Chicony Electronics (2385.TT) reports NT$2.23 EPS for 1Q21, exceeding street consensus Chicony Electronics (2385.TT) reports 1Q21 results on May 6th, 2021. Chicony’s EPS was NT$2.23, beating street consensus, showing a huge increase compared to only NT$0.06 in 1Q20.

1Q21 Revenue Jumped 39% YoY Thanks to Strong Notebook Demand

Due to the very strong demand in notebook and gaming PC products, 1Q21 revenue growth was 39%, well above street consensus. Notebook components revenue, including keyboard, camera modules and adaptors, delivered 68% YoY growth. Gaming PC applications revenue, including keyboard and adaptor, delivered 74% YoY growth.

Operating Income Grew 44% YoY in 1Q21. OPM was 7.4%, Reaching Record High in the Same Period of the Last 14 Years

In 1Q21, gross margin of 17.5% and operating margin of 7.4% are pretty much in line with guidance. Thanks to 39% YoY increase in revenue scale and stable gross margin performance, gross profit increased 56% YoY in 1Q21. The operating expense is well controlled at 10.1%, so operating margin reached 7.4%, and operating profit achieved 40%/44% QoQ/YoY growth. In 1Q21, Chicony recorded net profit of NT$1,569 and EPS of NT$2.23, better than street consensus.

A Series of AI-Enabled Image Devices to be Launched in 2021

Chicony has a leading edge in image technology and works with many global tier-1 brands to roll out new products this year. Aside from the success in smart home image products, Chicony is expanding into automotive, enterprise and digital health sectors for the first time. The driver monitor system (DMS) product is for the automotive market, and 2 models for fleet management will be rolled out in 2Q21 and 2H21. In the enterprise market, 2 corporate surveillance IP cams will be launched in 2Q21, and 8 products for video conference system will be launched throughout the whole year. As to the digital health sector, Chicony will supply camera module to a disposable endoscope product in 2Q21. With more high-value products adding into the image product portfolio, Chicony expects to build a more balanced product portfolio and yield higher margin in the long-term.