WPG (TSE:3702) Reports Its Net Income Reached High Side of Forecast. EPS was NT$0.78
WPG (TSE:3702) Reports Its Net Income Reached High Side of Forecast. EPS was NT$0.78
2019/5/3
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, WPG, the largest distributor of semiconductor components in Asia announces its first quarter consolidated sales of NT$111.832 billion affected by low season and supply chain inventory adjustments. With optimizing product portfolios and efficient expense control, operating income was NT$2.028 billion, net income of NT$1.304 billion reached high side of forecast. EPS was NT$0.78 per share.
2019 key financial indices: Return on Working Capital (ROWC) and ROE was 8.2% and 9.5% respectively.
Based on the exchange rate assumption of 1 US dollar to 30.8 NT dollars, management guides the total sales of second quarter 2019 will be between NT$125 billion and NT$133 billion, with the gross margin in the range of 4.2%~4.4% and the operating margin between 1.75%~1.95%.
Driven by 5G start becoming operational and IoE, smart city, smart home and IoT related application solutions were provided in the fields of Power (22), Smart City (13), Automotive (8), Smart Home (6), Medical (3), Wearable Devices (3), MID (1) focusing on applications of 18W type-C PD3.0 charger, full-bridge AC-DC, flyback 50W LED power, high PF isolated constant-current LED power driver, MR-16 LED lighting power, 24W PSR power adapter, electric car positioning equipment, 38*38mm face recognition camera, electronic shelf label, smart street lamp with LoRa, SPS moisture sensor, water pump, AVB bridge automotive ethernet bridge, Android Auto vehicle system, matrix headlights, AWS IoT development kit, NB-IoT development kit, bluetooth e-cigarettes, blood pressure monitor.
Table: WPG Holdings Consolidated Management Financials for three months ended March 31, 2019 and 2Q19 Forecast. (In brief)
Units：NT$million
|
Income Statement (three months ended March 31, 2019) |
|
Balance Sheet (March 31, 2019) |
||
|
Item |
Amount |
|
Item |
Amount |
|
Operating revenues |
111,832 |
|
Current Assets |
171,226 |
|
Cost of Goods Sold |
(106,858) |
|
Accounts receivables |
83,484 |
|
Gross Profit |
4,974 |
|
Inventories |
69,104 |
|
Operating Expenses |
(2,945) |
|
Other assets |
16,599 |
|
Operating income |
2,028 |
|
Total Assets |
187,825 |
|
Non-op Expenses |
(374) |
|
Current Liabilities |
115,514 |
|
Profit Before Tax |
1,655 |
|
Current Borrowing |
51,496 |
|
Tax |
(342) |
|
Accounts payables |
53,660 |
|
Minority & Others |
(8) |
|
LT Liabilities |
13,338 |
|
Profit After tax |
1,304 |
|
Total Liabilities |
131,349 |
|
EPS (Note1) |
0.78 |
|
Common Stock |
16,791 |
|
Net book value per share (Note 1) |
33.34 |
|
Total Equity |
56,475 |
Note1：Based on weighted average outstanding shares.
|
Cash flows (three months ended March 31, 2019) |
|
|
Item |
Amount |
|
Income before Income Tax |
1,655 |
|
Change in NWC |
10,873 |
|
Operating cash inflow /(outflow) |
9,137 |
|
Investment cash inflow /(outflow) |
211 |
|
Change in Financial Debt |
(11,201) |
|
Financing cash inflow /(outflow) |
(11,205) |
|
Cumulative translation adjustments |
314 |
|
Net Cash |
(1,544) |
|
Beginning cash balance |
7,117 |
|
Ending cash balance |
5,573 |
|
2Q19 Forecast |
|||
|
Item |
Amount |
||
|
Revenue |
125,000 |
~ |
133,000 |
|
Gross Profit |
5,250 |
~ |
5,852 |
|
Gross Margin |
4.20% |
~ |
4.40% |
|
Operating Expenses |
3,063 |
~ |
3,259 |
|
Operating Income |
2,187 |
~ |
2,593 |
|
Operating Margin |
1.75% |
~ |
1.95% |
|
Profit Before Tax |
1,636 |
~ |
2,032 |
|
Profit After Tax |
1, 104 |
~ |
1,421 |
|
EPS (NT$) (Note 1) |
0.66 |
~ |
0.85 |
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