brand ASUS held a French speech meeting yesterday (10). Although the third quarter was affected by the rebound of the cryptocurrency price of the board caine compared with the peak of the second quarter, and the proportion of PC business increased, its gross profit margin and operating rate fell by 2 to 3 percentage points compared with the first half of the year. However, the losses of Yaxu Computer, an out-of-the-industry subsidiary, have been greatly converging. With the influx of out-of-the-industry profits such as investment and exchange returns, Asus's after-tax net profit in a single quarter still exceeded NT$10 billion, reaching NT$11.33 billion, the second highest in the previous quarter.
ASUS' cumulative brand consolidated revenue in the first three quarters reached NT$358.571 billion, an annual increase of NT$33.4%, gross profit margin was 20.57%, an annual increase of 3.61 percentage points, a annual increase of NT$10.01%, an annual increase of 3.64 percentage points, and a net profit after tax of NT$32.491 billion, an annual increase of NT$94.4%.
Hu Shubin pointed out that based on the overall inventory health and safety water level of the channel, the previous gap of up to 50% has now converged to 30%. In addition to the US market's severe shortage of ports and terminals, and lack of drivers in land transportation, the channel inventory water level has deteriorated, and Asus' October revenue has also been dragged down.
Hu Shubin said that Asus is still looking at the world entering a new normal of mixed life such as digital life, learning, etc., and is optimistic that productivity products such as laptops will become the mainstream of digital devices and are rigid demand. From the overall market perspective, it is expected that global personal computer demand will be up to 350 million units next year and in the next few years, which will increase by nearly 100 million units compared with the market size of 250-260 million units in 2019, and the market opportunities are promising.
Looking forward to next year, Hu Shubin believes that as enterprises gradually resume office operations, commercial demand will be stronger than consumer models. Asus will also lock in the regions and customer groups that have the advantage of the market, strengthen commercial layout, and estimate that the growth will reach 10-20% next year, which is better than the market average. Consumer products will also fully introduce OLED screens to enhance product competitiveness. It is estimated that they will also grow by nearly 10% next year.
In terms of educational demand, Hu Shubin believes that we should also observe the US market trends, because the US Chromebooks account for about 70% of the world's market, and the demand for most US K12 schools is gradually meeting. Therefore, we must pay attention to product cycles and changes in the US government budget in the future, but it is expected that the shipment of educational models can still maintain an annual growth rate of less than 5%.
The overall situation in the fourth quarter is expected to improve. Hu Shubin estimates that the order demand that ASUS has not yet met at this stage will drop from the previous 20% to below 20%, and the shipment momentum will be delayed until the first half of next year.
In addition, Asus' high-growth e-sports business has accounted for 45% of its overall revenue. In the past two years, it has increased its creator series that has expanded its full product line by three times since the beginning of this year. As for the commercial PC business, which has doubled by 100% year-on-year growth, Asus is still expected to be very optimistic next year and will continue to lock in key markets with growth momentum of more than 10 to 20% higher than the industry average. It will continue to focus on key markets and deepen its efforts in SMB and education fields.
In addition to bringing strong momentum to PCs and boards this year, Xu Xianyue pointed out that Asus has locked in the three major industries of smart manufacturing, smart medical care and smart retail in the fields of AI applications and AIoT, and has gradually emerged potential growth momentum. As for the smartphone business that once turned profitable in the second quarter, it is expected that shipments this year will still be difficult to reach the positive economic scale. However, Asus also internally evaluates the businessization of patented technology accumulated since 3G mobile phones. At that time, after integrating mobile phone-related businesses, it is expected to bring opportunities for the mobile phone business to turn profitable.
Source of information: Juheng.com/Business Times
Cover image source: Paixin.com
