EMS provider Lite-On Technology has landed orders for components and devices used in power charging piles for electric vehicles (EVs) from clients in North America mainly, and will undertake small-volume trial production in the third quarter of 2021 and start volume production in the following quarter, according to company president Anson Chiu.
Components and devices used in EV-use power charging piles will become a new source of business growth for Lite-On, Chiu said at a July 29 investors conference.
Demand for power supplies used in data centers, high-end LED devices and miniLED backlight units (BLU) in the third quarter is expected to be strong, and shipments for orders for high-end LED devices and miniLED BLUs are scheduled until the fourth quarter of 2021, Chiu said. Lite-On is expanding production capacity for LED devices by 50%.
Demand for automotive electronic components is strong, but global IC shortages will impact shipments in the third quarter of 2021, Chiu noted. Lite-on kept the negative influence of the shortage in the second quarter to within 5% and aims to maintain the same level of control in the third and fourth quarters, Chiu indicated, adding the shortages are expected to continue until 2022.
LED devices, LED lighting and automotive electronic components accounted for 20.66% of second-quarter 2021 consolidated revenues of NT$40.677 billion (US$1.45 billion); components and devices for cloud computing, networking/communication equipment, AI, IoT and smart devices, 27.18%; and components and devices for IT products and consumer electronics, 52.15%.
Lite-On will set up a software R&D center, including a team for developing car-use software applications.
Lite-On will buy back 40 million shares of its stock, taking up 1.70% of the paid-in capital, at a price interval of NT$41.23-89.55 during July 30-September 29, 2021.
Lite-On Tech: Financial results, 2Q21 (NT$b) | |||||
2Q21 | Q/Q | Y/Y | 1H21 | Y/Y | |
Consolidated revenues | 40.677 | 7.85% | (2.68%) | 78.395 | 5.41% |
Gross margin | 19.65% | 1.84pp | 0.24pp | 18.77% | 1.52pp |
Operating profit | 3.801 | 80.40% | 4.25% | 5.908 | 34.30% |
Net profit | 4.034 | (5.37%) | 17.10% | 8.298 | 65.40% |
Net EPS (NT$) | 1.74 | 3.57 | |||
Source: Company, compiled by Digitimes, July 2021
Lite-On Technology president Anson Chiu
Photo: Michael Lee, Digitimes, July 2021
Article translated by Adam Hwang
