2023/10/30
LITEON Reports Q3 Net Profit of NT$4.6 Billion, up 7% Y-o-Y, with Record EPS of NT$1.99 and Record Gross Profit Margin of 23.6%, Driven from Core Business Growth
LITEON Technology (2301-tw) today reported third quarter consolidated sales of around NT$40 billion, up 7% Q-o-Q. Supported by continuous advancement in the proportion of high-end products, strengthened operational efficiency, and optimized supply chain resilience, the gross profit margin for Q3 reached 23.6%, up 4.1ppt Y-o-Y; the operating profit margin was 11.6%, up 2.1ppt Y-o-Y. Net profit was NT$4.6 billion, with EPS of NT$1.99, up 7% Y-o-Y. Through efforts on enterprise transformation in recent years, adopting digitization and intelligent management, working closely with supply chain to develop high-end products, enhancing the added value and profitability of the core business, driving both the gross profit margin and earnings per share to set new records.
LITEON continues to achieve the goal of profitable growth. Cumulated sales of first nine months of 2023 reached NT$111.4 billion, gross profit margin and operating profit margin were 22% and 10%, up 2.9ppt and 1.0ppt Y-o-Y respectively, achieving the company’s long-term profit goal of 20/10 (GPM 20%; OPM 10%). Net profit totaled NT$11.1 billion with EPS of NT$4.86, up 8% Y-o-Y. LITEON continues to invest resources in R&D in core growth areas of software, hardware development, and system integration solutions. The R&D expense reached 5.2% of total cumulative sales, up over 10% Y-o-Y.
LITEON announced the next generation AI power, “COOLITE” liquid cooling, and EV DC Charger, expanding its presence in the cloud computing and automotive fields, realizing the vision of operating and sustaining IoE energy networks.
“LITEON is taking proactive steps to overcome market and environmental challenges by continuously investing in R&D and strengthening supply chain resilience. This has enabled LITEON to launch high-value and high-growth products that meet customer needs. In the field of cloud computing, thanks to early deployment of AI power applications and technology, the new generation 5.5 kW high-end power solution has begun shipping. As a result, the overall revenue share of AI-related power in cloud power sales has reached double digits in the third quarter. LITEON unveiled its new brand “COOLITE” through launching the latest liquid cooling solution and showcased the latest integrated power management system specification with ORV3 at this month's global Open Compute Project (OCP) Summit. The on-site demonstration has received positive feedback. In terms of progress in electric vehicles, LITEON’s US subsidiary, Pii, has launched Level 3 DC EV charger, providing high-speed charging solutions from 30 kW to 180 kW, further expanding LITEON’s footprint in EV charging solutions.
For long-term growth momentum, LITEON commits itself to continuously invest in R&D resources and engage in collaborations with industry ecosystem partners. With Green Data Center, Clean Mobility, and Efficient Infrastructure as the core focus, LITEON is building an IoE (Internet of Energy) energy network that is both operational and sustainable compatible. This allows for independent product development and design that becomes a competitive advantage for LITEON,” said Mr. Anson Chiu, President of LITEON Technology.
Looking forward: On-going advancement on high-growth core businesses and global production capacity to establish long-term core competitive advantages.
Looking ahead, it is expected that the sequential growth from cloud computing and delivery growth in high-end products in IT&CE in Q4, laying a stable development foundation for overall revenue and profit. LITEON is proactively expanding global production capacity and establishing a resilient supply chain through agile and flexible operational management, linking resources from R&D centers and manufacturing bases worldwide to meet customer needs. Through gradual expansion, Vietnam is expected to become one of the largest manufacturing centers; the expansion of the plant in Dallas is proceeding smoothly, and trial production is scheduled to begin in Q4, with expected revenue contributions starting next year.
Press Contact
Irene Chou +886-2-8798-2888
Corporate Brand Value Development Division
LITEONtech.PR@liteon.com
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