Winmate Reports 58% Sequential Growth in Q2 Net Profit, H1 EPS at NT$7.09

Winmate Inc. (8114-TW), an industrial computer manufacturer, has announced its second-quarter financial report, reporting a post-tax net profit of NT$467 million, representing a 58% sequential increase but an 18.2% year-on-year decline. Earnings per share (EPS) stood at NT$4.34. For the first half of the year, post-tax net profit totaled NT$762 million, down 38.6% year-on-year, with EPS at NT$7.09.

Winmate's Q2 revenue reached NT$5.183 billion, up 46.46% sequentially and down 11.16% year-on-year. Gross margin was 39.45%, down 7.55 percentage points sequentially but up 39.45 percentage points year-on-year. Operating profit was NT$964 million, up 53.10% sequentially and down 39.87% year-on-year. Operating margin was 18.59%, up 0.81 percentage points sequentially and up 18.59 percentage points year-on-year.

For the first half, revenue was NT$8.722 billion, down 25.79% year-on-year. Gross margin was 42.51%, down 8.18 percentage points year-on-year. Operating profit was NT$1.593 billion, down 51.15% year-on-year, and operating margin was 18.27%, down 9.48 percentage points year-on-year.

Winmate explained that the decline in gross margin during Q2 was primarily due to significant price increases in key components such as memory and CPUs since the beginning of the year. While the company has passed on cost increases to customer pricing, this has been purely cost-pass-through and did not generate additional profit margins.

By business segment, Winmate stated that its Online-to-Offline Solutions (O2O Solutions) benefited from early procurement demand driven by price hike expectations in certain markets, along with contributions from multiple project shipments, resulting in a 17% year-on-year and 69% sequential revenue increase. The Embedded Foundry segment saw a 17% year-on-year revenue decline due to a high base from concentrated semiconductor testing platform project shipments in the same period last year. However, it achieved a 41% sequential growth, supported by recovering demand in software-defined data centers, digital healthcare, and networking.

Regionally, the Americas saw a 21% year-on-year decline due to the high base but recorded a 42% sequential increase. Europe and Asia experienced revenue growth of 43% and 21% year-on-year, respectively, driven by continued order recovery.