LITEON Technology (2301-tw) today reported the second quarter consolidated sales of NT$33.3 billion, up 16% Q-o-Q; 1H 2024 sales of NT$62.1 billion. With the continuous increase in the proportion of high-value segments and strategically reducing high-volatility business to optimize the product portfolio, complemented by the synergies brought by the introduction of AI empowerment and digitalized operational management, the gross profit margin for the second quarter reached 22.2%, and the operating profit margin was 9.9%, up 1.9 and 2.1 ppt Q-o-Q, respectively. For 1H 2024, the gross profit margin was 21.3%, and the operating profit margin was 8.9%. In the second quarter, operating expenses from R&D increased by nearly 10% Q-o-Q, accounting for 5.5% of the quarter’s revenue, with a focus on AI and cloud computing, optoelectronics, 5G, and new business development. The net profits in the second quarter were NT$3.1 billion, with EPS of NT$1.36, up 30% Q-o-Q. For 1H 2024, the net profits were NT$5.5 billion, with an EPS of NT$2.4. Meanwhile, the Board of LITEON has approved a cash dividend of NT$2 per share for the second quarter of 2024. Net cash reached NT$62.5 billion, attributable to the proactive working capital management and strong positive free cash flow generated from operating activities.
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LITEON is driving mid-to-long-term growth by channeling R&D resources, making strategic investments, and M&A in promising sectors, thereby boosting future revenue potential. |
“We continue to steer the progress of our growth strategy, based on operational optimization, building the momentum for the company's mid-to-long-term revenue growth. On one hand, we are concentrating our R&D resources into new areas; on the other hand, we are continuously planning and engaging in strategic investments and M&A. In recent years, we have actively adjusted our product portfolio, reduced the proportion of high-volatility businesses, leveraged our core competencies to focus on long-term growth in high-barrier fields, such as green data center, clean mobility, and efficient infrastructure of the Internet of Energy (IoE).
These areas are part of our mid-to-long-term growth strategies, indicating that they require a longer investment and development period to mature into established industries. In addition to investing in new business, we will expand our strategic investments and M&A in the future, hoping to enhance our business, technology, and intellectual property by investing in high-growth and complementary fields to accelerate the realization of transformation synergies. Moving forward, we will strengthen profitability through new ventures, reinvest in R&D, expand our business territory, and create a virtuous cycle, laying a solid foundation for mid-to-long-term growth,” said Mr. Anson Chiu, President of LITEON Technology.
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Outlook for Q3: operations expected to outperform Q2; the high-growth core businesses are expected to drive momentum in the third quarter. |
Looking ahead to the third quarter of 2024, the performance of the three major business segments and overall operations is expected to grow compared to the second quarter. The main growth drivers come from high-value core businesses, including increased shipments of AI and cloud computing power supplies, optoelectronic semiconductors, advanced power supplies for IT applications, and intelligent input devices. Optoelectronic semiconductors are expected to grow quarter by quarter, with a strong focus on high-end applications covering AI machine vision, automotive lighting and sensing applications, industrial and renewable energy sectors. In the cloud computing business, cloud and AI power supplies and liquid cooling systems are expected to continue growing, driven by new customers and product advancements. Additionally, Information Technology & Consumer Electronics Business segment is expected to see increased shipments, driven by high-end power supplies for AI PCs and the trend of Mini LED backlit keyboards. Moreover, LITEON’s efforts in new market deployments are gradually showing results, with increased demand for low earth orbit (LEO) satellite, industrial, and gaming power supplies, injecting new operational momentum. We believe these strategic deployments will bring long-term competitive advantages to LITEON, achieving steady long-term growth.
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Irene Chou +886-2-8798-2888
Corporate Brand Value Development Center