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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

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