Qisda is expanding its healthcare business as Taiwan's pharmacy sector shifts toward a chain-store model. Chairman Peter Chen plans to accelerate mergers and acquisitions (M&A), aiming to position pharmacies as key competitors to retail chains.
Qisda's 2024 revenue reached NT$201.7 billion (US$6.11 billion), with healthcare contributing NT$26.3 billion (13%). The company expanded its medical retail presence by raising its Norbel Baby Co. stake to 40.66% and gaining CSRC approval for BenQ Hospital's (BenQ Medical Center) overseas listing in January 2025.
Pharmacy consolidation accelerates
Qisda projects double-digit healthcare growth in 2025, fueled by hospitals, medical devices, and pharmacies. Chen sees Taiwan's fragmented pharmacy market—currently over 10,000 stores—inevitably consolidating into a chain-store model akin to 7-Eleven and FamilyMart.
Qisda operates over 100 pharmacy outlets, while key competitors run 300–400. By streamlining supply chains, procurement, and logistics, the company aims to improve efficiency. Pharmacies are evolving into health hubs, selling medication, supplements, and assistive products. Qisda is aggressively pursuing acquisitions to outpace rivals.
Qisda prioritizes retail expansion under its "channel-first" strategy. As pharmacies consolidate into larger networks, they are positioned to compete directly with convenience store chains.
Credit: BenQ Medical Center
Beyond healthcare: AIoT, displays, and networking
Qisda is also expanding in AIoT. Despite 2024 market turbulence, AIoT revenue hit NT$31.2 billion, with a projected 2025 rebound post-restructuring. The display segment, Qisda's top revenue driver at NT$110.5 billion, is set for recovery as demand strengthens.
Qisda's networking segment posted NT$21.4 billion in 2024 revenue. While inventory clearance lagged, demand is rebounding, and the company expects growth in early 2025. Chen stated the business has moved past its lowest point.
2025 outlook remains positive
Chen is optimistic about 2025, expecting revenue and profit growth across all segments, with quarter-to-quarter improvements.
Challenges persist. The first quarter is a seasonal lull for tech, and US tariffs and monetary policies could affect supply chains and recovery. Still, Qisda remains cautiously optimistic, focusing on supply chain resilience.
Qisda forecasts stable demand for displays, industrial PCs (IPC), and cybersecurity networking solutions in early 2025. Networking inventory levels are stabilizing, while enterprise IT orders are improving despite weak consumer demand, setting up year-over-year growth.
BenQ Hospital's China listing remains on track as Qisda expands its medical retail footprint. The AIoT business is shifting toward high-margin areas like computing, software, automation, and smart solutions while improving overseas performance. Networking will gain from new markets and factory consolidations.
Article translated by Levi Li and edited by Jerry Chen
