Quanta Computer Inc (廣達電腦), which assembles MacBook computers and the Apple Watch, yesterday posted a 5.22 percent annual increase in net profit for last year, driven by server business growth.
Net profit last year rose to NT$15.12 billion (US$490.02 million), compared with NT$14.37 billion in 2017, and earnings per share climbed from NT$3.73 to NT$3.92, the company said in a financial statement submitted to the Taiwan Stock Exchange.
In a separate filing with the regulator, the Taoyuan-based company said that its board of directors has approved the distribution of a cash dividend of NT$3.55 per common share, representing a payout ratio of about 90.56 percent.
Last year’s net profit exceeded the NT$14.85 billion, or earnings per share of NT$3.85, estimated by Yuanta Securities Investment Consulting Co (元大投顧).
As the industry has entered the slow season, Yuanta expected Quanta’s revenue to drop 25.44 percent quarter-on-quarter to NT$236.12 billion for the quarter ending on Sunday.
Quanta could see revenue grow 6.23 percent this year to NT$1.09 trillion, compared with NT$1.027 trillion last year, driven by server demand from US clients, the investment consultancy said.
This year, Quanta’s server business should enjoy an annual increase in revenue of between 10 and 15 percent, less than Quanta’s guidance of between 15 and 20 percent, Yuanta said.
Consolidated revenue last year rose 0.58 percent year-on-year, Quanta said.
Quanta’s laptop computer business would continue to be under pressure to improve its gross margin, Yuanta said, adding that there is concern about whether Quanta’s clients would cover increased overhead expenses stemming from moving production outside China.
Quanta plans to move production lines in China to Taiwan and other areas to avoid high US tariffs on Chinese imports.
Quanta in November last year said that it would invest NT$4.82 billion to acquire two plots of land in Taoyuan to build factories and a warehouse.
Taishin Securities Investment Advisory Co (台新投顧) said that Quanta would use the new factories to make better-priced high-end products, including servers.
The new manufacturing site would start operations in the second quarter, it said.
Taishin expects Quanta to enjoy a double-digit percent annual growth in revenue from servers and cloud technology-based devices this year.
The growth momentum would help grow Quanta’s revenue by 1.2 percent this year to NT$1.04 trillion, with half of that amount coming from laptops, Taishin said.
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