Thu, Mar 14, 2019 - Page 12 News List

Advantech forecasts 10 percent revenue growth

By Lisa Wang  /  Staff reporter

Advantech Co (研華), the world’s largest industrial computer maker, yesterday said that revenue would grow at least 10 percent annually this year, benefiting from rapid growth in overseas markets such as Turkey and Israel.

The company has sustained double-digit percentage growth in revenue over the past few years.

Advantech’s revenue last year climbed 10 percent to NT$48.73 billion (US$1.58 billion), from NT$44.38 billion in 2017.

Advantech plans to add more business offices in Turkey and Israel this quarter and next quarter as growth in the Middle East and Africa market outpaced other areas.

Revenue from the region last year soared 60 percent annually, followed by India with annual growth of 56.6 percent, company data showed.

The company has started this year well, reporting an 11.22 percent year-on-year growth in revenue for the first two months totaling NT$7.75 billion.

North America is expected to show the strongest growth this year, Advantech said, adding that Europe will show stable growth, while demand from China is to remain weak, overshadowed by the US-China trade dispute.

China was the biggest contributor to the firm’s revenue last year, accounting for more than one-third, followed by North America at 28 percent, company data showed.

By business group, the industrial Internet of Things business began showing signs of stagnation in the first two months of this year due to greater exposures to the Chinese market, Advantech chief executive officer Eric Chen (陳清熙) told an investors’ conference.

However, the embedded Internet of Things business is to grow further this year, benefiting from rising demand from North America, as well as India and other emerging markets, Chen said.

He expressed optimism about growth in the company’s service Internet of Things business, supported by new product launches.

Gross margin is to be between 37 and 41 percent in the first half of this year, compared with 38.6 percent in the final quarter of last year, dragged by newly acquired Omron Corp, Chen said.

Advantech early last month subscribed to an 80 percent stake of the Japanese company for approximately NT$520 million.

Omron, which was renamed Advantech Technologies in Japan, supplies industrial computing devises used in robots, medical devices and industrial equipment.

Advantech last year posted earnings per share of NT$9.02, the highest in nearly 20 years, thanks to rising revenue and an improved operating margin.

Net profit last year increased 62.3 percent year-on-year and operating profit grew 2.6 percent to NT$6.31 billion, with revenue rising 10 percent to NT$48.78 billion, Advantech said on Friday last week.

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