Tue, Feb 06, 2018 - Page 11 News List

Holtek 2017 net profit jumps 18%

By Chen Cheng-hui  /  Staff reporter

Holtek Semiconductor Inc (盛群半導體) posted a net income of NT$926.19 million (US$31.6 million) for last year, up 18.1 percent from NT$784.22 million in 2016 and the highest since 2006.

Earnings per share (EPS) last year were NT$4.1, compared with NT$3.47 in the previous year, the company said in a filing to the Taiwan Stock Exchange last week.

Gross margin was 46.85 percent and operating margin was 20.44 percent, compared with 48.48 percent and 20.05 percent respectively the previous year.

Consolidated revenue was NT$4.61 billion, up 10.99 percent from the previous year and the highest since 2000.

Holtek is the nation’s largest designer of microcontroller units (MCU) for consumer electronics, focusing on flash-type, touch-type and 32-bit products. It also produces semiconductors for home appliances, industrial control, healthcare, PC peripherals and security systems.

Holtek told an investors’ conference in Taipei that its core business performed well last year, contributing 74 percent to overall revenue, aided by a 21 percent growth in MCU shipments and 15 percent growth in sales.

Its MCU business was “mainly boosted by client order transfers, as tier-one makers withdrew from the low and mid-end markets and turned to auto and high-end applications,” Yuanta Securities Investment Consulting Co (元大投顧) said in a note on Tuesday.

In addition, “Holtek’s strategies for product applications, such as using flash-type MCUs to replace OTP [one-time programmable] MCUs, shifting from button MCUs to touch MCUs, and launching ARM Cortex-M0+ based products, have borne fruit,” Yuanta said.

Holtek said it also saw a marked rise in wireless charger IC shipments last year. Its business also benefited from foreign-exchange gains of NT$300,000, compared with forex losses of more than NT$20 million in 2016.

Holtek said its order visibility appears to be clear through the end of next month, but fewer working days because of the Lunar New Year holiday could affect its business this quarter, with revenue likely falling 10 to 15 percent from last quarter’s NT$1.25 billion and EPS falling to NT$0.92 from NT$1.22.

The company said it is looking to see substantial increases in shipments of wireless charger ICs, 32-bit MCUs and health monitoring devices for this year, but Yuanta forecasts that contribution from these products would remain low, despite their strong upside potential.

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