Ennoconn Corp (樺漢科技) on Friday posted a record profit for the first quarter of this year and said it maintains a positive outlook for the second quarter, despite negative factors stemming from the Russia-Ukraine war and COVID-19 lockdowns in China.
The industrial computer manufacturing arm of Hon Hai Precision Industry Co (鴻海精密) is committed to integrating various products, markets and services, as well as diversifying its sales, supply chains and production bases, even though it is facing headwinds ahead, Ennoconn said in an e-mailed statement.
Net profit for the January-to-March quarter jumped 59.6 percent year-on-year to NT$313.81 million (US$10.53 million), its best first-quarter figure ever, Ennoconn said, as a better product portfolio and operating expense controls helped improve profit margins.
Photo: CNA
On a quarterly basis, net profit declined 33.6 percent.
Gross margin was 21.03 percent last quarter, down 2.52 percentage points from the previous year, but operating margin increased by 0.03 percentage points to 3 percent, the company said.
On a quarterly basis, gross margin and operating margin increased 2.65 percentage points and 0.44 percentage points respectively.
Earnings per share came in at NT$2.97 last quarter, compared with NT$2.06 a year earlier and NT$4.94 the previous quarter, company data showed.
As the company’s three major business units — design and manufacturing, systems integration and brand business — maintained steady growth momentum, revenue rose 20.2 percent year-on-year, but fell 19.5 quarter-on-quarter to NT$24.27 billion last quarter.
The design and manufacturing segment contributed 17 percent to the company’s revenue last quarter, while systems integration and brand business segments accounted for 43 percent and 40 percent of sales respectively, the company said.
Ennoconn provides hardware solutions for point-of-sale, banking automation, kiosk, lottery and industrial automation systems. The company is scheduled to hold an online conference call today. It is expected to elaborate on its financial results for last quarter, current orders and supply of components, and shed light on its business prospects and planned investments.
Analysts have said that demand for industrial computers would remain robust this year, with major industrial PC vendors in Europe increasing orders, despite persistent component shortages.
The company’s system integration business would continue to benefit from a faster digital transformation and emerging artificial intelligence, high-performance computing, 5G and auto applications, while its brand business sales would be driven by demand from railway traffic control system and EU infrastructure projects, as well as increasing orders for advanced driver assistance systems, analysts said.
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