast |
|||
|
Item |
Amount |
||
|
Revenue |
127,000 |
~ |
140,000 |
|
Gross Profit |
5,207 |
~ |
6,020 |
|
Gross Margin |
4.10% |
~ |
4.30% |
|
Operating Expenses |
2,858 |
~ |
3,248 |
|
Operating Income |
2,349 |
~ |
2,772 |
|
Operating Margin |
1.85% |
~ |
1.98% |
|
Profit Before Tax |
2,023 |
~ |
2,434 |
|
Profit After Tax |
1,599 |
~ |
1,928 |
|
EPS (NT$) (Note 1) |
0.88 |
~ |
1.06 |
Note1：Based on weighted average outstanding shares.
IR contacts：Cliff Yuan/ Zoe Peng
Tel：886-2-7712-5268 / 886-2-7712-5262
Email address: ir@WPGholdings.com
Corporate website: www.WPGholdings.com