WPG (TWSE:3702) Attend Investor Conference Held by KGI SECURITIES Today

WPG (TWSE:3702) Attend Investor Conference Held by KGI SECURITIES Today

2024/03/12

WPG announces 2023 Fourth Quarter consolidated sales of NT$183.09 billion hitting second highest quarterly record for the period, operating income was NT$3.023 billion, +2% QoQ. Under the one-time recognition for disposal of part of the investment profits, net income and EPS hitting record high, achieved NT$3.515 billion and NT$2.09, respectively.

2023 Fourth Quarter key financial indicators Return on Equity (ROE) was 17.1%, Return on Working Capital (ROWC) was 8.1%.

The reasons for the above revenue growth is the downstream customers invest in networking and peripheral equipment and AI ​​server business gradually grows. In addition, North America and Southeast Asia customers have put into production driving the demand.

For 2024 First quarter, based on an exchange rate assumption of NT$31 to the U.S. dollar, WPG forecasts consolidated revenue of NT$160 billion to NT$170 billion, gross margin of 3.7% to 3.9%, operating margin of 1.5 % to 1.7%, net income of NT$0.9 billion to NT$1.21 billion, EPS of NT$0.54 to NT$0.72.

WPG is actively engaged in the field of ESG and has once again rated A by MSCI this year. It has been rated A for two consecutive years after the rating was raised to A in 2023, demonstrating the high recognition from international rating agencies for WPG's commitment to ESG sustainable management.

Driven by 5G commercialization and IoT trends, application solutions in power, Automotive and IoT related field continue to increase, laying solid foundation for future growth in sales. To provide better value-added service and increase market share, 55 application solutions were provided to our customers, including fields in Power (15), Smart Home (11), Automotive (8), Industrial (7), Consumer (4), Computer and related applications (3), Smart City (2), Wearable Devices (2), Networking(2), Medical (1), focusing on 30W Flyback Auxiliary Power Platform, 100W car air conditioning circulation fan, 240w high efficiency GaN power supply, self-driven semi-active bridge rectifier, semiconductor power supply, low power battery IPC, FOC washing machine motor driver, matter thread wireless module, automotive LED driver 4-channel evaluation kit, high-precision combined positioning system P-Box solution, electric tailgate, buck regulators and power management, miniaturized photovoltaic energy management, gaming visual equation, data loggers for the cold chain, OP-Pascia-Ubuntu desktop system…etc.

Table: WPG Holdings Ltd. Consolidated Financial Statements for the year ended December 31, 2023 (In brief)

Units：NT$million

Income Statement (year ended December 31, 2023)			Balance Sheet (December 31, 2023)
Item	Amount		Item	Amount
Operating revenues	671,888		Current Assets	273,029
Cost of Goods Sold	(646,502)		Accounts receivables	130,915
Gross Profit	25,386		Inventories	103,539
Operating Expenses	(14,991)		Other assets	41,341
Operating income	10,395		Total Assets	314,371
Non-op Expenses	(113)		Current Liabilities	205,284
Profit Before Tax	10,282		Current Borrowing	101,879
Tax	(2,084)		Accounts payables	86,012
Minority & Others	(88)		LT Liabilities	20,369
Profit After tax	8,109		Total Liabilities	229,727
EPS - Common Stock (Note1)	4.59		Common Stock	16,791
Note1：Based on weighted average outstanding shares.			Total Equity	84,644

Cash Flow Statement (year ended December 31, 2023)
Item	Amount
Income before Income Tax	10,282
Change in NWC	3,270
Operating cash inflow /(outflow)	16,204
Investment cash inflow /(outflow)	4,027
Change in Financial Debt	(8,740)
Cash Dividends	(6,864)
Financing cash inflow /(outflow)	(15,977)
Cumulative translation adjustments	(407)
Net Cash	3,847
Beginning cash balance	17,950
Ending cash balance	21,796

IR contacts：Cliff Yuan/ Zoe Peng

Tel：[phone] ext.85268/ext.85262

Email address: [e-mail]

Corporate website: www.WPGholdings.com