WAH LEE INDUSTRIAL CORPORATION Wah Lee Industrial Corp. (3010.TT) | ||||||||||||||
2024 1Q Management Report | ||||||||||||||
May 20, 2024 | ||||||||||||||
Company Basic Information | 1Q2024 Consolidated Results Announcement | |||||||||||||
Closing Price (20/05/2024) | NT$133.0 | Wah Lee's 1Q2024 sales | reached NT$17,251 million, a 20.0% YoY | |||||||||||
growth after the inventory digestion among customers and recovering | ||||||||||||||
52 WK High | NT$137.5 | |||||||||||||
macro-economic condition. | WL's sales performance has regained its | |||||||||||||
52 WK Low | NT$79.4 | |||||||||||||
momentum in the beginning of this year. | ||||||||||||||
Book Value/share | NT$79.6 | |||||||||||||
Shares on Issue (M) | 250.7 | Information | Communication Technology 24.19% YoY growth: ICT | |||||||||||
Market Cap (USD M) | 917 | sector's 1Q24 sales reached NT$6,777 million and has posted a strong | ||||||||||||
QFII Holding (%) | 15.4 | |||||||||||||
growth from the low basis from a year ago. To be particularly noticed is | ||||||||||||||
Monthly Avg Daily Turn | NT$100M | |||||||||||||
that the demands of engineering plastics and PCB consumable raw | ||||||||||||||
Key Financial Indicators | materials applied in AI servers/switches have boosted the related sales, | |||||||||||||
including | CPU/GPU/HBM(High Bandwidth Memory) | sockets, | ||||||||||||
2022 | 2023 | 1Q24 | ||||||||||||
connectors, dry films and low Dk/Low Df CCLs. | ||||||||||||||
ROE | 15.0% | 11.9% | 9.4% | |||||||||||
Debt/Asset | 62.0% | 59.0% | 56% | Semiconductor 4.00% | YoY growth: 1Q24 semi sector | sales was | ||||||||
Cash Conversion | NT$4,568 million. Wah Lee provides photoresist, slurry, and advanced | |||||||||||||
Days | 76.0 | 81.8 | 78.0 | |||||||||||
packaging material to foundry customer's 5/3 nm nodes and CoWoS | ||||||||||||||
packaging process. Specialty gases are also provided to semi and other | ||||||||||||||
3010 WL | Price Chart (1 yr) | industries. Wah Lee has started to export specialty gases to the leading | ||||||||||||
foundry's Japan and US expansion plants which will have good growth | ||||||||||||||
potential in the future. |
- FPD 37.77% YoY growth: The FPD 1Q24 sales reached NT$4,688 million and showed a strong recovery from last year because electronic whiteboard sales has returned to its growth track. Large screen LCD TV demands also showed growth and drove the sales of our optical sheets/films such as light guide sheets and polarizer sheets.
Product Mix (1Q24) | Green Energy 36.14% YoY decline: The Chinese EV and EV battery | ||
markets have become very competitive and the price erosions of EVs | |||
and batteries and its upstream raw materials were overwhelmingly | |||
serious. Chinese government phased out their EV subsidy policy also | |||
played a role in the decline of the green energy sector. | |||
1Q24 EPS: NT$1.80, which was a growth of 47.1% YoY | |||
1Q 2024 consolidated sales totaled NT$17,251M. 1Q24 gross profit was | |||
NT$1,321M with gross margin of 7.66% because of the higher growth rate | |||
of FPD sector. 1Q24 operating expense ratio was 4.42%, which was lower | |||
than the 4.61% a year ago as the larger sales number enjoyed the | |||
economies of scale. 1Q24 operating margin was 3.24% and operating | |||
profit was NT$558M. 1Q24 non-operating profit was NT$112M, mainly | |||
Wah Lee Consolidated Entities | contributed from long-term investment companies. Pretax profit totaled | ||
include Wah Lee Taiwan and | |||
NT$671M. 1Q24 after tax and minority profit was NT$433M, which was a | |||
subsidiaries in China, Singapore, | |||
Thailand, Vietnam, and Indonesia. | growth of 49.8% from a year ago. The outstanding common shares of the | ||
IR Contact | company | as of March 31, | 2024 grew to 250,767,117 shares from |
236,239,200 shares as of end of 2023 because of the conversion of | |||
Eric Lin | |||
+886-2-2715-2087 ext.22061 | convertible bonds into stocks. | The convertible bonds were issued about 3 | |
eric.lin@wahlee.com | years ago. The dilution effect was about 6% so far. 1Q24 EPS was | ||
NT$1.80. | A cash dividend of NT$5.2/share was proposed by the Board in | ||
March and will be approved in the AGM on May 28. |
Wah Lee Industrial Corp. (3010.TT)
2024 1Q Management Report
May 20, 2024
2024 Outlook
We are confident the year of 2024 will be a year of recovery. Due to the low basis of monthly sales in 2023, the cumulative Jan.-Apr. 2024 consolidated sales has grown by 22.36% YoY. Wah Lee's geographic expansions were targeted at the fast-growing markets: China's GDP growth target for 2024 is 5.3%; ASEAN countries' overall GDP growth is expected to be 4.9%; India's GDP growth aims for 7%; while US, Japan, Mexico, and Europe markets all expect to have satisfactory growth rates. Wah Lee plans to aggressively expand its market shares in these major markets. From the application's perspectives, smartphones and NB, PC are expected to see sales volume to resume growth momentum in 2024. With the advent of generative AI, the consumer and enterprise AI sectors will both see exponential demand growths within the next few years. According to industry research, AI servers will grow at a CAGR of 45% during the year from 2022-2026. Wah Lee provides a comprehensive portfolio of raw materials for AI servers or other high performance computing or communication device. From high-end engineering plastics that go into the connectors, sockets for GPU/CPU/HBM, and chassis, to the dry films and CCLs required for the production of high-end PCB for AI servers or switches. Furthermore, semiconductor raw materials including photoresist, CMP slurry, bulk chemicals, specialty gases, and advanced packaging materials were comprehensively provided by Wah Lee to foundry and DRAM makers for making all the critical GPU/CPU/Memory chips that will make up for the backbone of an AI server or other AI device. EV market is another high potential growth area. By the year of 2030, EV is expected to grow at a CAGR of 17.3%. Wah Lee has already provided GaN and SiC components and device that are required in the high electricity voltage working environment of EV and charging stations. The related 3rd generation compound semiconductor sales in Wah Lee has grown by 46% YoY in 2023. Wah Lee has well positioned itself to lead in the continuous development of mega technology trends in the modern world. We will periodically update our latest progress in different frontiers of industries to investors and shareholders.
Operating Result (M) | 2021 | 2022 | 2023 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 |
Total Rev | 70,515 | 73,570 | 66,782 | 16,284 | 16,866 | 18,756 | 18,610 | 19,510 | 18,336 | 19,149 | 16,575 | 14,378 | 16,167 | 19,019 | 17,218 | 17,251 |
Gross Profit | 5,983 | 5,567 | 5,526 | 1,438 | 1,496 | 1,572 | 1,476 | 1,558 | 1,428 | 1,438 | 1,143 | 1,094 | 1,510 | 1,548 | 1,374 | 1,321 |
Operating Profit | 3,073 | 2,643 | 2,502 | 726 | 758 | 804 | 784 | 802 | 697 | 704 | 440 | 431 | 749 | 699 | 623 | 558 |
After Tax Profit | 2,843 | 2,485 | 2,114 | 597 | 641 | 842 | 764 | 768 | 657 | 737 | 323 | 289 | 689 | 712 | 423 | 433 |
Shares Ourstanding | 236.02 | 236.02 | 236.24 | 231.40 | 231.40 | 236.02 | 236.02 | 236.02 | 236.02 | 236.02 | 236.02 | 236.02 | 236.02 | 236.02 | 236.24 | 250.70 |
EPS (NTD) | 12.05 | 10.53 | 8.96 | 2.53 | 2.71 | 3.57 | 3.24 | 3.26 | 2.78 | 3.12 | 1.37 | 1.22 | 2.92 | 3.02 | 1.80 | 1.80 |
Operating Result (%) | ||||||||||||||||
GP Margin | 8.5% | 7.6% | 8.3% | 8.8% | 8.9% | 8.4% | 7.9% | 8.0% | 7.8% | 7.5% | 6.9% | 7.6% | 9.3% | 8.1% | 8.0% | 7.7% |
OP Margin | 4.4% | 3.6% | 3.7% | 4.5% | 4.5% | 4.3% | 4.2% | 4.1% | 3.8% | 3.7% | 2.7% | 3.0% | 4.6% | 3.7% | 3.6% | 3.2% |
AT Profit Margin | 4.0% | 3.4% | 3.2% | 3.7% | 3.8% | 4.5% | 4.1% | 3.9% | 3.6% | 3.8% | 1.9% | 2.0% | 4.3% | 3.7% | 2.5% | 2.5% |
Growth % YoY | ||||||||||||||||
Sales YoY | 19.4% | 4.3% | -9.2% | 31.8% | 13.7% | 16.1% | 18.3% | 19.8% | 8.7% | 2.1% | -10.9% | -26.3% | -11.8% | -0.7% | 3.9% | 20.0% |
GP YoY | 24.6% | -7.0% | -0.7% | 43.1% | 25.2% | 22.1% | 12.4% | 8.3% | -4.5% | -8.5% | -22.6% | -29.8% | 5.7% | 7.6% | 20.2% | 20.7% |
OP YoY | 45.8% | -14.0% | -5.3% | 70.8% | 39.1% | 26.4% | 56.5% | 10.5% | -8.0% | -12.4% | -43.9% | -46.3% | 7.5% | -0.7% | 41.6% | 29.5% |
AT Profit YoY | 52.9% | -12.6% | -14.9% | 73.5% | 45.7% | 32.4% | 74.0% | 28.6% | 2.5% | -12.5% | -57.7% | -62.4% | 4.9% | -3.4% | 31.0% | 49.8% |
Safe Harbor Notice
Wah Lee Industrial Corp. (the Company) has made forward-looking statements in this report. The forward-looking statements contain information regarding, among other things, the Company's financial condition, future expansion plans and business strategies. The Company has based these forward-looking statements on its current expectations and projections about future events. Although the Company believes that these expectations and projections are reasonable, such forward-looking statements are inherently subject to risks, uncertainties and assumptions about it.
The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this report might not occur and the actual result could differ materially from those anticipated in these forward-looking statements.
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Wah Lee Industrial Corporation published this content on 20 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2024 07:56:09 UTC.
