2022/11/01
Coretronic Corporation Announces Third Quarter 2022 Results
Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the third quarter of 2022. For the third quarter ended on Sept. 30, 2022, Coretronic posted consolidated sales revenue of NT$12,903 million, driven by slight growth of two major product lines, revenue increased by 3% from the second quarter and decreased by 1% from the same period last year. Consolidated gross profit was 20.8%, an increase of 0.5% from 20.3% in the previous quarter, mainly due to the increase in plant utilization rate and product mix differences, and an increase of 2.8% from 18% in the same period last year, due to favorable exchange rate and product mix optimization. Operating income was NT$774 million, representing an increase of 13% and 26% compared to the consolidated operating profit of NT$685 million in the second quarter and NT$616 million in the same period last year, respectively. Net income was NT$747 million, representing an 11% decrease from the previous quarter and 27% growth from the same period last year. Net income attributable to equity holders of the parent company was NT$697 million, which is a decrease of 14% from NT$811 million in the previous quarter and an increase of 23% from NT$569 million in the same period last year. The basic EPS* for the third quarter was NT$1.78.
For the first three quarter of 2022, Coretronic reported consolidated sales revenue of NT$38,612 million, representing an increase of 11% YoY, driven by a sharp increase of 69% in revenue from Visual Solutions products compared to the same period last year. With favorable exchange rates and optimized product mix, consolidated gross margin was 18.8%, increased by 1.1% compared with 17.7% in the first three quarter of 2021. Operating income totaled NT$1,782 million as a significant growth of 65% over the same period last year. Net income was reported at NT$2,079 million, growing 38% from NT$1,504 million in the same period last year. Net income attributable to equity holders of the parent company was NT$1,987 million, an increase of 32% YoY. The basic EPS* for the first three quarter of this year was NT$5.08, which was a meaningful increase from NT$3.77* based on the weighted average outstanding shares in the same period last year and NT$3.85** calculated on the basis of Sept. 30, 2021 outstanding shares.
“For the third quarter of 2022, the overall sales revenue of Energy Saving Business Group was NT$5,350 million, increase 2% QoQ but decrease 28% YoY mainly due to the continued weak demand for Monitor/NB models. The shipments were 8.49 million units, decreasing 10% QoQ and dropping 49% from the same period last year. For the first three quarter of 2022, the sales revenue amounted to NT$18,024 million and the shipment was 32.74 million units, decrease of 2% and 24% YoY, respectively” said Ms. Sarah Lin, President of Coretronic. Looking forward to the fourth quarter of 2022, Sarah pointed out that the overall industry inventory is still in the adjustment period. In addition, the negative factors affecting consumer buying sentiment such as the Russian-Ukrainian war and inflation still exist. The demand for Monitor/NB models continues to be weak, while TV/PID models enter the off-season. Therefore, it is estimated that the overall shipments of Energy Saving products in the fourth quarter will decline compared to the third quarter, and the overall shipments of Energy Saving products in 2022 are expected to decrease by 20-30% YoY.
Benefiting from the increasing demand for large venue commercial projectors, the shipment of Visual Solutions products in the third quarter was 414K units, and the sales revenue was NT$5,990 million, an increase of 1% and 6% compared with the second quarter, respectively, and a significant increase of 97% and 80% respectively over the same period last year. For the first three quarter of 2022, the shipment was 1.1 million units and sales revenue was NT$15,803 million, increasing 77% and 69% YoY respectively, mainly benefited from the lifting of lockdowns in Europe and the United States to led the demand increase from home entertainment, smart Pico projections and large venue commercial models.” said Ms. Sarah Lin. Regarding the operation in 4Q22, Sarah pointed out that the demand for Pro-AV, education/high-end engineering models continued to recover, but the high inflation and slowing economic activity caused the demand for consumer products to cool down. Therefore, the overall shipment of Visual Solutions products may slow down in 4Q22. However, there is still a chance to stimulate buying during the world cup sports events and the holiday season. The overall shipment of imaging products in 2022 is expected to grow by about 60% year-on-year.
*Basic EPS was calculated based on the total weighted average outstanding share (391m shares in 2022 and 399m shares in 2021)
**Basic EPS was calculated based on the outstanding share of the balance sheet date (391m shares in 2022 and 2021)
For the first three quarter of 2022, Coretronic reported consolidated sales revenue of NT$38,612 million, representing an increase of 11% YoY, driven by a sharp increase of 69% in revenue from Visual Solutions products compared to the same period last year. With favorable exchange rates and optimized product mix, consolidated gross margin was 18.8%, increased by 1.1% compared with 17.7% in the first three quarter of 2021. Operating income totaled NT$1,782 million as a significant growth of 65% over the same period last year. Net income was reported at NT$2,079 million, growing 38% from NT$1,504 million in the same period last year. Net income attributable to equity holders of the parent company was NT$1,987 million, an increase of 32% YoY. The basic EPS* for the first three quarter of this year was NT$5.08, which was a meaningful increase from NT$3.77* based on the weighted average outstanding shares in the same period last year and NT$3.85** calculated on the basis of Sept. 30, 2021 outstanding shares.
“For the third quarter of 2022, the overall sales revenue of Energy Saving Business Group was NT$5,350 million, increase 2% QoQ but decrease 28% YoY mainly due to the continued weak demand for Monitor/NB models. The shipments were 8.49 million units, decreasing 10% QoQ and dropping 49% from the same period last year. For the first three quarter of 2022, the sales revenue amounted to NT$18,024 million and the shipment was 32.74 million units, decrease of 2% and 24% YoY, respectively” said Ms. Sarah Lin, President of Coretronic. Looking forward to the fourth quarter of 2022, Sarah pointed out that the overall industry inventory is still in the adjustment period. In addition, the negative factors affecting consumer buying sentiment such as the Russian-Ukrainian war and inflation still exist. The demand for Monitor/NB models continues to be weak, while TV/PID models enter the off-season. Therefore, it is estimated that the overall shipments of Energy Saving products in the fourth quarter will decline compared to the third quarter, and the overall shipments of Energy Saving products in 2022 are expected to decrease by 20-30% YoY.
Benefiting from the increasing demand for large venue commercial projectors, the shipment of Visual Solutions products in the third quarter was 414K units, and the sales revenue was NT$5,990 million, an increase of 1% and 6% compared with the second quarter, respectively, and a significant increase of 97% and 80% respectively over the same period last year. For the first three quarter of 2022, the shipment was 1.1 million units and sales revenue was NT$15,803 million, increasing 77% and 69% YoY respectively, mainly benefited from the lifting of lockdowns in Europe and the United States to led the demand increase from home entertainment, smart Pico projections and large venue commercial models.” said Ms. Sarah Lin. Regarding the operation in 4Q22, Sarah pointed out that the demand for Pro-AV, education/high-end engineering models continued to recover, but the high inflation and slowing economic activity caused the demand for consumer products to cool down. Therefore, the overall shipment of Visual Solutions products may slow down in 4Q22. However, there is still a chance to stimulate buying during the world cup sports events and the holiday season. The overall shipment of imaging products in 2022 is expected to grow by about 60% year-on-year.
*Basic EPS was calculated based on the total weighted average outstanding share (391m shares in 2022 and 399m shares in 2021)
**Basic EPS was calculated based on the outstanding share of the balance sheet date (391m shares in 2022 and 2021)
