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Electronic Technology

Advantech Co., Ltd.

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 2019 TWDUSD
Revenue54,144.66M1,751.53M
Gross Profit20,279.04M656.00M
Operating income9,233.50M298.69M
Income before tax9,185.06M297.12M
Net income7,351.22M237.80M
EBITDA10,251.29M331.62M
Diluted EPS9.430.30
Dividends Per Share7.080.22
Total Assets47,216.07M1,575.07M
Total liabilities14,484.61M483.19M
Total equity32,235.63M1,075.34M
Operating cash flow7,916.91M256.10M
Currency in TWDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 38,000.58M 42,002.19M 44,374.75M 48,726.51M 54,144.66M
Gross Profit 14,816.64M 16,435.54M 16,718.77M 18,056.87M 20,279.04M
Operating income 5,928.50M 6,631.49M 6,778.47M 7,459.62M 9,233.50M
Income before tax 6,179.30M 7,031.80M 7,314.89M 7,891.08M 9,185.06M
Net income 5,104.34M 5,666.86M 6,156.51M 6,289.99M 7,351.22M
EBITDA 6,594.70M 7,451.58M 7,593.83M 8,218.81M 10,251.29M
Diluted EPS 6.65 7.35 7.97 8.11 9.43
Dividends Per Share 4.95 5.20 5.99 6.17 7.08
Total Assets 33,979.13M 38,538.95M 40,703.76M 43,939.96M 47,216.07M
Total liabilities 10,525.35M 13,152.05M 12,943.32M 14,396.48M 14,484.61M
Total equity 23,307.50M 25,213.58M 27,581.07M 29,298.03M 32,235.63M
Operating cash flow 5,945.45M 7,927.99M 5,953.00M 6,622.65M 7,916.91M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 1,196.71M 1,302.36M 1,458.60M 1,615.89M 1,751.53M
Gross Profit 466.60M 509.61M 549.54M 598.81M 656.00M
Operating income 186.70M 205.62M 222.80M 247.38M 298.69M
Income before tax 194.59M 218.03M 240.44M 261.68M 297.12M
Net income 160.74M 175.71M 202.36M 208.59M 237.80M
EBITDA 207.68M 231.05M 249.61M 272.55M 331.62M
Diluted EPS 0.20 0.22 0.26 0.26 0.30
Dividends Per Share 0.15 0.16 0.19 0.20 0.22
Total Assets 1,034.46M 1,195.78M 1,367.80M 1,429.54M 1,575.07M
Total liabilities 320.43M 408.08M 434.94M 468.37M 483.19M
Total equity 709.57M 782.32M 926.83M 953.18M 1,075.34M
Operating cash flow 187.23M 245.82M 195.67M 219.62M 256.10M

Valuation Measures

Dec 2019
PER28.72
ROA16.12%
ROE23.89%
Operating margin17.05%
Profit margin13.57%

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%)
  • First State Investments (Hong Kong) Ltd. (3.7%)
  • LIU KO CHEN (3.6%)
  • First Sentier Investors (Australia) IM Ltd. (2.9%)
  • Tran Fei Development Co. Ltd. (2.9%)
  • Advantech Foundation (2.8%)
  • ZHUANG YONG SHUN (2.2%)
  • The Vanguard Group, Inc. (1.8%)

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
  • Kostech Co. Ltd.
  • 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

Competitors

  • Nexcom International Co., Ltd.
  • Avalue Technology Inc.
  • IEI Integration Corporation
  • Siemens AG
  • S&T AG
  • Delta Electronics, Inc.
  • DFI Inc.
  • Posiflex Technologies, Inc.
  • General Electric Company
  • ABB Ltd.
  • Axiomtek Co., Ltd.
  • SMART Global Holdings, Inc.
  • Silicom Ltd.
  • Beijing Huafeng Test & Control Technology Co. Ltd. Class A
  • Hilan Ltd.
  • Chunghwa Telecom Co., Ltd
Last Updated on 13 Aug, 2020

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