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Qisda expects high value-added business to take up 50% by 2022

Rebecca Kuo, Tainan; Adam Hwang, DIGITIMES Asia 0

EMS provider Qisda had 32% of second-quarter 2021 consolidated revenues of NT$55.984 billion (US$2.00 billion) coming from high value-added business groups and aims to hike the revenue proportion to over 50% by the end of 2022, according to company chairman and CEO Peter Chen at the investor conference on Aug 12th.

Qisda's high value-added business groups are medical business including two hospitals in eastern China, medical devices and consumable materials, accounting for 7% of the total revenues; networking/communications and multimedia devices for 13%; smart solutions used in medical care, manufacturing, retail operation, energy management, enterprises-use business administration, and education for 12%.

ICT product lines, mainly LCD displays, projectors, LCD TVs, and digital signage, took up 60% of the total revenues, while others accounted for the remaining 8%.

Qisda expects strong demand for ICT products in the third quarter based on orders received, but is worried that a short supply of components and materials, as well as shortage of containers, may impact shipments, Chen said.

Qisda: Financial report, 2Q21 (NT$b)

Amount

Q/Q

Y/Y

1H21 amount

Y/Y

Consolidated revenues

55.984

9.98%

28.19%

106.888

28.98%

Gross margin

14.75%

up 0.01pp

up 1.17pp

14.74%

up 1.23pp

Operating profit

1.907

11.00%

32.89%

3.625

46.64%

Net profit

3.805

80.16%

300.95%

5.917

401.02%

Net EPS (NT$)

1.93

3.01

Source: Company, compiled by Digitimes, August 2021

Qisda chairman and CEO Peter Chen

Qisda chairman and CEO Peter Chen
Photo: Fu Shih-min, Digitimes, August 2021