WPG Attend Investor Conference Held by KGI SECURITIES on November 15th, 2022
WPG, the largest distributor of semiconductor components globally, announces 2022 Third Quarter consolidated sales and operating income hitting second record high for the period, achieved NT$189.823 billion and NT$3.558 billion respectively. Contributing from investment income and foreign exchange income, net income of NT$2.762 billion with EPS NT$1.64 exceeding high range forecast and hitting second record high for the period, it is also included in other comprehensive income, further improve the company's equity. YTD consolidated sales, operating income and net income achieved NT$598.744 billion, +3.4% YoY, NT$11.554 billion, +9.7% YoY and NT$9.103 billion, +3.5% YoY, respectively. EPS was NT$5.18
Benefited from profit growth, 2022 third quarter key financial indicators Return on Equity (ROE) was 14.3%, Return on Working Capital (ROWC) was 7.9%.
The reasons for the above revenue and net income growth is the downstream customers continuously invest in networking and peripheral equipment and server, growing demand for automation drives industrial electronics, and automotive electronics related non-3C applications remains strong. In addition, driven by North America and Southeast Asia customers have put into production, which has led to double-digit revenue growth in the regions. The reasons also drive the demand for semiconductor and related electronic components.
For 2022 Fourth Quarter, based on an exchange rate assumption of NT$32 to the U.S. dollar, WPG forecasts consolidated revenue of NT$175 billion to NT$185 billion, gross margin of 3.7% to 3.9%, operating margin of 1.7% to 1.9%, net income of NT$1.312 billion to NT$1.746 billion, EPS of NT$0.78 to NT$1.04.
While striving to increase profit and market share, WPG actively adopts ESG practices for sustainable development. Recently, WPG wins two TCSA awards, namely the Top 100 Sustainable Model Enterprises and Corporate Sustainability Report Gold Awards.
Driven by 5G commercialization and IoT trends, application solutions in power, Automotive and IoT related field continue to increase, laying solid foundation for future growth in sales. To provide better value-added service and increase market share, 41 application solutions were provided to our customers, including fields in Power (14), AIoT (6), Smart Home (6), Wearable Devices (4), Industrial (4), Consumer (3), Automotive (2), Smart City (1), Computer and related applications (1), focusing on 1KW double-boost PFC power, 1-4 cell Battery Charger, MCU digital control 3KW communication power supply, USB PD Sink Controller cordless power tools, AI facial recognition access control system, machine to Intelligence system, human body detection, Wi-Fi 6 home air quality monitoring, low drop charging compartment, three microphone noise reduction for call, industrial battery storage monitoring, HDMI2.1 splitter, digital key…etc.
Table: WPG Holdings Ltd. Consolidated Financial Statements for the nine months ended September 30, 2022 (In brief)
Units：NT$million
|
Income Statement (nine months ended September 30, 2022) |
|
Balance Sheet (September 30, 2022) |
||
|
Item |
Amount |
|
Item |
Amount |
|
Operating revenues |
598,744 |
|
Current Assets |
314,817 |
|
Cost of Goods Sold |
(575,763) |
|
Accounts receivables |
139,175 |
|
Gross Profit |
22,981 |
|
Inventories |
137,535 |
|
Operating Expenses |
(11,427) |
|
Other assets |
42,242 |
|
Operating income |
11,554 |
|
Total Assets |
357,060 |
|
Non-op Expenses |
(520) |
|
Current Liabilities |
233,064 |
|
Profit Before Tax |
11,034 |
|
Current Borrowing |
116,969 |
|
Tax |
(1,874) |
|
Accounts payables |
96,066 |
|
Minority & Others |
(57) |
|
LT Liabilities |
35,628 |
|
Profit After tax |
9,103 |
|
Total Liabilities |
272,599 |
|
EPS - Common Stock (Note1) |
5.18 |
|
Common Stock |
16,791 |
|
Note1：Based on weighted average outstanding shares. |
|
Total Equity |
84,460 |
|
|
Cash Flow Statement (nine months ended September 30, 2022) |
|
|
Item |
Amount |
|
Income before Income Tax |
11,034 |
|
Change in NWC |
(36,199) |
|
Operating cash inflow /(outflow) |
(33,057) |
|
Investment cash inflow /(outflow) |
(3,472) |
|
Change in Financial Debt |
31,220 |
|
Cash Dividends |
(6,277) |
|
Financing cash inflow /(outflow) |
24,447 |
|
Cumulative translation adjustments |
12,244 |
|
Net Cash |
162 |
|
Beginning cash balance |
14,408 |
|
Ending cash balance |
14,570 |
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