2024/02/26
LITEON Technology Reports 2023 EPS of NT$6.36, Y-o-Y 3%
LITEON Technology (2301-tw) today reported the fourth quarter consolidated sales of ~NT$37 billion. Thanks to the growth of high-value businesses, the optimization of supply chain resilience, and the improvement of operational efficiency, the gross margin reached 22%, up 2.5ppt Y-o-Y; the operating margin was 9.3%, up 1.6ppt Y-o-Y. The R&D expense has accounted for 6.2% of the fourth quarter sales, up approximately 10%Y-o-Y, mainly focus on the power management for cloud computing, 5G, opto-semiconductor and new business. The net profits in the fourth quarter were NT$3.5 billion with EPS of NT$1.51. Meanwhile, the Board of LITEON has approved a cash dividend of NT$2.5 per share for the fourth quarter. With the distributed cash dividend of NT$2.0 for the first half of 2023, the cash dividend for the whole year of 2023 will reach NT$4.5.
The continuous improvement in profitability and operations in 2023 is attributable to the synergistic effects of ongoing centralization, digital operation management, and the introduction of AI tools.
LITEON continues to demonstrate transformational growth strategies and operational improvement results, posting year 2023 revenue of NT$148.3 billion. The gross margin and operating margin were 22% and 9.8%, up 2.8ppt and 1.1ppt Y-o-Y respectively. The net profits were NT$14.6 billion, with EPS of NT$6.36, up 3% Y-o-Y. The increase in profit growth attributable to the synergistic effects of centralization, digital operation management, and the introduction of AI tools. From 2020 to 2023, the growth of high-value businesses has driven a continuous increase in profitability. The gross margin and operating margin have grown from 17.4% and 6.5% in 2020 to 22% and 9.8% in 2023, respectively. Both profitability and product portfolio have been improved and optimized.
Through outlining the phased transformation strategy blueprint and actively introducing AI and digital tools to build an agile organization, the company value has successfully grown. In 2023, LITEON achieved three major milestones: improving profitability, increasing the proportion of growth businesses, and the business model of providing solutions.
“LITEON initiated its transformation in 2020, outlining short, mid and long-term goals to accelerate the development of high-growth areas and deploying new businesses. At the same time, we actively introduced AI and digital tools to strengthen competitiveness and build an agile and responsive organization. Four years later, with the efforts of all colleagues, LITEON has achieved the three milestones initially set: improving profitability, increasing the proportion of growth businesses, and the business model of providing solutions. The next milestone will be set for the growth of the operating scale. In addition to the organic growth of existing businesses, LITEON will simultaneously develop new businesses with high growth and high value in the future. The transformation office has built LITEON’s IoE (Internet Of Energy), with energy as the strategic core, constructing a new business blueprint and industrial ecosystem for the long-term vision. Different stage milestones are set to gradually implement the strategic blueprint and create a new era for the company. In the future, we will continue to empower the world with technology and sustainable resilience, using thorough energy management solutions, and joining hands with ecosystem partners to lead the world towards the shared vision of net-zero,” said Mr. Anson Chiu, President of LITEON Technology.
Looking forward to 2024, cloud and AI server power solutions will be the growth momentum. LITEON will be building mid and long-term competitive advantages with ecosystem partners, continuously creating corporate value.
Looking forward to 2024, the business of cloud power solutions continues to grow, and the shipment of opto-semiconductor, information technology and electronic products are expected to gradually rebound, laying a stable foundation for the revenue and profit of the core business in 2024. Facing future industry trends and challenges, LITEON will strengthen the integration of hardware, firmware, and software management capabilities. Meanwhile, it will continue to collaborate with ecosystem partners to create products and markets with more forward-looking value, and persist in building mid and long-term competitive advantages.
Press Contact
Irene Chou +886-2-8798-2888
Corporate Brand Value Development Center
LITEONtech.PR@liteon.com
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