2022/04/26
Coretronic Corporation Announces First Quarter 2022 Results
Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the first quarter of 2022. For the first quarter ended on Mar. 31, 2022, Coretronic posted consolidated sales revenue of NT$13,138 million, due to the traditional off-season, decrease 13% QoQ but it was 31% growth compared with the same period last year. Consolidated gross profit margin decreased by 1.8% to 15.3% from 17.1% in the previous quarter, mainly due to product mix differences, which was a decrease of 1.2% from 16.5% in the same period last year. Operating income was NT$324 million, drop 42.8% from the peak season in the fourth quarter, but a significant increase of 313% from NT$78 million in the same period last year. Net income was NT$491 million, representing an 8% decrease from the previous quarter but increase by 35% from the same period last year. Net income attributable to equity holders of the parent company was NT$479 million, which is a decrease of 9.2% from NT$527 million in the previous quarter and an increase of 24% from NT$386 million in the same period last year. The basic EPS* for the first quarter was NT$1.22.
“For the first quarter of 2022, the overall sales revenue of Energy Saving Business Group was NT$7,431 million, an decrease of 15% QoQ due to the off-season effect, and a significant increase of 45% YoY, mainly due to the overall substantial growth in shipments of various product lines. The shipments were 14.85 million units, decrease 16% QoQ, but up 19% from the same period last year.” said Ms. Sarah Lin, President of Coretronic. Looking forward to the second quarter of 2022, Sarah pointed out that the risk of the Russian-Ukraine war and the COVID-19 pandemic has not decreased, material shortage and the increase in transportation costs caused by the cities lockdown in China from the beginning of April will continue to affect the operations. Therefore, it is estimated that the overall shipment of Energy Saving products in the second quarter will decrease by about 30% QoQ. We will increase the capacity utilization in May-June to reduce the variance. Looking forward to the future development of operations, Sarah said that due to the continued impact on the supply chain due to the uncertainty of the overall economy and the counterattack of the pandemic, the Energy Saving Business Group will aim for steady growth. In addition to actively deploying optimal customer and product portfolios, accelerating automated and lean production, the continue development of new technology platforms and green product technologies will foster future growth momentum. It is expected that the overall shipments with single digit growth YoY, mainly due to the increase in TV/PID demand and the new business of NB application.
“The shipment of Visual Solutions products was 281K unit in 1Q22, up 14% QoQ and 43% YoY respectively, while the sales revenue was NT$4,158 million, representing a 20% QoQ increase and 43% growth YoY, it was mainly driven by the shipment growth of home entertainment and smart Pico projectors,” said Ms. Sarah Lin. “Although the lockdown in East China has affected the supply chain and production capacity, due to the continued strong demand for home entertainment and smart Pico projection products, as well as the start of shipment of new immersive products, the overall shipment is expected to increase by about 30% QoQ in 2Q22.”
Looking into future development, Sarah said that in the process of changing consumer behavior due to the pandemic, will fully accelerate the trend of replacing 1080p with 4K in home theater and laser TV products, upgrade the solid-state light source SSI product portfolio and interactive solutions, while expand the smart Pico market aggressively, continue to develop the core technology of large venue, and further enhance the company's operational growth with a complete product line. Therefore, the overall shipment in 2022 will maintain the expectation of grow by more than 50% YoY. Looking into 2022 overall development strategy, the company will continue to optimize the innovative display systems and total solutions, while focus on high value-added products and multiple visual solutions, cultivate and develop intelligent service platforms for AI, big data, cloud technology, and intelligent interaction to expand growth momentum as well as lead future growth trends.
* Basic EPS was calculated based on the total weighted average outstanding shares of each quarter (391m shares in 1Q22 and 4Q21, 416m shares in 1Q21)
“For the first quarter of 2022, the overall sales revenue of Energy Saving Business Group was NT$7,431 million, an decrease of 15% QoQ due to the off-season effect, and a significant increase of 45% YoY, mainly due to the overall substantial growth in shipments of various product lines. The shipments were 14.85 million units, decrease 16% QoQ, but up 19% from the same period last year.” said Ms. Sarah Lin, President of Coretronic. Looking forward to the second quarter of 2022, Sarah pointed out that the risk of the Russian-Ukraine war and the COVID-19 pandemic has not decreased, material shortage and the increase in transportation costs caused by the cities lockdown in China from the beginning of April will continue to affect the operations. Therefore, it is estimated that the overall shipment of Energy Saving products in the second quarter will decrease by about 30% QoQ. We will increase the capacity utilization in May-June to reduce the variance. Looking forward to the future development of operations, Sarah said that due to the continued impact on the supply chain due to the uncertainty of the overall economy and the counterattack of the pandemic, the Energy Saving Business Group will aim for steady growth. In addition to actively deploying optimal customer and product portfolios, accelerating automated and lean production, the continue development of new technology platforms and green product technologies will foster future growth momentum. It is expected that the overall shipments with single digit growth YoY, mainly due to the increase in TV/PID demand and the new business of NB application.
“The shipment of Visual Solutions products was 281K unit in 1Q22, up 14% QoQ and 43% YoY respectively, while the sales revenue was NT$4,158 million, representing a 20% QoQ increase and 43% growth YoY, it was mainly driven by the shipment growth of home entertainment and smart Pico projectors,” said Ms. Sarah Lin. “Although the lockdown in East China has affected the supply chain and production capacity, due to the continued strong demand for home entertainment and smart Pico projection products, as well as the start of shipment of new immersive products, the overall shipment is expected to increase by about 30% QoQ in 2Q22.”
Looking into future development, Sarah said that in the process of changing consumer behavior due to the pandemic, will fully accelerate the trend of replacing 1080p with 4K in home theater and laser TV products, upgrade the solid-state light source SSI product portfolio and interactive solutions, while expand the smart Pico market aggressively, continue to develop the core technology of large venue, and further enhance the company's operational growth with a complete product line. Therefore, the overall shipment in 2022 will maintain the expectation of grow by more than 50% YoY. Looking into 2022 overall development strategy, the company will continue to optimize the innovative display systems and total solutions, while focus on high value-added products and multiple visual solutions, cultivate and develop intelligent service platforms for AI, big data, cloud technology, and intelligent interaction to expand growth momentum as well as lead future growth trends.
* Basic EPS was calculated based on the total weighted average outstanding shares of each quarter (391m shares in 1Q22 and 4Q21, 416m shares in 1Q21)
