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Electronic Technology

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 TWDUSD
Revenue48,726.51M1,615.89M
Gross Profit18,082.94M599.67M
Operating income7,467.39M247.63M
Income before tax7,898.85M261.94M
Net income6,294.65M208.74M
EBITDA8,200.51M271.95M
Diluted EPS8.920.29
Dividends Per Share6.790.22
Total Assets43,937.07M1,429.45M
Total liabilities14,396.48M468.37M
Total equity29,302.70M953.33M
Operating cash flow6,604.35M219.01M
Currency in TWDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 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 2014Dec 2015Dec 2016Dec 2017Dec 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
PER23.33
ROA14.87%
ROE22.13%
Operating margin15.32%
Profit margin12.91%

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
Last Updated on 6 Dec, 2019

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