Taiwan's power supply provider, Chicony Power Technology, anticipates that its 2025 performance will likely surpass that of 2024, supported by multiple growth drivers. Key areas contributing to this momentum include high-wattage notebook power supplies, satellite and communication power supplies, server power supplies, and intelligent platform solutions aligned with net-zero carbon initiatives.
At its November 4 earnings call event, Chicony reported strong third quarter of 2024 results, driven by stronger seasonal demand, new product launches, and growth in smart low-carbon platform operations. Consolidated revenue reached NT$10.363 billion (approx. US$321.25 million), while gross profit margin improved to 21% due to product mix optimization and cost control.
In the third quarter of 2024, revenue from Chicony's three main application segments—PC-related, cloud intelligence, and consumer electronics—grew both quarter over quarter and year over year. This signaled a recovery from the previous market downturn, returning to a growth trajectory.
However, Chicony has taken a cautious outlook for the fourth quarter of 2024, as the traditional off-season approaches. Geopolitical tensions and the US presidential election have led customers to adopt a conservative approach, focusing on short-term and urgent orders. The company expects a slight revenue decline from the previous quarter, yet with continued year-over-year growth. Stable profitability is supported by new power product offerings and strong contributions from its smart low-carbon platform.
Looking ahead to 2025, Chicony foresees a notebook replacement cycle on the horizon. According to the Japan Electronics and Information Technology Industries Association (JEITA), PC shipments in Japan rose for three consecutive months from July to September 2024, with notebooks constituting approximately 90% of these sales. Industry observers see this trend as the start of a broader replacement cycle.
Beyond the maturing applications of AI in 2025, Chicony expects Japan's Giga School project and the launch of new gaming GPUs to be significant drivers of this replacement trend. The company has already begun receiving customer notifications to prepare related products, with production scheduled to begin between the fourth quarter of 2024 and the first quarter of 2025.
The ongoing AI boom is also creating substantial opportunities in the server and high-power power supply markets, which have become highly competitive. Chicony has developed a full product line in the 3-5.5 kW range for AI server power supplies, covering both single power supply units (PSU) and system-level products. Additionally, the company is conducting intensive customer testing for AI servers and high-end communication power supplies, expecting favorable outcomes soon.
In the realm of smart low-carbon solutions tied to net-zero carbon goals, Chicony has achieved significant progress in cold chain, smart factory, and smart building projects in 2024, moving into a positive operational cycle. The company currently has a total project backlog of around NT$5 billion and continues to pursue larger bids, which, if successful, could expand the backlog to NT$8 billion by the end of the year and potentially drive related revenue growth of over 30% in 2025.
From January to September 2024, Chicony's consolidated revenue reached NT$27.306 billion, with a gross profit margin of 20.8%, an operating profit margin of 10.8%, a net profit margin of 9.1%, and an operating income of NT$2.937 billion. Its January-October revenue totaled NT$30.649 billion.
Article translated by Willis Ke
