WPG (TSE:3702) Reports Its Consolidated Sales of Third Quarter 2018 Set Quarterly Record High and Exceed Forecast, YTD Consolidated Sales Reaches NT$413.31 Billion, EPS was NT$3.27
WPG (TSE:3702) Reports Its Consolidated Sales of Third Quarter 2018 Set Quarterly Record High and Exceed Forecast, YTD Consolidated Sales Reaches NT$413.31 Billion, EPS was NT$3.27
2018/11/02
Contributed from steady growth in core products such as 3C and automotives, and benefited from successful deployment in new applications such as Internet of Things(IoT), Artificial Intelligence(AI), cloud storage and high-performance computing, also benefited from double-digit growth in monthly revenue of North America, WPG, the largest distributor of semiconductor components in Asia announces its third quarter consolidated sales of NT$150.36 billion set quarterly record high and exceed forecast. With optimizing product portfolios and efficient expense control, operating expenses to sales ratio was 2.37%, driving operating income of NT$2.926 billion set quarterly record high, net income was NT$1.769 billion with NT$1.02 EPS. YTD consolidated sales and net income both set record high reaches NT$413.307 billion and NT$5.863 billion respectively. YTD EPS was NT$3.27.
Based on the exchange rate assumption of 1 US dollar to 31 NT dollars, management guides the total sales of fourth quarter 2018 will be between NT$132 billion and NT$138 billion, with the gross margin in the range of 4.1%~4.3% and the operating margin between 1.80%~1.95%.
The profit growth has been delivered by continued growing demand of smart phone, computer, wireless broadband, cloud servers, Internet of Things(IoT) and Artificial Intelligence(AI). Non-3C segments’ contribution such as automotives, industrial electronics and power saving remained healthy. With increased profit and improving operating efficiency, key financial indices: Return on Working Capital (ROWC) and ROE was 10.3% and 13.6% respectively.
In the third quarter of 2018, driven by the IoT, 72 application solutions were provided in the fields of Automotive (26), Power (15), Smart City (12), Industrial (11), Security (6), USB (2), focusing on applications of wireless car charger, ADAS, On-Board charger, automotive current detector, matrix LED controller, CHMSL, in-vehicle infotainment system, digital-controlled power, Power over Ethernet, X-Capacitor discharge IC, digital signage with AI face recognition technology, symphonic mbus, high efficiency & low cost electrical driving, brushless DC motor, AI smart camera, USB Type-C delivery.
Table: WPG Holdings Consolidated Management Financials for the year ended September 30, 2018. (In brief)
Units：NT$million
|
Income Statement (nine months ended September 30, 2018) |
|
Balance Sheet (September 30, 2018) |
||
|
Item |
Amount |
|
Item |
Amount |
|
Operating revenues |
413,307 |
|
Current Assets |
196,965 |
|
Cost of Goods Sold |
(395,429) |
|
Accounts receivables |
109,188 |
|
Gross Profit |
17,878 |
|
Inventories |
67,689 |
|
Operating Expenses |
(9,847) |
|
Other assets |
14,683 |
|
Operating income |
8,031 |
|
Total Assets |
211,647 |
|
Non-op Expenses |
(772) |
|
Current Liabilities |
148,862 |
|
Profit Before Tax |
7,259 |
|
Current Borrowing |
73,225 |
|
Tax |
(1,360) |
|
Accounts payables |
63,555 |
|
Minority & Others |
(36) |
|
LT Liabilities |
8,497 |
|
Profit After tax |
5,863 |
|
Total Liabilities |
158,597 |
|
EPS (Note1) |
3.27 |
|
Common Stock |
16,791 |
|
Net book value per share (Note 1) |
30.24 |
|
Total Equity |
53,050 |
Note1：Based on weighted average outstanding shares.
|
Cash flows (nine months ended September 30, 2018) |
|
|
Item |
Amount |
|
Income before Income Tax |
7,259 |
|
Change in NWC |
(10,889) |
|
Operating cash inflow /(outflow) |
(7,336) |
|
Investment cash inflow /(outflow) |
16 |
|
Change in Financial Debt |
11,734 |
|
Cash Dividend |
(4,380) |
|
Financing cash inflow /(outflow) |
7,369 |
|
Cumulative translation adjustments |
1,244 |
|
Net Cash |
1,293 |
|
Beginning cash balance |
7,098 |
|
Ending cash balance |
8,391 |
|
4Q18 Forecast |
|||
|
Item |
Amount |
||
|
Revenue |
132,000 |
~ |
138,000 |
|
Gross Profit |
5,412 |
~ |
5,934 |
|
Gross Margin |
4.10% |
~ |
4.30% |
|
Operating Expenses |
3,036 |
~ |
3,243 |
|
Operating Income |
2,376 |
~ |
2,691 |
|
Operating Margin |
1.80% |
~ |
1.95% |
|
Profit Before Tax |
1,694 |
~ |
1,997 |
|
Profit After Tax |
1, 346 |
~ |
1,589 |
|
EPS (NT$) (Note 1) |
0.80 |
~ |
0.95 |
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