Source: DigiTimes news
MLCC and chip resistor specialist Yageo saw its net profits climb to a record high of NT$33.84 billion (US$1.09 billion) in 2018, with EPS coming to NT$80.30.
Yageo posts record profits for 2018
Yageo disclosed gross margin surged 30.8pp from a year earlier to 63.3% in 2018, when operating margin grew 24.3pp on year to 47.8%. The company’s consolidated revenues jumped 139.2% from a year ago to NT$77.16 billion in 2018.
Yageo indicated revenues, margins and net profits for 2018 all set new records. Nevertheless, the results started showing weakness in the fourth quarter, due to a slowdown in demand from the Greater China region as a result of the US-China trade disputes, as well as seasonal factors.
Yageo’s consolidated revenues fell 47.1% sequentially to NT$16.22 billion in the fourth quarter of 2018. Gross margin and operating margin slid 10.2pp and 27.2pp, respectively, on quarter to 59.1% and 28.1%. The company generated net profits of NT$4.28 billion in the fourth quarter, with EPS arriving at NT$10.11.
Yageo warned previously of ongoing inventory correction at its China-based distributor clients and weak demand from China amid the US-China trade tensions. The company saw its February revenues decline 35.1% sequentially and 3.6% on year to NT$3.1 billion. Revenues for the first two months of 2019 totaled NT$7.88 billion, still up 16.6% from a year earlier.
Yageo-affiliated capacitor companies set to merge
Two Yageo-affiliated capacitor specialists are set to merge for business synergies, according to market sources.
Teapo Electronic, which already owns a 59.84% stake in Kaimei Electronic, is expected to acquire the remaining 40.16% of Kaimei, the sources indicated.
Both Kaimei and Teapo have entered a trading halt on March 13 pending the release of material information.
Kaimei has as high as 70% of revenues generated from aluminum capacitor sales, while Teapo specializes in solid capacitors. Both capacitor suppliers are under the Yageo group.
Teapo reported consolidated revenues grew 1.6% from a year earlier to NT$2.97 billion (US$96.1 million) in 2018. The company generated earnings per share of NT$18.81 in the first three quarters of the year.
Kaimei’s consolidated sales for 2018 came to NT$1.36 billion, rising 5.3% on year. The company’s EPS arrived at NT$21.78 in the first three quarters of 2018.
