Pegatron Corp.

In the news

Apple suppliers scramble to keep vast factories virus-free Feb 13, 2020
China struggles to return to business after extended break Feb 11, 2020
Virus fears drive post-holiday Asian stock sell-off Jan 31, 2020
Pegatron to open Indonesia and Vietnam plants as China costs rise Jan 27, 2020
Taiwan outperforms other Asian tigers to notch 2.7% growth in 2019 Jan 21, 2020

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 2018	TWD	USD
Revenue	1,340.00B	44,437.93M
Gross Profit	38,992.42M	1,293.08M
Operating income	11,930.63M	395.65M
Income before tax	15,083.23M	500.19M
Net income	11,114.86M	368.59M
EBITDA	28,403.58M	941.93M
Diluted EPS	4.22	0.14
Dividends Per Share	3.50	0.11
Total Assets	584,350.61M	19,011.31M
Total liabilities	397,903.83M	12,945.43M
Total equity	150,028.83M	4,881.05M
Operating cash flow	-23,182.96M	-768.80M
	Currency in TWD	Currency in USD

Historical Data

TWD | USD

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	1,019.73B	1,213.71B	1,157.71B	1,193.80B	1,340.00B
Gross Profit	57,450.68M	73,786.23M	61,640.55M	44,843.91M	38,992.42M
Operating income	28,326.36M	39,785.50M	32,484.30M	19,197.66M	11,930.63M
Income before tax	26,582.41M	39,198.86M	29,082.80M	20,417.53M	15,083.23M
Net income	14,658.13M	23,811.62M	19,339.81M	14,682.98M	11,114.86M
EBITDA	42,078.40M	53,469.11M	45,388.12M	32,303.66M	28,403.58M
Diluted EPS	6.17	9.10	7.42	5.63	4.22
Dividends Per Share	4.03	5.02	4.92	4.00	3.50
Total Assets	457,093.14M	476,086.66M	443,945.23M	488,235.61M	584,350.61M
Total liabilities	282,221.91M	283,748.13M	261,923.03M	308,511.80M	397,903.83M
Total equity	133,670.93M	150,380.13M	148,269.59M	145,975.73M	150,028.83M
Operating cash flow	48,604.83M	7,517.64M	71,256.04M	17,877.82M	-23,182.96M

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	33,651.17M	38,222.27M	35,897.09M	39,240.70M	44,437.93M
Gross Profit	1,895.86M	2,323.67M	1,911.28M	1,474.02M	1,293.08M
Operating income	934.76M	1,252.92M	1,007.24M	631.03M	395.65M
Income before tax	877.21M	1,234.45M	901.76M	671.12M	500.19M
Net income	483.71M	749.87M	599.66M	482.63M	368.59M
EBITDA	1,388.57M	1,683.85M	1,407.34M	1,061.82M	941.93M
Diluted EPS	0.20	0.28	0.23	0.18	0.14
Dividends Per Share	0.13	0.15	0.15	0.13	0.11
Total Assets	14,464.05M	14,494.06M	13,774.71M	16,406.59M	19,011.31M
Total liabilities	8,930.50M	8,638.47M	8,126.93M	10,367.18M	12,945.43M
Total equity	4,229.82M	4,578.19M	4,600.50M	4,905.34M	4,881.05M
Operating cash flow	1,603.94M	236.74M	2,209.43M	587.64M	-768.80M

Valuation Measures

Dec 2018
PER	12.08
ROA	2.07%
ROE	7.50%
Operating margin	0.89%
Profit margin	0.82%

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 (3.5%)
The Vanguard Group, Inc. (2.7%)
Dimensional Fund Advisors LP (2.1%)
BlackRock Fund Advisors (1.6%)
Norges Bank Investment Management (1.2%)
Eastspring Investments (Singapore) Ltd. (0.8%)
Yuanta Securities Investment Trust Co., Ltd. (0.7%)
Charles Schwab Investment Management, Inc. (0.4%)
Canada Pension Plan Investment Board (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

Universal Scientific Industrial (Shanghai) Co., Ltd. Class A

Last Updated on 27 Mar, 2020