Industrial computer maker Advantech Co (研華) yesterday announced it is buying a 70.2 percent stake in AdvanPOS Technology Co (鈞發) as part of its efforts to tap into the point-of-sale (POS) device market.
In a filing to the Taiwan Stock Exchange, Advantech said it plans to buy 12.78 million shares of AdvanPOS at NT$25 per share, for a total purchase price of NT$319.46 million (US$10.64 million).
It said the investment would help it gain new sales and service channels in more than 40 countries around the world, while strengthening its POS development capability.
Advantech mainly supplies embedded computing, industrial automation and applied computing products in the industrial PC field. It also offers design services.
Its major competitors include Germany-based Kontron AG and US-based Radiant Systems Inc.
The Taipei-based firm has extended its reach into smart-life and factory automation applications in recent years to diversify its business portfolio and try to maintain stable margins.
The company posted a net profit of NT$1.13 billion, or earnings per share of NT$1.98, for the second quarter of this year, up 15.02 percent year-on-year and 29.87 percent quarter-on-quarter, a financial statement from the firm showed.
The results beat Daiwa-Cathay Capital Markets Co analyst Christine Wang’s (王琦清) forecast of EPS of NT$1.84 and Bloomberg’s median analyst forecast of NT$1.75, because of Advantech’s higher-than-expected revenue of NT$7.84 billion in the second quarter and gross margin of 40.91 percent.
Net profit totaled NT$1.99 billion in the first half this year, or an EPS of NT$3.5, rising 13 percent from the same period last year.
In the first seven months this year, cumulative revenue totaled NT$17.04 billion, up 8.16 percent from the same period of last year, the company said.
Advantech has set an annual revenue target of NT$30.55 billion for this year, compared with last year’s revenue of NT$27.55 billion.