Coretronic projects a 10–20% rise in quarterly shipments for its two major product lines in the upcoming peak Q3, compared to Q2. However, due to the sluggish economy, both optical and energy-saving product shipments are expected to decline by about 10 percent.
Coretronic highlighted that the expected increase in the imaging products sector is attributed to the recovery of the B2B educational and commercial market. The B2C household demand is also showing growth, combined with a surge in professional audio/visual (ProAV) and high-end engineering equipment demands. Additionally, new products will enter mass production in the same period. Although the company anticipates growth in their optical products in H2 this year, the yearly total shipments for 2023 still might decline by no more than 10% from 2022, mainly due to economic downturns including inflation.
Energy-saving products from Coretronic also display promising projections for Q3, with a 10–20% growth from Q2 estimated. Despite unfavorable monetary policies and inflation, Q3 is the peak sales season. Coretronic anticipates a single-digit QOQ growth in LCD monitor shipments, consistent shipment volumes for notebooks as in Q2, and a robust 70–80% quarterly growth in TV products, contingent upon quantity of open cell delivered by LCD factories. However, 2023's overall shipments for energy-saving products are projected to decline approximately 10% compared to 2022.
Coretronic's ventures into OLED display are gaining momentum. Beyond its notebook applications, Coretronic has been expanding since Q2 this year its shipments of OLED tablets, with consistent upward trends in volumes. Furthermore, the company's second factory in Vietnam is set to complete construction by the end of September. Large-scale manufacturing will begin after client validation. Coretronic also stressed that this is an increase in total orders and is not a transferal of orders to China.
The company's financial performance reveals mixed trends for the 23H1. Coretronic reported a consolidated revenue of NTD$9.63 billion (USD$30.51 million) for Q2, marking a 1% QoQ growth but a 23% YoY decline. This is largely influenced by inflation and the recovery of consumer products. Benefiting from favorable exchange rates, the consolidated gross margin for Q2 stood at 20.9%, up 4.2% from Q1 and 0.6% YoY increase. The net profit attributable to the parent company's shareholders for Q2 amounted to NTD$412 million.
For the first half of the year, the consolidated revenue was NTD$19.204 billion, a YoY 25% drop from 2022, chiefly due to various global economic adversities. Yet, the gross profit margin for the first half was at 18.8%, a 1.1% increase from 2022, largely benefiting from product portfolio optimization. The net profit attributable to parent company shareholders during this period was NTD$665 million.
Article translated by Julie Chang
