Taiwan tech companies report large revenue gains as ICT demand continues to surge
Taiwan PC manufacturer ASUSTek (TWSE: 2357) announced a consolidated group revenue for March 2021 of NT$45.9 billion, a year-on-year increase of 74% due to continuing strong demand for laptop computers.
The company reported today, April 9, that group revenue for the first quarter of 2021 was NT$116.2 billion, a year-on-year increase of 64%.
ASUSTek said that the company has a positive outlook on PC market demand and an active growth strategy going forward. In the first quarter of 2021, the annual revenue growth rate of ASUS gaming computers and commercial computers exceeded 100%. The annual revenue growth rate of consumer computers was close to 50%, and the annual revenue growth rate of board cards was nearly 70%.
Panel makers AU Optronics (TWSE: 2409) and Innolux (TWSE: 3481) also reported significant growth in revenue, with AUO reaching a monthly NT$30.72 billion turnover, a year-on-year increase of 49.8%, reaching a 4-year high.
Innolux’s consolidated revenue in March reached NT$30.99 billion, a monthly increase of 22.3% and 57.5% up year-on-year.
AUO and Innolux are both optomistic about future demand for their products as the trend of working and studying at home has actively promoted digital transformation during the pandemic.
Innolux said that the company’s profit ratio is in an upward cycle, and gross profit margin is expected to reach a new high of 30%, up from 20% in the fourth quarter of 2020.
The TAIEX rose at the open but finished down 72.34 points today. AUO and Innolux rose against the trend with gains of 5.35%, and 2.71% respectively.
Memory module manufacturer Team Group (TWSE: 4967) also rose, finishing up 1.33% after reporting a March revenue of NT$609 million, and a first quarter total of NT$1.913 billion, up 23.69% year-on-year, and a record high.
Team Group is optimistic about the second quarter, saying that 5G will drive demand for AI, HPC, IoT and other applications.
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