Photovoltaic Products Such As UV LEDs Added Momentum, And Lite-On Technology Performed Well In The First Quarter

- May 05, 2020-

Lite-On Technology held an online legal seminar yesterday (29), announcing the net profit after tax in the first quarter of 1.572 billion yuan (NTD, the same below), a quarterly decrease of 35% and an annual increase of 7%, a two-year high, single Quarterly net profit per share was 0.68 yuan.


The gross profit margin in the first quarter reached 14.5%, an increase of 1.4 percentage points year-on-year, the highest point in the same period in seven years; the operating net profit was 752 million yuan, a quarterly decrease of 71% and an annual decrease of 35%. Among them, due to the reorganization loss of the recognized subsidiary Honghui, The affected numbers of gross profit margin and net operating profit margin reached 0.2 and 0.4 percentage points respectively.


According to the proportion of revenue from various businesses, optoelectronics accounted for 19% in the first quarter. Due to the increase in demand for UV LED and Internet of Things (IoT) related products used in people's livelihood medical, disinfection, water and air purification, the optoelectronics business net profit increased annually 3.7 times, a new high in six quarters, the main kinetic energy for profit in the previous quarter.


Information products accounted for 65% of revenue and net profit decreased by 38% year-on-year. Main products shipped include cloud computing high-end servers, Netcom equipment power management systems, notebook computer power products and server cases, keyboards, mice and other stable demand; storage devices Revenue accounted for 11%.


The legal person is concerned about the impact of passive component price fluctuations on gross profit margins. Chen Guangzhong said that passive components had no significant impact on gross profit margins in the first half of the year. At present, stocks are prepared to respond. As for the impact of the second half of the year, we still need to observe the trend of final consumer market demand.


Guangbao Chief Executive Officer Chen Guangzhong said that this season comes from the growth of cloud computing, optoelectronic products and 5G + AIoT applications, as well as the need for remote work to drive NB, e-sports and games. The revenue and profit will be better than the previous quarter. Based on the number of working days in mainland China, this quarter increased by 18% compared with the previous quarter, which can be used as a reference for revenue growth.


As for the operating situation in the second half of the year, Chen Guangzhong admitted that the European and American markets are still not in operation, most of them are remote offices, and visibility is not high. The demand in the second quarter is very strong. The main reason is that the access racks have been emptied. However, it is still necessary to observe the situation of terminal channel degeneration.


Although the environment is full of uncertainty, he emphasized that internal goals still hope that the annual net profit per share performance will continue to grow. Even if the revenue is not good, but through the improvement of gross profit margin and operating net profit margin, the profitability will be strengthened. Profitability is better than revenue performance. (Source: Taiwan Economic Daily)