WPG Holdings Reports Q1 2018 Consolidated Sales, Operating Income and Net Income, Exceed Forecast

By WPG AmericasMay 3, 2018

WPG Holdings (TSE:3702) Reports First Quarter 2018 Consolidated Sales, Operating Income and Net Income Exceed Forecast. Net Income Set Quarterly Second Record High. EPS was NT$1.04.

May 2, 2018

Benefited from growing shipments of 3C, Internet of Things (IoT), automotives and cloud products, WPG Holdings, the largest distributor of semiconductor components in Asia, announce their first quarter 2018 consolidated sales, operating income and net income exceed forecast.

Consolidated sales reached NT$123.412 billion, representing a 3.7% increase over last year. With optimized product portfolios and efficient expense control, operating expenses to sales ratio was 2.37% and driving operating income reached NT$2.44 billion, representing a 6.3% increase over last year. Operating margin was 1.95%, reaching a six-year high this quarter. Contribution from FX gains about NT$0.21 billion, net income grew 2.4% to NT$1.891 billion, setting a quarterly second record high. EPS was NT$1.04 per share.

Based on the exchange rate assumption of 1 US dollar to 29.2 NT dollars, management guides the total sales of the second quarter of 2018 will be between NT$127 billion and NT$140 billion, with a gross margin in the range of 4.1%~4.3% and operating margin between 1.85%~1.98%.

This profit growth has been driven by the continued growing demand of 4G and 3G smart phones, computers, wireless broadband, and cloud servers. Non-3C segments’ contribution such as automotives, industrial electronics and power saving have remained healthy. With increased profit and improving operating efficiency, key financial indices: Return on Working Capital (ROWC) and ROE was 10.1% and 14.6% respectively.

Te Board of Directors also resolved distribution of NT$2.4 cash dividend per share and NT$0.8 per share for capital reduction. If the annual general meeting approves both resolutions, shareholders will receive NT$3.2 per share this year.

In the first quarter of 2018, driven by the IoT, 55 application solutions were provided in the fields of Power (24), Industrial (10), Smart Home (9), Smart City (9), Automotive (2), Security (1), focusing on applications of single-switch power factor converter, 300W two-way charging, LLC synchronous rectification, 15W single-coil wireless charging, quick charge 3.0, brushless DC motor, photovoltaic plant monitoring system, 1200V SiC-MOSFET, 3D printer with stepping motor, gas sensor, DALI 2.0 Lighting, smart garden, charging pile, and digital dashboard.

WPG Americas is a member of WPG Holdings. 

Table: WPG Holdings Consolidated Management Financials for the year ended March 31, 2018 (in brief)

Units: NT$million

Income Statement (1/1/2018 - 3/31/2018)

 

Balance Sheet (3/31/2018)

Item

Amount

 

Item

Amount

Operating revenues

123,412

 

Current Assets

165,623

Cost of Goods Sold

(118,086)

 

Accounts receivables

85,849

Gross Profit

5,326

 

Inventories

62,263

Operating Expenses

(2,922)

 

Other assets

15,365

Operating income

2,404

 

Total Assets

180,988

Non-op Expenses

(56)

 

Current Liabilities

120,497

Profit Before Tax

2,348

 

Current Borrowing

58,727

Tax

(443)

 

Accounts payables

52,817

Minority & Others

(14)

 

LT Liabilities

6,862

Profit After tax

1,891

 

Total Liabilities

128,587

EPS (Note1)

1.04

 

Common Stock

18,251

Net book value per share (Note 1)

28.41

 

Total Equity

52,401

Note1:Based on weighted average outstanding shares.

Cash Flows (1/1/2018 - 3/31/2018)

Item

Amount

Income before Income Tax

2,348

Change in NWC

7,138

Operating cash inflow /(outflow)

5,527

Investment cash inflow /(outflow)

(152)

Change in Financial Debt

(4,398)

Financing cash inflow /(outflow)

(4,379)

Cumulative translation adjustments

(1,450)

Net Cash

(453)

Beginning cash balance

7,098

Ending cash balance

6,645

 

Q2 2018 Forecast

Item

Amount

Revenue

127,000

~

140,000

Gross Profit

5,207

~

6,020

Gross Margin

4.10%

~

4.30%

Operating Expenses

2,858

~

3,248

Operating Income

2,349

~

2,772

Operating Margin

1.85%

~

1.98%

Profit Before Tax

2,023

~

2,434

Profit After Tax

1,599

~

1,928

EPS (NT$) (Note 1)

0.88

~

1.06

Note: Based on weighted average outstanding shares.

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