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WPG (TSE:3702) Reports Its Consolidated Sales of 2nd Quarter, Set Single Quarter Record High. And a Better Than Expectation Gross Profit Margin; EPS was NT$0.83, +32.4% QoQ.

 2013-08-06

WPG (TSE:3702) Reports Its Consolidated Sales of 2nd Quarter, Set Single Quarter Record High. And a Better Than Expectation Gross Profit Margin; EPS was NT$0.83, +32.4% QoQ.

 

2013/08/06

 

Benefited from increased demand of emerging markets combined with product generation shift and smartphone, tablet related components became major part of shipments, WPG, the largest distributor of semiconductor components in Asia, announced its second quarter unaudited consolidated sales reached NT$100.63 billion, set its single quarter record high. Gross Margin was 4.78%, exceeded the high side of 4.5%~4.7% guidance. Operating Margin was 1.68%, near the high side of 1.5%~1.7% expectation. Unaudited net income of second quarter was NT$1.38 billion, a 32.4% growth over previous quarter and NT$0.83 per share. Consolidated sales of first half was NT$187.19 billion, net income was NT$2.42 billion and NT$1.46 per share.

 

The profit growth has been delivered by domestic demand of emerging markets. Contribution of 3C products such as mid to low-end smartphone, tablet, wireless broadband and STB were continued growing. Non-3C segments’ contribution such as automobile, medical and industrial electronics remained healthy. Return on Working Capital (ROWC) and ROE was 10.2% and 14.5% respectively. Inventory turnover day decreased to 36 days.

 

Management guides the total sales of third quarter 2013 will be between NT$105 billion and NT$ 110 billion, with the gross margin in the range of 4.6%~4.8% and the average operating margin between 1.65%~1.85%.

 

In the second quarter of 2013, around 50 application solutions were provided in the fields of automotive (19), Industrial (16), cell phone/ communication (6), computer/peripheral (including tablet) (5) and consumer (4), focusing on applications of TPMS, automotive sensor, Infotainment, motor controller, wireless power, smart grid, remote medical care, cloud computing, smart TV.

 

Table: WPG Holdings consolidated management financials for the quarter ended June 30, 2013. (in brief)

                                                                                                                           Units:NT$ million

Income Statement (2013/1/1~2013/06/30)

 

Balance Sheet (2013/06/30)

Item

Amount

 

Item

Amount

Net Sales

187,194

 

Current Assets

118,013

Cost of Goods Sold

(178,168)

 

Accounts receivables

66,100

Gross Profit

9,026

 

Inventory

39,053

Operating Expenses

(5,957)

 

Other assets

14,197

Operating Profit

3,069

 

Total Assets

132,210

Non-op Expenses

(91)

 

Current Liabilities

87,916

Profit Before Tax

2,978

 

Accounts payables

38,959

Tax

(559)

 

LT Liabilities

5,659

Minority & Others

(1)

 

Total Liabilities

94,440

Profit After tax

2,417

 

Common Stock

16,557

EPS (Note)

1.46

 

Stockholders Equity

37,770

Net book value per share(Note)

22.75

 

Note:Based on weighted average outstanding shares.

 

 

Cash flows (2013/1/1~2013/06/30)

Item

Amount

Income before Income Tax

2,978

Change in NWC

(6,556)

Operating cash inflow /(outflow)

(4,673)

Investment cash inflow /(outflow)

(63)

Change in Financial Debt

3,084

Financing cash inflow /(outflow)

3,083

Cumulative translation adjustments

1,207

Net Cash

(445)

Beginning cash balance

8,872

Ending cash balance

8,427

 

IR contacts:Cliff Yuan/ Kathryn Chen / Zoe Peng

Tel:886-2-7712-5268 / 886-2-7712-5278 / 886-2-7712-5262

Email address: ir@WPGholdings.com

Corporate website: www.WPGholdings.com