Advantech Reports 27% YoY Net Profit Growth in First Half, EPS at NT$3.95; Strong Momentum Expected in Second Half

Industrial computer manufacturer Advantech (3479-TW) reported a post-tax net profit of NT$285 million in the first half of the year, representing a 27% year-on-year increase, with earnings per share (EPS) at NT$3.95. In the second half, growth momentum is expected to remain strong, supported by increasing medical product shipments, recovery in voting machine orders, rising demand from new semiconductor and communications projects, and expanded shipments tied to NVIDIA's (NVDA-US) Jetson platform.

Analysts project that Advantech's revenue in the second half could grow approximately 20% compared to the first half, with full-year EPS potentially exceeding NT$9.

The company's first-half revenue reached NT$4.575 billion, up 13.59% year-on-year. Gross margin stood at 26.01%, down 0.54 percentage points from the prior year. Operating profit was NT$377 million, down 6.51% year-on-year, with an operating margin of 8.25%, a decline of 1.77 percentage points.

In Q2, gross margin temporarily dipped below historical averages due to product mix effects on U.S.-bound shipments and the deferral of certain project royalty recognitions to the second half. However, management anticipates a rebound in gross margin going forward, driven by product mix optimization and the reversal of deferred NRE (non-recurring engineering) royalties.