Electronic Technology
Advantech
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- Apple suppliers face manufacturing woes in China Jan 24, 2018 See more articles on Advantech
Company Background
Advantech is a leading Taiwanese maker of industrial computers, with assets totaling about $10 billion. It provides clients with comprehensive system integration, hardware, software and consumer-focused design services, as well as global logistics support.
Its products range from motherboards to industrial automation devices to applied computers. Advantech employs over 7,000 people and has sales and marketing networks in around 20 countries.
The company has promoted group restructuring to improve efficiency. It merged with Advantech Investment and Management Service in 2009, and with Netstar Technology in 2014. It is seeking to diversify its revenue sources by entering the fields of smart cities and solutions related to the Internet of Things.
K.C. Liu, chairman and CEO, established Advantech in 1983. Before founding the company, he served as an R&D engineer and later as a sales engineer in the instrument department of Hewlett-Packard's Taiwan unit. Asustek Computer, a major Taiwanese PC maker, holds a stake of about 14% in the company.
Business Summary
Advantech Co., Ltd. manufactures and sells embedded computing modules, applied & industrial computers, embedded computing modules. It operates the business through embedded modules & design-in services, ihealthcare, industrial equipment manufacturing, iretail, energy & environment, ilogistic, intelligent transportation system, video solutions, ifactory, industrial & telecom servers, ioT edge intelligence software solutions. It offers computer on modules, digital signage players, edge AI and Internet of Things solutions, embedded PCs & single board computers, embedded software, fanless embedded computers, gaming platform solutions, industrial display systems, industrial flash and memory solutions, industrial and semi-industrial motherboards, and RISC computing platforms. The company also provides automation controllers, building automation systems, certified solutions, embedded automation computers, human machine interfaces, machine automation, panel PCs, power & energy, and remote I/O and wireless sensing modules, as well as WebAccess software and Edge SRP. In addition, it offers data acquisition and communication, modular IPC, and slot SBC and backplanes; industrial computer chassis, computer peripherals, motherboards, and servers and storage; transportation systems, and video platforms; and healthcare infotainment terminals, and intelligent power systems, as well as medical carts, computers, tablets, POS systems, electronic parts, LCD touch panels, USB cables, automation vehicles and related products. Advantech was founded by Tienchung Chen, Chunsheng Ho and Kochen Liu on September 7, 1981 and is headquartered in Taipei, Taiwan.
Financial Highlights
| Dec 2018 | TWD | USD |
| Revenue | 48,726.51M | 1,615.89M |
| Gross Profit | 18,082.94M | 599.67M |
| Operating income | 7,467.39M | 247.63M |
| Income before tax | 7,898.85M | 261.94M |
| Net income | 6,294.65M | 208.74M |
| EBITDA | 8,200.51M | 271.95M |
| Diluted EPS | 8.92 | 0.29 |
| Dividends Per Share | 6.79 | 0.22 |
| Total Assets | 43,937.07M | 1,429.45M |
| Total liabilities | 14,396.48M | 468.37M |
| Total equity | 29,302.70M | 953.33M |
| Operating cash flow | 6,604.35M | 219.01M |
| Currency in TWD | Currency in USD |
Historical Data
| Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | |
| Revenue | 35,731.69M | 38,000.58M | 42,002.19M | 44,374.75M | 48,726.51M |
| Gross Profit | 13,925.85M | 14,816.64M | 16,435.54M | 16,718.77M | 18,082.94M |
| Operating income | 5,508.48M | 5,928.50M | 6,631.49M | 6,778.47M | 7,467.39M |
| Income before tax | 5,954.84M | 6,179.30M | 7,031.80M | 7,314.89M | 7,898.85M |
| Net income | 4,907.78M | 5,104.34M | 5,666.86M | 6,156.51M | 6,294.65M |
| EBITDA | 6,103.40M | 6,594.70M | 7,451.58M | 7,593.83M | 8,200.51M |
| Diluted EPS | 7.06 | 7.31 | 8.09 | 8.77 | 8.92 |
| Dividends Per Share | 5.45 | 5.45 | 5.72 | 6.59 | 6.79 |
| Total Assets | 31,543.82M | 33,979.13M | 38,538.95M | 40,703.76M | 43,937.07M |
| Total liabilities | 9,005.75M | 10,525.35M | 13,152.05M | 12,943.32M | 14,396.48M |
| Total equity | 22,351.06M | 23,307.50M | 25,213.58M | 27,581.07M | 29,302.70M |
| Operating cash flow | 5,107.22M | 5,945.45M | 7,927.99M | 5,953.00M | 6,604.35M |
| Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | |
| Revenue | 1,179.13M | 1,196.71M | 1,302.36M | 1,458.60M | 1,615.89M |
| Gross Profit | 459.55M | 466.60M | 509.61M | 549.54M | 599.67M |
| Operating income | 181.77M | 186.70M | 205.62M | 222.80M | 247.63M |
| Income before tax | 196.50M | 194.59M | 218.03M | 240.44M | 261.94M |
| Net income | 161.95M | 160.74M | 175.71M | 202.36M | 208.74M |
| EBITDA | 201.41M | 207.68M | 231.05M | 249.61M | 271.95M |
| Diluted EPS | 0.23 | 0.23 | 0.25 | 0.28 | 0.29 |
| Dividends Per Share | 0.17 | 0.17 | 0.17 | 0.21 | 0.22 |
| Total Assets | 998.15M | 1,034.46M | 1,195.78M | 1,367.80M | 1,429.45M |
| Total liabilities | 284.97M | 320.43M | 408.08M | 434.94M | 468.37M |
| Total equity | 707.26M | 709.57M | 782.32M | 926.83M | 953.33M |
| Operating cash flow | 168.53M | 187.23M | 245.82M | 195.67M | 219.01M |
Valuation Measures
| Dec 2018 | |
| PER | 23.33 |
| ROA | 14.87% |
| ROE | 22.13% |
| Operating margin | 15.32% |
| Profit margin | 12.91% |
Key executives
- Chairman & Chief Executive Officer: Ko Chen Liu
- President, Head-Finance & General Manager: Ching Hsi Chen
- President, General Manager & President-IIoT: Shu Yan Tsai
- Vice President-Operations: Ming Chin Wu
- Chief Technology Officer: Jui Hsiang Yang
Shareholders
- ASUSTek Computer, Inc. (14.3%)
- Ke Chen Investment Co. Ltd. (11.8%)
- AIDC Investment Co. Ltd. (11.7%)
- LIU KO CHEN (3.6%)
- First State Investments (Hong Kong) Ltd. (3.4%)
- Tran Fei Development Co. Ltd. (2.9%)
- Advantech Foundation (2.9%)
- ZHUANG YONG SHUN (2.2%)
- The Vanguard Group, Inc. (1.9%)
- BlackRock Fund Advisors (1.7%)
Contact Details
- Website:http://www.advantech.tw
- Address: Section 20, Lane 26, No. 1 Rueiguang Road, Taipei, 114 91, Taiwan
- Phone: +886.2.2792.7818
Related Companies
- Advantech Corp. Investment Co. Ltd.
- B+B Smartworx Ltd.
- Advantech-GPEG
- Advantech Automation Corp. (California)
- LNC Technology Co., Ltd.
- AdvanPOS Technology Co. Ltd.
- Shanghai Advantech Intelligent Services Co., Ltd.
- Advantech Automation Corp. (HK) Ltd.
- Advantech Poland Sp zoo
- Advantech Co. Singapore Pte Ltd.
- Advantech Brasil SA
- HK Advantech Technology Co. Ltd.
- Advantech Japan Co., Ltd.
- Advantech Intelligent Services Co., Ltd.
- Advantech Technology (China) Co., Ltd.
- Advantech Investment Co., Ltd.
- Advansus Corp.
- BCM Embedded Computer, Inc.
- Advantech-Innocore Ltd.
- Advantech Europe Holding BV
- Advantech Europe BV
- Advantech Europe B.V. Zweigniederlassung Deutschland
- AdvanTech Corp.
- OMRON Nohgata Corp.
- Advantech Co. Malaysia Sdn. Bhd.
- B+B SmartWorx, Inc.
- Advantech Control (Malaysia) Sdn. Bhd.
- Advantech Automation Corp.
- Adventech Europe Holding BV
- Yen Hsin Investment Co. Ltd.
Competitors
- Nexcom International Co., Ltd.
- Axiomtek Co., Ltd.
- Avalue Technology Inc.
- SMART Global Holdings, Inc.
- Silicom Ltd.
- Computer Direct Group Ltd
- Matrix IT Ltd.
- Hilan Ltd.
- Chunghwa Telecom Co., Ltd
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Last Updated on 6 Dec, 2019