Lite-On's AI power supply product line adds momentum, with steady growth expected throughout the year

Lite-On is benefiting from its core business operations returning to the growth track. This year's main growth drivers include the shipment of high-end products such as cloud computing and optoelectronic semiconductors. Although the first quarter performance will decline compared with the fourth quarter of last year, it will be better than the performance of the same period last year. In addition to the annual contribution of AI server power supply doubling, revenue from high-end optocoupler applications such as machine vision, industry, and renewable energy will also increase quarter by quarter.

Lite-On's revenue in the fourth quarter of last year was 38.299 billion yuan, a quarterly increase of 4.14% and an annual increase of 3.76%, of which the cloud and Internet of Things departments accounted for 41%, the information and consumer electronics department 41%, and the optoelectronics department 18%; the consolidated gross profit margin was 21.3%, a quarterly decrease of 1.1 percentage points, and an annual increase of 3.76%. A decrease of 0.7 percentage points; operating profit margin was 9.1%, a quarterly decrease of 1.6 percentage points and an annual decrease of 0.2 percentage points; after-tax net profit was 3.049 billion yuan, a quarterly decrease of 10.05% and an annual decrease of 11.87%; earnings per share was 1.33 yuan, a quarterly decrease of 10.13% and an annual decrease of 11.92%.

Lite-On's full-year revenue in 2024 is 137.134 billion yuan, an annual decrease of 7.54%, of which the information and consumer electronics department 4 3%, the cloud and Internet of Things department accounted for 37%, and the optoelectronics department accounted for 20%; the consolidated gross profit margin was 21.6%, an annual decrease of 0.4 percentage points; the operating profit rate was 9.4%, an annual decrease of 0.4 percentage points; after-tax net profit was 11.942 billion yuan, an annual decrease of 18.04%; earnings per share was 5.21 yuan, an annual decrease of 18.08%.

Full-year AI revenue contribution doubled, liquid cooling will be fermented next year

Qiu Senbin, general manager of Lite-On, said at the conference today that as Nvidia's GB200 server targets to increase volume this year, the company's shipment momentum is expected to increase quarter by quarter. Last year, AI power supply revenue accounted for about 7% to 8% of the overall revenue, and this year it is expected to grow to 14% to 15%. Although the contribution of liquid cooling and cabinet systems is less than 1%, new businesses that are in the climbing stage will continue to become an important growth driver in the next two to three years.

In addition, Lite-On is also deeply involved in 5G private network communication small base stations, working with index customers to combine advanced Al image recognition and network communication technologies to expand innovative application fields. It has also cooperated with 8 international index partners, including Japanese telecom operators, to complete the deployment of diversified private network applications. In terms of automotive electronics, Lite-On has locked in high-value system products, integrating core capabilities in optics, imaging technology and energy management to provide integrated solutions for indoor and outdoor LED lighting, sensing and self-driving system image recognition, as well as electric vehicle charging station energy management systems.

Kaohsiung Phase II will be put into operation in Q2 next year, Vietnam’s annual output value will be 24 billion yuan

Qiu Senbin said that of the group's production capacity in 2024, mainland China will account for 80%, and other regions will account for 20%. Its Dallas factory in the United States will continue to expand production capacity and also provide products related to electric vehicle charging piles; Kaohsiung's existing production capacity will provide advanced power supplies such as 72kW. The local second-phase factory will be officially opened in July or August next year.

In Vietnam, Lite-On's existing Vietnam factory has an annual output value of up to 15 billion yuan. Under the medium- and long-term expansion plan, a new factory covering an area of 30 hectares will be built in an industrial park in Quang Ninh Province, North Vietnam. The goal is to increase the local total output value to 24 billion yuan. The products include power converters, computer keyboards and mice, computer server power supplies, routers, electric vehicle charging equipment, etc. The Thailand factory focuses on the field of optoelectronic semiconductors.