Pegatron Corp.

In the news

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Company Background

Pegatron is the second-largest contract electronics manufacturer in Taiwan, after Hon Hai Precision Industry, better known as Foxconn Technology Group. Pegatron's total assets exceed $14 billion. The company has a diverse product lineup, including motherboards, desktop PCs, notebooks, wireless systems, game consoles and TVs. By category, around 60% of sales come from smartphones and other communications devices.

The company is a major assembler for Apple. The U.S. technology giant reportedly allotted a small portion of its iPhone 4 orders to Pegatron, which led to the Taiwanese company landing a much bigger contract for the iPhone 5c in 2013. To make room for further growth, Pegatron has been building up its production capacity. It plans to spend up to $300 million in 2015 to expand its plants, including one in Suzhou, in China's Jiangsu Province.

Founded in 2008, Pegatron was once the production arm of Taiwan's Asustek Computer. Before joining Pegatron, Chairman T.H. Tung was one of the co-founders of Asus and served as that company's vice chairman. Asus remains the largest shareholder in Pegatron, with a roughly 17% stake.

Business Summary

Pegatron Corp. engages in the research, development, design, manufacturing, and maintenance services of information, communications, and consumer electronics. Its products include notebooks, desktop personal computers, motherboards, video graphics arrays, cable modems, set-top boxes, smartphones, game consoles, tablet personal computers, automotive electronics, and smart home devices. The company was founded on June 27, 2007 and is headquartered in Taipei, Taiwan.

Financial Highlights

Dec 2019	TWD	USD
Revenue	1,366.28B	44,198.23M
Gross Profit	43,141.80M	1,395.60M
Operating income	16,948.44M	548.26M
Income before tax	25,407.62M	821.91M
Net income	19,317.74M	624.91M
EBITDA	35,512.79M	1,148.80M
Diluted EPS	7.32	0.23
Dividends Per Share	4.50	0.14
Total Assets	570,519.79M	19,031.91M
Total liabilities	377,274.28M	12,585.45M
Total equity	157,665.06M	5,259.53M
Operating cash flow	77,256.81M	2,499.19M
	Currency in TWD	Currency in USD

Historical Data

TWD | USD

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	1,213.71B	1,157.71B	1,193.80B	1,340.00B	1,366.28B
Gross Profit	73,786.23M	61,640.55M	44,843.91M	38,992.42M	43,141.80M
Operating income	39,785.50M	32,484.30M	19,197.66M	11,930.63M	16,948.44M
Income before tax	39,198.86M	29,082.80M	20,417.53M	15,083.23M	25,407.62M
Net income	23,811.62M	19,339.81M	14,682.98M	11,114.86M	19,317.74M
EBITDA	53,469.11M	45,388.12M	32,303.66M	28,403.58M	35,512.79M
Diluted EPS	9.10	7.42	5.63	4.22	7.32
Dividends Per Share	5.02	4.92	4.00	3.50	4.50
Total Assets	476,086.66M	443,945.23M	488,235.61M	584,350.61M	570,519.79M
Total liabilities	283,748.13M	261,923.03M	308,511.80M	397,903.83M	377,274.28M
Total equity	150,380.13M	148,269.59M	145,975.73M	150,028.83M	157,665.06M
Operating cash flow	7,517.64M	71,256.04M	17,877.82M	-23,182.96M	77,256.81M

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	38,222.27M	35,897.09M	39,240.70M	44,437.93M	44,198.23M
Gross Profit	2,323.67M	1,911.28M	1,474.02M	1,293.08M	1,395.60M
Operating income	1,252.92M	1,007.24M	631.03M	395.65M	548.26M
Income before tax	1,234.45M	901.76M	671.12M	500.19M	821.91M
Net income	749.87M	599.66M	482.63M	368.59M	624.91M
EBITDA	1,683.85M	1,407.34M	1,061.82M	941.93M	1,148.80M
Diluted EPS	0.28	0.23	0.18	0.14	0.23
Dividends Per Share	0.15	0.15	0.13	0.11	0.14
Total Assets	14,494.06M	13,774.71M	16,406.59M	19,011.31M	19,031.91M
Total liabilities	8,638.47M	8,126.93M	10,367.18M	12,945.43M	12,585.45M
Total equity	4,578.19M	4,600.50M	4,905.34M	4,881.05M	5,259.53M
Operating cash flow	236.74M	2,209.43M	587.64M	-768.80M	2,499.19M

Valuation Measures

Dec 2019
PER	9.24
ROA	3.34%
ROE	12.55%
Operating margin	1.24%
Profit margin	1.41%

Key executives

Chairman & Group CEO: Tzu Hsien Tung
President, Chief Executive Officer, GM & Director: Syh-Jang Liao
Chief Operating Officer & Senior Vice President: Te-Tzu Yao
Head-Finance & Spokesman: Hsiang Hsiang Wu
Senior Vice President-Research & Development: Pei-Chin Wang

Shareholders

ASUSTek Computer, Inc. (17.1%)
TONG ZI XIAN (3.7%)
The Vanguard Group, Inc. (2.7%)
Yuanta Securities Investment Trust Co., Ltd. (1.6%)
Dimensional Fund Advisors LP (1.6%)
BlackRock Fund Advisors (1.5%)
Norges Bank Investment Management (1.2%)
Canada Pension Plan Investment Board (0.4%)
Charles Schwab Investment Management, Inc. (0.4%)
Eastspring Investments (Singapore) Ltd. (0.4%)

Contact Details

Website:http://www.pegatroncorp.com
Address: 5F, No. 76 Ligong Street, Taipei, 112 61, Taiwan
Phone: +886.2.81439001

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Competitors

Compal Electronics, Inc.
Quanta Computer Inc.
Inventec Corporation
Universal Scientific Industrial (Shanghai) Co., Ltd. Class A
Wistron Corporation

Last Updated on 4 Aug, 2020