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LITEON Technology reported first quarter consolidated sales of NT$41.2 billion up 9% Y-o-Y, hitting first quarter record high in 4 consecutive years. The sales were supported by stable growth from opto-electronics, cloud computing, 5G, AIoT and automotive applications. Thanks to the product mix optimization, well-managed global supply chain and multiple manufacturing sites with operational efficiency, gross profits and operating profits reached NT$7.1 billion and NT$3.0 billion, up 5% and 42% Y-o-Y respectively; gross profit margin and operating profit margin were 17.1% and 7.2%, of which, operating profits and margin both hit first quarter record highs. Net profits were NT$2.1 billion, with EPS of NT$0.92. Net cash reached NT$41.2 billion, attributable to the aggressive working capital management and strong positive free cash flow generated from operation.
“Global supply chain is challenged by the pandemic and the tight semiconductor supply. LITEON always has comprehensive and advanced overview in operational management. With advantages of cross-regional diversified production sites as well as flexible and quick response capacity management, LITEON still posted nearly 10% revenue yearly growth in the first quarter. With its core competence of flexibility and rapid response, LITEON joins hands with global strategic partners to focus on the development of high-growth fields such as cloud datacenters, optoelectronics, automotive electronics, 5G, and AIoT. Furthermore, LITEON continue to invest R&D resources in EV charging and on-board charging solutions, high-end power management for cloud computing, and 5G small cell. Under strategic product mix optimization, on-going delivery growth will be expected and LITEON will further improve its long-term gross profit margin and profitability. Moreover, while LITEON pursues profitable growth, it also proactively integrates ESG strategies into its corporate DNA. In addition to advocating and co-founding Taiwan Climate Partnership alliance with local 7 leading tech companies, LITEON also works with 15 suppliers to mutually promote low-carbon transition, proactively invest in green innovation and energy-saving manufacturing process, in order to strengthen resilience of sustainable supply chains, and build up circular economy for the industry,” said Mr. Anson Chiu, President of LITEON Technology.
Looking at the first quarter revenue contribution by segment, Opto-electronics and Cloud & AIoT Businesses reached record high in terms of sales, accounting for 52% of total revenue, with CAGR of 23% in past two years; Information Technology & Consumer Electronics Business (IT&CE) continued to grow steadily:
The Opto-electronics Business contributed a 21% share of total sales. Thanks to growing demand from opto-electronics used in green energy, industrial automation, wearables, AR/VR and high-end Mini LED, coupled with strong delivery of automotive electronics and EV chargers, Opto-electronics business posted with 5% yearly growth in sales.
Cloud & AIoT Business accounted for a 31% share of total sales. Thanks to the strong growth from high-end datacenter server and networking power management systems for cloud computing, high-end sever enclosures and power supplies for AI smart home devices, Cloud & AIoT posted a yearly growth of 18%.
IT&CE Business accounted for 48% of total revenue. Benefited from ongoing growth from NB and gaming power supplies, laser models of multi-function peripherals, as well as ongoing market share gains in IT keyboards and mice, IT& CE supported a consecutive 6% yearly growth.
In additional to stable growth in business, the Board has passed the following important resolutions in the first quarter of 2022:
The Board announced a cash dividend of NT$2.5 per share in the fourth quarter of 2021. Adding the cash dividend of NT$2 per share in the first half of 2021, the DPS of the full year of 2021 reaches NT$4.5, up 32% Y-o-Y, a record DPS, with a payout ratio of 75%.
The Board approved the issuance of Restricted Stock Awards (RSAs) to attract, retain and motivate critical talents, by focusing on the market demand, expanding the R&D investment, optimizing the product portfolio and creating profitable growth to the company and shareholders’ value in the long run, and further pursue a win-win for employees, company and investors.
In accordance with the company’s overall strategic planning, the outdoor lighting business will be transferred and establish a new subsidiary. Through independent operation and concentrated resources, it is expected to enhance competitiveness and business performance, and help partnership with local and global companies in intelligent transportation field to make efforts on "Roadway Intelligence," improving road safety and implement sustainable development.
The AGM will be held on May 20th, 2022.
Looking ahead to the second quarter of 2022, thanks to rapid growth from power management solutions with high wattage, high efficiency and high density in cloud computing with market share gains; opto-electronics from green energy, industrial automation, wearables and AR/VR; increasing market demand of EV chargers, vehicle lighting and ADAS; under the assumption that the pandemic will not further impact the global supply chain and logistics, a stable profit and sales growth from core businesses is expect in the second quarter of 2022