WPG (TWSE:3702) Attend Investor Conference Held by KGI SECURITIES on August 22th, 2023
WPG (TWSE:3702) Attend Investor Conference Held by KGI SECURITIES on August 22th, 2023
2023/08/22
WPG, the distributor of semiconductor components, announces 2023 Second Quarter consolidated sales, operating income, net income and EPS exceeding forecast. Consolidated sales achieved NT$156.69 billion, +8.2% QoQ. Operating income achieved NT$2.466 billion, +27% QoQ. Net Income achieved NT$2.317 billion, +238% QoQ. EPS was NT$1.14.
Due to sustained profitability and effective working capital management, 2023 Second Quarter operating cash inflow achieved NT$5.243 billion, net cash inflow of more than NT$47.6 billion for three consecutive quarters, leading to significant improvement in the company’s financial structure and cash position. 2023 Second Quarter key financial indicators Return on Equity (ROE) was 11.6%, Return on Working Capital (ROWC) was 7.5%.
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, North America and Southeast Asia customers have put into production, driving demand for semiconductor and related electronic components.
For 2023 Third quarter, based on an exchange rate assumption of NT$31 to the U.S. dollar, WPG forecasts consolidated revenue of NT$164 billion to NT$174 billion, gross margin of 3.7% to 3.9%, operating margin of 1.5 % to 1.7%, net income of NT$1.191 billion to NT$1.514 billion, EPS of NT$0.71 to NT$0.9.
Driven by 5G commercialization and IoT trends, application solutions in power, Automotive and IoT related field continue to increase, and solution webinars continue to be published since 2022, laying solid foundation for future growth in sales. To provide better value-added service and increase market share, 40 application solutions were provided to our customers, including fields in Power (14), Automotive (6), AIoT (4), Smart Home (4), Smart City (4), Wearable Devices (3), Consumer (3), Industrial (2), focusing on 200W high power density gaming adapter/ 1200V SiC IPM HVAC/ 500W LED with high power reverse buck/ 11KW three-phase totem pole PFC power supply /1kw pre-regulator power supply for bridgeless CCM-PFC/ heated HoD detection and touch multi-function steering wheel/ automotive smart gateway / iCockpit/ intelligent central control/ smart oven/ motor vibration detection/ noise canceling headphones / digital electronic signage with dual screens and different displays…etc.
Table: WPG Holdings Ltd. Consolidated Financial Statements for the year ended Jun 30, 2023 (In brief)
Units：NT$million
|
Income Statement (year ended Jun 30, 2023) |
|
Balance Sheet (Jun 30, 2023) |
||
|
Item |
Amount |
|
Item |
Amount |
|
Operating revenues |
301,443 |
|
Current Assets |
244,564 |
|
Cost of Goods Sold |
(289,737) |
|
Accounts receivables |
107,759 |
|
Gross Profit |
11,706 |
|
Inventories |
99,617 |
|
Operating Expenses |
(7,298) |
|
Other assets |
45,382 |
|
Operating income |
4,408 |
|
Total Assets |
289,946 |
|
Non-op Expenses |
60 |
|
Current Liabilities |
178,206 |
|
Profit Before Tax |
4,468 |
|
Current Borrowing |
80,070 |
|
Tax |
(1,439) |
|
Accounts payables |
75,440 |
|
Minority & Others |
(27) |
|
LT Liabilities |
27,536 |
|
Profit After tax |
3,002 |
|
Total Liabilities |
210,105 |
|
EPS - Common Stock (Note1) |
1.55 |
|
Common Stock |
16,791 |
|
Note1：Based on weighted average outstanding shares. |
|
Total Equity |
79,841 |
|
|
Cash Flow Statement (year ended Jun 30, 2023) |
|
|
Item |
Amount |
|
Income before Income Tax |
4,468 |
|
Change in NWC |
19,763 |
|
Operating cash inflow /(outflow) |
20,662 |
|
Investment cash inflow /(outflow) |
(159) |
|
Change in Financial Debt |
(23,382) |
|
Financing cash inflow /(outflow) |
(23,490) |
|
Cumulative translation adjustments |
920 |
|
Net Cash |
(2,067) |
|
Beginning cash balance |
16,597 |
|
Ending cash balance |
14,531 |
IR contacts：Cliff Yuan/ Zoe Peng
Tel：886-2-2191-0068 ext.85268/ext.85262
Email address: ir@WPGholdings.com
Corporate website: www.WPGholdings.com