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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 2021 TWDUSD
Revenue58,622.05M2,098.75M
Gross Profit21,239.99M760.42M
Operating income9,800.42M350.86M
Income before tax9,991.40M357.70M
Net income8,250.22M295.36M
EBITDA10,897.29M390.13M
Diluted EPS10.510.37
Dividends Per Share7.980.28
Total Assets57,828.23M2,090.15M
Total liabilities19,465.44M703.56M
Total equity37,852.52M1,368.14M
Operating cash flow7,250.73M259.58M
Currency in TWDCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 44,374.75M 48,726.51M 54,144.66M 51,119.40M 58,622.05M
Gross Profit 16,718.77M 18,056.87M 20,279.04M 19,594.09M 21,239.99M
Operating income 6,778.47M 7,459.62M 9,233.50M 9,036.55M 9,800.42M
Income before tax 7,314.89M 7,891.08M 9,185.06M 8,962.32M 9,991.40M
Net income 6,156.51M 6,289.99M 7,351.22M 7,247.95M 8,250.22M
EBITDA 7,593.83M 8,218.81M 10,251.29M 10,004.75M 10,897.29M
Diluted EPS 7.97 8.11 9.43 9.27 10.51
Dividends Per Share 5.99 6.17 7.08 7.09 7.98
Total Assets 40,703.76M 43,939.96M 47,216.07M 50,199.38M 57,828.23M
Total liabilities 12,943.32M 14,396.48M 14,484.61M 15,152.96M 19,465.44M
Total equity 27,581.07M 29,298.03M 32,235.63M 34,410.15M 37,852.52M
Operating cash flow 5,953.00M 6,622.65M 7,916.91M 10,034.66M 7,250.73M
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 1,458.60M 1,615.89M 1,751.53M 1,736.12M 2,098.75M
Gross Profit 549.54M 598.81M 656.00M 665.45M 760.42M
Operating income 222.80M 247.38M 298.69M 306.90M 350.86M
Income before tax 240.44M 261.68M 297.12M 304.38M 357.70M
Net income 202.36M 208.59M 237.80M 246.15M 295.36M
EBITDA 249.61M 272.55M 331.62M 339.78M 390.13M
Diluted EPS 0.26 0.26 0.30 0.31 0.37
Dividends Per Share 0.19 0.20 0.22 0.24 0.28
Total Assets 1,367.80M 1,429.54M 1,575.07M 1,786.58M 2,090.15M
Total liabilities 434.94M 468.37M 483.19M 539.28M 703.56M
Total equity 926.83M 953.18M 1,075.34M 1,224.64M 1,368.14M
Operating cash flow 195.67M 219.62M 256.10M 340.79M 259.58M

Valuation Measures

Dec 2021
PER37.15
ROA15.27%
ROE22.83%
Operating margin16.71%
Profit margin14.07%

Key executives

  • 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
  • GM & President-EIoT: Chia Hao Chang

Shareholders

  • ASUSTek Computer, Inc. (13.2%)
  • Ke Chen Investment Co. Ltd. (11.7%)
  • AIDC Investment Co. Ltd. (11.6%)
  • LIU KO CHEN (3.6%)
  • Advantech Foundation (2.8%)
  • First Sentier Investors (Australia) IM Ltd. (2.6%)
  • First Sentier Investors (Hong Kong) Ltd. (2.5%)
  • Tran Fei Development Co. Ltd. (2.4%)
  • ZHUANG YONG SHUN (2.2%)
  • BlackRock Fund Advisors (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

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  • Advantech Brasil SA
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  • Advantech Investment Co., Ltd.
  • Advansus Corp.
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  • Advantech KR Co., Ltd.
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  • Advantech Europe Holding BV
  • Advantech Europe B.V. Zweigniederlassung Deutschland
  • Kostech Co. Ltd.

Competitors

  • Cisco Systems, Inc.
  • Nokia Oyj
  • International Business Machines Corporation
  • General Electric Company
  • Microsoft Corporation
  • ABB Ltd.
  • Alphabet Inc. Class A
  • Amazon.com, Inc.
  • AT&T Inc.
  • iBASE Technology Inc.
  • Avalue Technology Inc.
  • Silicom Ltd.
  • Beijing Huafeng Test & Control Technology Co. Ltd. Class A
  • Chunghwa Telecom Co., Ltd
  • Comtech Telecommunications Corp.
Last Updated on 16 Aug, 2022

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