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Eson-KY is expected to operate next year, 2 large-scale Tuwei


[Times reporter Zhang Hanqi reported from Taipei] The automotive and cloud Netcom product shipments continue to grow. Eson-KY (5243) is optimistic about the operation next year. Eson-KY Chairman Cai Jiaxiang said that the two major businesses of automobile and cloud Netcom will grow next year, and The company has successfully entered the low-orbit supply chain, and next year's revenue and profit will be better than this year.

Eson-KY held a lecture this afternoon at the invitation of a brokerage firm. Eson-KY’s operation this year was affected by the outbreak of the epidemic in Malaysia and other Southeast Asia since the end of the second quarter and the surge in transportation and raw material prices. The combined gross profit margin in the third quarter of this year Decline to 11.54%, a quarterly decrease of 4.7 percentage points, a single-quarter after-tax profit of 117 million yuan, a quarterly increase of 7%, and a single-quarter earnings per share of 0.7 yuan; cumulative consolidated revenue for the first three quarters was 8.74 billion yuan, an annual growth of 28.79 %, operating gross profit was 1.285 billion yuan, an annual increase of 7.64%, combined gross profit margin was 14.7%, an annual decrease of 2.89 percentage points, after-tax surplus was 363 million yuan, an annual growth of 6.5%, and earnings per share was 2.16 yuan.

Lin Youqing, Chief Financial Officer of Eson-KY, said that the gross profit margin this year was not as good as expected, mainly due to the increase in the price of raw materials from the second quarter to the third quarter, and the growth of consumer products this year, and high-margin products were not immediately pulled up. The company is actively increasing prices with customers, and customer feedback is more positive. If the price increase of raw materials can be immediately reflected to customers and the impact of raw materials can be reduced, the future gross profit margin can be viewed with optimism.

Looking forward to next year, Lin Youqing said that the company is actively entering into growth industries such as automotive and cloud Netcom. According to Qinye Zhongxin, electric vehicles are expected to have a compound annual growth rate (CAGR) of 29% in the next 10 years. 2.5 million units will grow to 11.2 million units in 2025 and reach 31.1 million units by 2030. Electric vehicles will account for 32% of new car sales. The benefits of the upward expansion are gradually showing, and it is expected that automotive products will continue to grow next year.

In the server part, Netcom's cloud industry is a mature industry. The epidemic has promoted the demand for cloud computing (audio-visual streaming platform, social platform) and remote work (video software), and the emergence of emerging application scenarios has made the server product line more diversified. With the popularization of concepts such as micro data centers and intelligent computing centers, coupled with 5G applications, edge computing and AI servers, the estimated annual growth rate of global server shipments in 2022 is estimated to be 6.4%. Due to the company’s global layout advantages, New customers are expected to make greater contributions next year, and we will continue to win new customers in the future.

In terms of consumer products, Lin Youqing said that the company's strategy is to continue to adjust product structure and adjust inventory before consumer products enter next-generation products. It is expected that consumer products will decline next year.

In order to meet customer needs, Eson-KY continues to expand production. The expansion of the original Mexican factory area in 2020 has been completed and started to operate. In 2021, the capital expenditure will be about 10.2 million US dollars. An additional 34,000 square meters will be added. It is expected in the first quarter of 2023. Putting into production; another new factory in north-central Mexico will have a capital expenditure of approximately US$15 million in 2022. It is expected to be put into production from the fourth quarter of 2022 to the first quarter of 2023. It is planned to produce automobiles and consumer products.

In the Malaysian plant and Vietnam plant, the capital expenditure of the second plant in Malaysia is 6 million U.S. dollars. After the expansion, the plant area will increase by 8454 square meters. It is expected to be completed and put into production in June 2022; the Vietnam plant has been completed in 2021 and mass production will begin in the third quarter of 2021. , Both of the two factories are mainly engaged in the production of consumer products and network cloud products.

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