Pegatron Corp.

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 2022	TWD	USD
Revenue	1,317.59B	44,195.50M
Gross Profit	54,808.23M	1,838.40M
Operating income	25,394.91M	851.80M
Income before tax	23,917.22M	802.24M
Net income	15,339.29M	514.51M
EBITDA	40,200.86M	1,348.43M
Diluted EPS	5.60	0.18
Dividends Per Share	4	0.13
Total Assets	636,222.78M	20,699.93M
Total liabilities	421,654.52M	13,718.81M
Total equity	182,488.56M	5,937.38M
Operating cash flow	21,374.99M	716.96M
	Currency in TWD	Currency in USD

Historical Data

TWD | USD

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	1,340.00B	1,366.28B	1,399.33B	1,261.38B	1,317.59B
Gross Profit	38,992.42M	43,141.80M	47,675.73M	44,742.65M	54,808.23M
Operating income	11,930.63M	16,948.44M	19,074.22M	17,325.09M	25,394.91M
Income before tax	15,083.23M	25,407.62M	29,323.52M	27,056.73M	23,917.22M
Net income	11,114.86M	19,317.74M	20,207.59M	21,022.85M	15,339.29M
EBITDA	28,403.58M	35,512.79M	37,391.92M	30,972.28M	40,200.86M
Diluted EPS	4.22	7.32	7.63	7.62	5.60
Dividends Per Share	3.50	4.50	4.48	5.00	4
Total Assets	584,350.61M	570,519.79M	684,346.60M	676,770.36M	636,222.78M
Total liabilities	397,903.83M	377,274.28M	485,406.08M	482,503.48M	421,654.52M
Total equity	150,028.83M	157,665.06M	162,594.58M	166,604.54M	182,488.56M
Operating cash flow	-23,182.96M	77,256.81M	-26,496.42M	62,500.81M	21,374.99M

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	44,437.93M	44,198.23M	47,524.39M	45,159.30M	44,195.50M
Gross Profit	1,293.08M	1,395.60M	1,619.17M	1,601.84M	1,838.40M
Operating income	395.65M	548.26M	647.80M	620.26M	851.80M
Income before tax	500.19M	821.91M	995.89M	968.66M	802.24M
Net income	368.59M	624.91M	686.29M	752.64M	514.51M
EBITDA	941.93M	1,148.80M	1,269.91M	1,108.85M	1,348.43M
Diluted EPS	0.14	0.23	0.25	0.27	0.18
Dividends Per Share	0.11	0.14	0.15	0.17	0.13
Total Assets	19,011.31M	19,031.91M	24,355.70M	24,461.28M	20,699.93M
Total liabilities	12,945.43M	12,585.45M	17,275.46M	17,439.67M	13,718.81M
Total equity	4,881.05M	5,259.53M	5,786.69M	6,021.77M	5,937.38M
Operating cash flow	-768.80M	2,499.19M	-899.87M	2,237.61M	716.96M

Valuation Measures

Dec 2022
PER	11.22
ROA	2.33%
ROE	8.78%
Operating margin	1.92%
Profit margin	1.16%

Key executives

Vice Chairman & Deputy Chief Strategy Officer: Jason Cheng
Co-President & Co-Chief Executive Officer: Kuo-Yen Teng
Co-President & Co-Chief Executive Officer: Kuang Chih Cheng
Chief Financial Officer & Spokesman: Hsiang Hsiang Wu
Co-Chief Technology Officer & Senior VP: Pei-Chin Wang

Shareholders

ASUSTek Computer, Inc. (16.8%)
TUNG TZU HSIEN (3.6%)
Yuanta Securities Investment Trust Co., Ltd. (3.0%)
SHIH CHUNG TANG (2.5%)
The Vanguard Group, Inc. (2.4%)
HSU SHIH CHANG (2.1%)
BlackRock Fund Advisors (1.7%)
Norges Bank Investment Management (1.1%)
Dimensional Fund Advisors LP (1.0%)
Fubon Asset Management Co., Ltd. (0.7%)

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

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

Last Updated on 21 Mar, 2023