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Electronic Technology

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 2019 TWDUSD
Revenue1,366.28B44,198.23M
Gross Profit43,141.80M1,395.60M
Operating income16,948.44M548.26M
Income before tax25,407.62M821.91M
Net income19,317.74M624.91M
EBITDA35,512.79M1,148.80M
Diluted EPS7.320.23
Dividends Per Share4.500.14
Total Assets570,519.79M19,031.91M
Total liabilities377,274.28M12,585.45M
Total equity157,665.06M5,259.53M
Operating cash flow77,256.81M2,499.19M
Currency in TWDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 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 2015Dec 2016Dec 2017Dec 2018Dec 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
PER9.24
ROA3.34%
ROE12.55%
Operating margin1.24%
Profit margin1.41%

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

Related Companies

  • Pegatron Service Singapore Pte Ltd.
  • Pegatron Corp. (Guangdong Province)
  • Pegatron Corp. (Chongqing Province)
  • Pegatron Corp. (Jiangsu Province)
  • Pegatron Corp. ESOP
  • Pegatron Corp. (US)
  • Pegatron Corp. (China)
  • AVY Precision Electroplating (Suzhou) Co. Ltd /Private Group/
  • Mingshuo Computer (Suzhou) Co. Ltd.
  • Calrock Holdings LLC
  • ASUS Service Canada
  • Pega International Ltd.
  • Starlink Electronics Corp.
  • Chieh-Hsin International, Inc.
  • Pegatron Technology Service, Inc.
  • Pegatron Japan, Inc.
  • Pegatron USA, Inc.
  • Advansus Computer Co. Ltd.
  • Pegatron Holding Ltd.
  • Unihan Corp.
  • ASUS Investment Co., Ltd.
  • Asuspower Corp.
  • Asuspower Investment Co., Ltd.
  • ASUSTek Investment Co., Ltd.

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

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