Holtek’s 1Q19 EPS was NTD0.9 and its 2H19 shipments may grow

Holtek (6202-TW) held an investor conference today on 29th. Due to the following: a) weak demand of e-sports and crypto mining, b) client’s inventory adjustment c) the increase of operating expenses, Holtek’s 1Q19 net profit was NTD203mn (-22.8% QoQ, -9.9% YoY) with EPS of NTD0.9.

Holtek’s 1Q19 revenue was NTD1.038bn (-12.7% QoQ, -4.4% YoY). Its 1Q19 GM was 48.5% (-0.3 QoQ, -0.4% YoY). Its operating profit margin was 18.7% (-3.5% QoQ, -2.4% YoY). Its 1Q19 net profit was NTD203mn (-22.8% QoQ, -9.9% YoY) with EPS of NTD0.9.

In 2Q19, catalyzed by the recovery of client’s pull-in, institutional investors expect that its 2Q19 revenue may increase by 15-20%. And, its operating profit margin is expected to recover to more than 20%. Moreover, as the company may enter into the peak season starting from 2H19, wireless headsets shipments, delivering to Huawei and Xiaomi, may reach at least 5 million in FY19.

Holtek’s spokesman Armstrong Tsai told that due to the weakness of crypto mining and e-sports market, client’s inventory adjustment, and a too low deal price from a panel client, the company had not received orders since last year, and leading Holtek’s 1Q19 shipment of 32bit MCU to reduce by 40%.