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LITEON Technology (2301-tw) reported second quarter consolidated sales of NT$40.68 billion up 8% Q-o-Q, supported by stable growth from cloud computing, AIoT, opto-electronics, automotive electronics, notebook PC and gaming products. Thanks to the product mix optimization and operational efficiency improvement, gross profits and operating profits reached NT$7.99 billion and NT$3.8 billion, up 19% and 80% Q-o-Q respectively; gross profit margin and operating profit margin were 19.7% and 9.4%, up 1.9ppt and 3.8ppt Q-o-Q, hitting second quarter record highs. Net profits were NT$4.03 billion, up 17% Y-o-Y, with EPS of NT$1.74, posted second highest quarterly record. Net cash reached NT$48.97 billion, attributable to the strong positive free cash flow generated from operation.
Resulting from the solid order intake and operation in the first half of 2021, the accumulative sales reached NT$78.4 billion, 5% Y-o-Y, while gross margin and operating margin were 18.8% and 7.6%, up 1.5ppt and 1.6ppt YoY respectively. In the first half, gross profits and operating profits reached NT$14.71 billion and NT$5.91 billion, up 15% and 34% Y-o-Y respectively; and net profits were NT$8.3 billion with an EPS of NT$3.57, up 65% YoY, another record first-half profit margins and EPS.
In the second quarter, Opto-electronics accounted for 21% share of total sales. Thanks to the growing demand from LED components driven by invisible LEDs used in industrial automation, 5G and AIoT applications, UV LED applied to medical, disinfection, water and air purification, and increasing shipment of Mini LED and automotive LED lighting, coupled with shipment growth of LED vehicle lighting supported coupled with shipment growth of LED vehicle lighting supported coupled with shipment growth of LED vehicle lighting supported coupled with shipment growth of LED vehicle lighting supported Opto-electronics posted ongoing growths
Cloud & AIoT business contributed a 27% share of total sales. Thanks to stable demand from datacenter server and networking power management systems for cloud computing, Cloud & AIoT posted a revenue growth of nearly 20% Q-o-Q.
Information Technology & Consumer Electronics business accounted for 52% of total revenue, of which, NB and gaming power supplies, laser models of Multi-Function Peripherals, IT keyboards and mice posted consecutive quarterly delivery growth.
“LITEON’s profitability has improved significantly in the past year mainly resulting from multiple breakthrough in new markets, new customers and new applications. Looking forward, with the continued shipment growth from new generation of power management systems for datacenters, the better visibility of high-end Opto-semiconductor and Mini LED niche backlight products, coupled with the increasing demand of electric vehicle chargers, we expect to see the ongoing growth in the third quarter.” said Mr. Anson Chiu, President of LITEON Technology.
The resolutions of Board of Directors Meeting announced：
- Shares repurchase: To motivate employees, the Board has approved to repurchase up to 40,000,000 shares, around 1.7% of the Company’s issued shares from Taiwan Exchange Market, from July 30th to September 29th, for transferring shares to employees. The repurchase price range is NTD$41.23 to NTD$89.55 per share, and the total repurchase amount is up to NT$3.58 billion.
- To align business performance with shareholders’ interests, the Board has approved a NT$2 cash dividend per share in the First Half of 2021.
- Approved to hold LITEON 2021 Annual General Meeting on August 26th, 2021.