2022/07/26
Coretronic Corporation Announces Second Quarter 2022 Results
Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the second quarter of 2022. For the second quarter ended on June 30, 2022, Coretronic posted consolidated sales revenue of NT$12,571 million. Affected by the materials shortage and poor transportation caused by the lockdown in China, revenue declined slightly by 4% from the previous quarter but it was 8% growth compared with the same period last year. Consolidated gross profit was 20.3%, an increase of 5% from 15.3% in the previous quarter and an increase of 1.9% from 18.4% in the same period last year, mainly due to favorable exchange rate and product mix differences. Operating income was NT$685 million, representing a significant increase of 111% and 78% compared to the consolidated operating profit of NT$324 million in the first quarter and NT$386 million in the same period last year, respectively. Net income was NT$841 million, representing a 71% increase from the previous quarter and 52% growth from the same period last year. Net income attributable to equity holders of the parent company was NT$811 million, which is an increase of 69% from NT$479 million in the previous quarter and an increase of 48% from NT$548 million in the same period last year. The basic EPS* for the second quarter was NT$2.08.
For the first half of 2022, Coretronic reported consolidated sales revenue of NT$25,709 million, representing an increase of 19% YoY, driven by the increase in revenue of the two major product lines. Consolidated gross margin was 17.7%, slightly increased by 0.1% compared with 17.6% in the first half of 2021. Operating income totaled NT$1,009 million as a significant growth of 117% over the same period last year. Net income was reported at NT$1,332 million, growing 46% from NT$915 million in the same period last year. Net income attributable to equity holders of the parent company was NT$1,290 million, an increase of 38% YoY. The basic EPS* for the first half of this year was NT$3.3, which was an increase from NT$2.32** based on the weighted average outstanding shares in the same period last year and NT$2.39*** calculated on the basis of June 30, 2021 outstanding shares.
“For the second quarter of 2022, the overall sales revenue of Energy Saving Business Group was NT$5,243 million, an decrease of 29% QoQ due to the off-season and customer inventory adjustment effect, and a 10% decrease YoY. The shipments were 9.4 million units, decreasing 37% QoQ and dropping 33% from the same period last year. For 1H of 2022, the sales revenue amounted to NT$12,674 million, an increase of 16% over the same period last year, and the shipment was 24.25 million units, a decrease of 9% YoY, mainly due to the increase in the proportion of large-size TV/PID and NB models shipped that drove the ASP to increase by 27% YoY” said Ms. Sarah Lin, President of Coretronic. Looking forward to the third quarter of 2022, Sarah pointed out that although the demand for Monitor/NB models is still weak, the shipment of TV/PID models will increase month by month. Therefore, it is estimated that the overall shipment of Energy Saving products in the third quarter will be similar to second quarter. Regarding the overall operation and development of the Energy Saving Business Group, Sarah said that due to affected by the Russian-Ukraine war, interest rate hikes by central banks, high inflation, and China's lockdown, the global economic growth continued to slow down. It is expected that the TV/PID models of the Energy Saving Business Group may be flat or slightly increased in the fourth quarter after the rebound in the third quarter; Monitor/NB models will continue to be weak due to consumer demand slowdown and conservative corporate spending; the overall product shipment in 2022 is estimated to decrease by about 20% YoY, but Coretronic will continue to pay attention to the overall market situation and work closely with customers and the supply chain to achieve more operational achievements.
Due to the substantial increase in shipments of full product portfolio, the shipment of Visual Solutions products in 2Q22 was 409K units, and the sales revenue was NT$5,654 million, an increase of 46% and 36% compared with the first quarter, respectively, and a substantial increase of 89% and 82% respectively over the same period last year. For 1H of 2022, the shipment was 691K units and sales revenue was NT$9,813 million, increasing 67% and 63% YoY respectively, mainly benefited from the continued growth in shipments of home entertainment and smart Pico projection products, the gradual lifting of lockdowns in Europe and the United States, as well as the increase in demand for commercial projectors such as large venue models” said Ms. Sarah Lin. “Due to the increase in end demand driven by coming sports events and tenders, the overall shipment is expected to increase by more than 10% QoQ in 3Q22.” Looking into future development, Sarah said that although the Russian-Ukraine war, inflation and the devaluation of the Euro have suppressed the demand for consumer products with the gradual recovery of the ProAV market, the demand for education/high-end engineering models continues to grow up, and the new smart Pico platform is expected to be mass-production at the end of 4Q22 and booming in 2023. The overall competitiveness of Visual Solutions Business Group will steadily improve, and the overall shipment in 2022 will be revised up from the forecast of an annual growth of 50% to an annual growth of 70%.
* Basic EPS was calculated based on the total weighted average outstanding shares of each quarter (391m shares in 2Q22, 1Q22 and 2Q21)
**Basic EPS was calculated based on the total weighted average outstanding share (391m shares in 1H22 and 403m shares in 1H21)
***Basic EPS was calculated based on the outstanding share of the balance sheet date (391m shares in 2022 and 2021)
For the first half of 2022, Coretronic reported consolidated sales revenue of NT$25,709 million, representing an increase of 19% YoY, driven by the increase in revenue of the two major product lines. Consolidated gross margin was 17.7%, slightly increased by 0.1% compared with 17.6% in the first half of 2021. Operating income totaled NT$1,009 million as a significant growth of 117% over the same period last year. Net income was reported at NT$1,332 million, growing 46% from NT$915 million in the same period last year. Net income attributable to equity holders of the parent company was NT$1,290 million, an increase of 38% YoY. The basic EPS* for the first half of this year was NT$3.3, which was an increase from NT$2.32** based on the weighted average outstanding shares in the same period last year and NT$2.39*** calculated on the basis of June 30, 2021 outstanding shares.
“For the second quarter of 2022, the overall sales revenue of Energy Saving Business Group was NT$5,243 million, an decrease of 29% QoQ due to the off-season and customer inventory adjustment effect, and a 10% decrease YoY. The shipments were 9.4 million units, decreasing 37% QoQ and dropping 33% from the same period last year. For 1H of 2022, the sales revenue amounted to NT$12,674 million, an increase of 16% over the same period last year, and the shipment was 24.25 million units, a decrease of 9% YoY, mainly due to the increase in the proportion of large-size TV/PID and NB models shipped that drove the ASP to increase by 27% YoY” said Ms. Sarah Lin, President of Coretronic. Looking forward to the third quarter of 2022, Sarah pointed out that although the demand for Monitor/NB models is still weak, the shipment of TV/PID models will increase month by month. Therefore, it is estimated that the overall shipment of Energy Saving products in the third quarter will be similar to second quarter. Regarding the overall operation and development of the Energy Saving Business Group, Sarah said that due to affected by the Russian-Ukraine war, interest rate hikes by central banks, high inflation, and China's lockdown, the global economic growth continued to slow down. It is expected that the TV/PID models of the Energy Saving Business Group may be flat or slightly increased in the fourth quarter after the rebound in the third quarter; Monitor/NB models will continue to be weak due to consumer demand slowdown and conservative corporate spending; the overall product shipment in 2022 is estimated to decrease by about 20% YoY, but Coretronic will continue to pay attention to the overall market situation and work closely with customers and the supply chain to achieve more operational achievements.
Due to the substantial increase in shipments of full product portfolio, the shipment of Visual Solutions products in 2Q22 was 409K units, and the sales revenue was NT$5,654 million, an increase of 46% and 36% compared with the first quarter, respectively, and a substantial increase of 89% and 82% respectively over the same period last year. For 1H of 2022, the shipment was 691K units and sales revenue was NT$9,813 million, increasing 67% and 63% YoY respectively, mainly benefited from the continued growth in shipments of home entertainment and smart Pico projection products, the gradual lifting of lockdowns in Europe and the United States, as well as the increase in demand for commercial projectors such as large venue models” said Ms. Sarah Lin. “Due to the increase in end demand driven by coming sports events and tenders, the overall shipment is expected to increase by more than 10% QoQ in 3Q22.” Looking into future development, Sarah said that although the Russian-Ukraine war, inflation and the devaluation of the Euro have suppressed the demand for consumer products with the gradual recovery of the ProAV market, the demand for education/high-end engineering models continues to grow up, and the new smart Pico platform is expected to be mass-production at the end of 4Q22 and booming in 2023. The overall competitiveness of Visual Solutions Business Group will steadily improve, and the overall shipment in 2022 will be revised up from the forecast of an annual growth of 50% to an annual growth of 70%.
* Basic EPS was calculated based on the total weighted average outstanding shares of each quarter (391m shares in 2Q22, 1Q22 and 2Q21)
**Basic EPS was calculated based on the total weighted average outstanding share (391m shares in 1H22 and 403m shares in 1H21)
***Basic EPS was calculated based on the outstanding share of the balance sheet date (391m shares in 2022 and 2021)
