TECO Electric Machinery Co Ltd
TWSE:1504
TECO Electric Machinery Co Ltd
Founded in 1956, TECO Electric Machinery Co Ltd has grown from its humble origins in Taiwan to become a stalwart in the global manufacturing industry. Initially focused on the production of industrial motors, TECO quickly established a reputation for reliability and innovation, catering to diverse sectors like automation, water treatment, HVAC, and energy. The company's engineering prowess and commitment to quality have formed the backbone of its expansive portfolio, which includes everything from large-scale industrial motors to cutting-edge electronics and smart grid solutions. This versatility has allowed TECO to effectively capitalize on the increasing demand for industrial automation across Asia, the Americas, and Europe.
To stay competitive in an ever-evolving market, TECO has strategically diversified its revenue streams. By leveraging its core expertise in electrical engineering, the company has expanded into the fields of smart manufacturing, energy-efficient appliances, and wind power generation. Establishing partnerships and joint ventures worldwide, TECO has been able to enhance its research and development capacities, ensuring that it remains at the forefront of technological advancements. This diversification not only strengthens its financial foundation but also aligns with the global push towards energy efficiency and sustainable practices, providing TECO a robust platform for sustained growth and innovation in the future. Through a combination of strategic foresight and market adaptation, TECO has effectively secured its position as a leading force in the electric machinery landscape.
Founded in 1956, TECO Electric Machinery Co Ltd has grown from its humble origins in Taiwan to become a stalwart in the global manufacturing industry. Initially focused on the production of industrial motors, TECO quickly established a reputation for reliability and innovation, catering to diverse sectors like automation, water treatment, HVAC, and energy. The company's engineering prowess and commitment to quality have formed the backbone of its expansive portfolio, which includes everything from large-scale industrial motors to cutting-edge electronics and smart grid solutions. This versatility has allowed TECO to effectively capitalize on the increasing demand for industrial automation across Asia, the Americas, and Europe.
To stay competitive in an ever-evolving market, TECO has strategically diversified its revenue streams. By leveraging its core expertise in electrical engineering, the company has expanded into the fields of smart manufacturing, energy-efficient appliances, and wind power generation. Establishing partnerships and joint ventures worldwide, TECO has been able to enhance its research and development capacities, ensuring that it remains at the forefront of technological advancements. This diversification not only strengthens its financial foundation but also aligns with the global push towards energy efficiency and sustainable practices, providing TECO a robust platform for sustained growth and innovation in the future. Through a combination of strategic foresight and market adaptation, TECO has effectively secured its position as a leading force in the electric machinery landscape.
Revenue: Q3 net sales were TWD 15.065 billion, flat versus Q2 and up 1.7% year-on-year, driven by growth in Green Mechatronic Solutions in North America and Intelligence Energy projects.
Margins: Q3 gross margin was 24.6%, down 1.2% quarter-on-quarter due to product mix, but up 2.1% year-on-year from higher high-voltage product sales, currency appreciation, and lower material and freight costs.
Operating Profit: Q3 OP margin was 11.1%, down 0.7% quarter-on-quarter but up 2.2% year-on-year, tracking gross margin trends.
EPS: Q3 EPS was TWD 4.7, down TWD 0.54 quarter-on-quarter and down TWD 0.04 year-on-year, mainly due to dividend distribution and currency fluctuations.
Guidance: Q4 gross margin is expected to be flat or slightly higher quarter-on-quarter and up year-on-year; Green Mechatronic Solutions set for flat to slightly higher revenue, Intelligence Energy to see revenue decline, Air and Intelligent Life to grow year-on-year but decline quarter-on-quarter due to seasonality.
Strategic Expansion: New factories in Mexico and India are ramping up, enhancing market access in North America and India and expected to contribute more from next year.
Order Backlog: Large motor orders remain steady with BB ratio above 1, but low-voltage demand is weak in Taiwan and China.
