2021/10/26
Coretronic Corporation Announces Third Quarter 2021 Results
Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the third quarter of 2021. For the third quarter ended on Sept. 30, 2021, Coretronic posted consolidated sales revenue of NT$13,046 million. Benefit from the peak season effect, the sales revenue grew 12% QoQ and 9% increase compared with the same period last year. Consolidated gross profit margin decreased by 0.4% to 18% from 18.4% in the previous quarter, mainly due to product mix differences, which was an increase of 0.4% from 17.6% in the same period last year. Operating income was NT$616 million, a growth of 60% from the second quarter and a significant increase of 74% from the same period last year. Net income was NT$589 million, representing a 7% increase from the previous quarter and in the same period last year. Net income attributable to equity holders of the parent company was NT$569 million, which is an increase of 4% from NT$548 million in the previous quarter and a slight decrease of 3% from NT$585 million in the same period last year. The basic EPS* for the third quarter was NT$1.46.
For the first three quarters of 2021, Coretronic reported consolidated sales revenue of NT$34,719 million, representing an increase of 12% YoY, driven by the increase in revenue of the two major product lines. Consolidated gross margin was 17.7%, increased by 0.3% compared with 17.4% in the first three quarters of 2020, mainly driven by the increase in sales revenue and plant efficiency. Operating income totaled NT$1,080 million, significant growth of 123% over the same period last year. Net income was reported at NT$1,504 million, up 48% YoY. Net income attributable to equity holders of the parent company was NT$1,504 million, an increase of 32% YoY. The basic EPS for the first three quarters of this year was NT$3.77**. Calculated on the basis of Sept. 30, 2021 outstanding shares, EPS was NT$3.85***.
In order to achieve the group’s global strategic and the comprehensive effect of resource integration, in July of this year, Coretronic Corporation adjusted the group management structure and established the Display Business Group to integrate Energy Saving products, Visual Solutions products, and the Creative Reality Business Group covering AR/MR and embedded application products, under the overall responsibility of Sarah Lin, President of Coretronic, to focus on and optimize the display product business and grow steadily. President SY Chen is responsible for the development of its own brand “Optoma”, and serves as the Chairman and CEO of Optoma Technology, Inc., to actively implement the brand management policy of "Cultivating localization while expanding globally". At the same time, the Board of Directors resolution the appointment of Ms. Ann Wu as the President on October 25, Ann will responsible for the Solution Business Group, and coordinated the operation of AIoT solutions related subsidiaries such as Intelligent MEMS/Intelligent Robotics/Intelligent Logistics Solutions, while developing and expanding the China market. Coretronic Group will realize a more efficient localized business model through the adjustment of the above organization while create higher value in the future.
“For the third quarter of 2021, the overall sales revenue of Energy Saving Business Group was NT$7,461 million, an increase of 28% QoQ and 15% YoY; the shipments were 16.68 million units, an increase of 19% QoQ and 34% YoY, thanks to the upward trend in shipments of all applications. For first three quarters of 2021, the sales revenue amounted to NT$18,404 million, and shipment was 43.25 million units, up 12% and 31% YoY, respectively, this was mainly due to the growth of TV/PID and NB model shipments driven by the WFH and distance education demand” said Ms. Sarah Lin, President of Coretronic. Looking forward to the fourth quarter of 2021, Sarah pointed out that fourth quarter is the traditional slow season. Monitor product shipments will decline, while NB product shipments will remain flat. However, TV/PID shipments are expected to maintain a growth trend due to continued customer demand. Therefore, the overall shipments of Energy Saving products are expected to remain flat in the fourth quarter. In response to the status of second factory in Vietnam, Sarah pointed out that the construction of the factory will be delayed until 1Q22 due to the impact of the Vietnam epidemic, but the mass production schedule is still set in the first half of 2023, relevant mechanical component suppliers will also in house to shorten the supply chain, and will gradually integrate the production and manufacturing bases in Vietnam. Sarah also explained the overall shipment target for Energy Saving products this year is expected to be increased to 25%~30% from the original growth rate of 20%, mainly due to the increase in TV/PID demand.
“Benefited from the growth in the shipments of various applications for education and bidding requirements, the shipment of Visual Solutions products was 210.5K unit in 3Q21, drop 3% QoQ but increase 5% YoY, while the sales revenue was NT$3,345 million, representing a 7.5% QoQ increase and 13% growth YoY, it was mainly due to the growth in shipments of SSI and large venue models that led the ASP with 11% QoQ and 7.5% YoY increase respectively. For the first three quarter of 2021, the shipment was 624K units and sales revenue was NT$9,365 million, up 11% and 19% YoY respectively, mainly due to the stay-at-home economy and sports events stimulating 4K demand, driving the increase in shipments of SSI and Large Venue models” said Ms. Sarah Lin, President of Coretronic. Looking forward to the fourth quarter of 2021, although its traditional slow season and the supply of components is still variable, Sarah expects that through the continuous development of new SSI TV and smart function platform, and the mass production of WW DLP first VRR gaming projectors, the overall shipments in fourth quarter will similar to the third quarter, and the overall shipments of Visual Solutions products will remain grow by 10%~20% in 2021.
* Basic EPS was calculated based on the total weighted average outstanding shares of each quarter (391m shares in 3Q21, 434m shares in 3Q20)
** Basic EPS was calculated based on the total weighted average outstanding share (399m shares in 2021 and 434m shares in 2020)
*** Basic EPS was calculated based on the outstanding share of the balance sheet date (391m share in 2021 and 434m shares in 2020)
For the first three quarters of 2021, Coretronic reported consolidated sales revenue of NT$34,719 million, representing an increase of 12% YoY, driven by the increase in revenue of the two major product lines. Consolidated gross margin was 17.7%, increased by 0.3% compared with 17.4% in the first three quarters of 2020, mainly driven by the increase in sales revenue and plant efficiency. Operating income totaled NT$1,080 million, significant growth of 123% over the same period last year. Net income was reported at NT$1,504 million, up 48% YoY. Net income attributable to equity holders of the parent company was NT$1,504 million, an increase of 32% YoY. The basic EPS for the first three quarters of this year was NT$3.77**. Calculated on the basis of Sept. 30, 2021 outstanding shares, EPS was NT$3.85***.
In order to achieve the group’s global strategic and the comprehensive effect of resource integration, in July of this year, Coretronic Corporation adjusted the group management structure and established the Display Business Group to integrate Energy Saving products, Visual Solutions products, and the Creative Reality Business Group covering AR/MR and embedded application products, under the overall responsibility of Sarah Lin, President of Coretronic, to focus on and optimize the display product business and grow steadily. President SY Chen is responsible for the development of its own brand “Optoma”, and serves as the Chairman and CEO of Optoma Technology, Inc., to actively implement the brand management policy of "Cultivating localization while expanding globally". At the same time, the Board of Directors resolution the appointment of Ms. Ann Wu as the President on October 25, Ann will responsible for the Solution Business Group, and coordinated the operation of AIoT solutions related subsidiaries such as Intelligent MEMS/Intelligent Robotics/Intelligent Logistics Solutions, while developing and expanding the China market. Coretronic Group will realize a more efficient localized business model through the adjustment of the above organization while create higher value in the future.
“For the third quarter of 2021, the overall sales revenue of Energy Saving Business Group was NT$7,461 million, an increase of 28% QoQ and 15% YoY; the shipments were 16.68 million units, an increase of 19% QoQ and 34% YoY, thanks to the upward trend in shipments of all applications. For first three quarters of 2021, the sales revenue amounted to NT$18,404 million, and shipment was 43.25 million units, up 12% and 31% YoY, respectively, this was mainly due to the growth of TV/PID and NB model shipments driven by the WFH and distance education demand” said Ms. Sarah Lin, President of Coretronic. Looking forward to the fourth quarter of 2021, Sarah pointed out that fourth quarter is the traditional slow season. Monitor product shipments will decline, while NB product shipments will remain flat. However, TV/PID shipments are expected to maintain a growth trend due to continued customer demand. Therefore, the overall shipments of Energy Saving products are expected to remain flat in the fourth quarter. In response to the status of second factory in Vietnam, Sarah pointed out that the construction of the factory will be delayed until 1Q22 due to the impact of the Vietnam epidemic, but the mass production schedule is still set in the first half of 2023, relevant mechanical component suppliers will also in house to shorten the supply chain, and will gradually integrate the production and manufacturing bases in Vietnam. Sarah also explained the overall shipment target for Energy Saving products this year is expected to be increased to 25%~30% from the original growth rate of 20%, mainly due to the increase in TV/PID demand.
“Benefited from the growth in the shipments of various applications for education and bidding requirements, the shipment of Visual Solutions products was 210.5K unit in 3Q21, drop 3% QoQ but increase 5% YoY, while the sales revenue was NT$3,345 million, representing a 7.5% QoQ increase and 13% growth YoY, it was mainly due to the growth in shipments of SSI and large venue models that led the ASP with 11% QoQ and 7.5% YoY increase respectively. For the first three quarter of 2021, the shipment was 624K units and sales revenue was NT$9,365 million, up 11% and 19% YoY respectively, mainly due to the stay-at-home economy and sports events stimulating 4K demand, driving the increase in shipments of SSI and Large Venue models” said Ms. Sarah Lin, President of Coretronic. Looking forward to the fourth quarter of 2021, although its traditional slow season and the supply of components is still variable, Sarah expects that through the continuous development of new SSI TV and smart function platform, and the mass production of WW DLP first VRR gaming projectors, the overall shipments in fourth quarter will similar to the third quarter, and the overall shipments of Visual Solutions products will remain grow by 10%~20% in 2021.
* Basic EPS was calculated based on the total weighted average outstanding shares of each quarter (391m shares in 3Q21, 434m shares in 3Q20)
** Basic EPS was calculated based on the total weighted average outstanding share (399m shares in 2021 and 434m shares in 2020)
*** Basic EPS was calculated based on the outstanding share of the balance sheet date (391m share in 2021 and 434m shares in 2020)
