LITE-ON Technology Reports 2019 EPS of NT$4.03, record high in 3 years, Proposes Cash DPS of NT$ 3.2, with Cash Yield of 7.3%

2020/02/26

LITE-ON Technology (2301-tw) today reported the fourth quarter of 2019 consolidated sales of NT$44.16 billion with gross margin and operating margin of 16.2% and 5.8%, up 2.8ppt and 2.1ppt YoY respectively while net profits were NT$2.41 billion with EPS of NT$1.03, attributable to the yearly growth of Power Supply and Opto-electronics in Cloud Computing, 5G+AIOT and Gaming Applications.

LITE-ON posted 2019 consolidated revenue of NT$177.95 billion, thanks to the improvement of product design, product-mix and operational efficiency, gross margin and operating margin were 15.4% and 5.3%, up 2.3ppt and 1.7ppt YoY respectively. Meanwhile, operating profits and net profits were NT$9.35 billion and 9.38 billion, up 25% and 18% YoY respectively. LITE-ON’s 2019 EPS was NT$4.03, up 18% YoY, hitting a record high for 3 years. Net cash reached NT$37.2 billion through a positive free cash flow generated from operation.

Core businesses such as Cloud computing, Opto-electronics and 5G+AIOT applications contributed over 30% of total sales and over 40% of Operating profits in 2019.

In the fourth quarter, Opto-electronics business accounted for 17% of total sales. Thanks to growth demand from 5G+AIOT applications, LED components sales posted a yearly growth. Information Technologies business accounted for 70% of total revenue, of which, stable demands were seen in high-end server/networking power management systems and server enclosure for cloud computing, and power supplies for AI smart home devices. At the same time, ongoing market share gains were posted in HIS (Human Input Solutions - PC Keyboards and Peripherals). Moreover, Storage segment accounted for 8% of total revenue.

Looking ahead, although low season and low visibility expected in the first quarter of 2020 due to COVID-19 outbreak, with employees’ safety on top of the proactive resumption of production in factories, LITE-ON has been taking active measures to ensure a safe working place in all sites while working closely with its supply chain to ensure production availability to meet global clients’ demand. LITE-ON hopes to return to the overall stable operation in the fastest period of time.

Meanwhile, LITE-ON's Board has proposed an increased 2019 cash dividend of NT$3.2 per share, thanks to the capability of generating ample free cash flow and profitability from operation, resulting in payout ratio of 79% and 7.3% cash yields, maintaining a generous and sustainable dividend policy as well as a record DPS over the decade.

Press Contact:

Julia Wang, Sr. Director of IR/PR +886-2-8798-2888 LITEONTech.IR@liteon.com