Primax Electronics Ltd
TWSE:4915
Primax Electronics Ltd
In the bustling world of electronics manufacturing, Primax Electronics Ltd. has carved a niche for itself with its relentless pursuit of innovation and efficiency. Founded in 1984 and headquartered in Taiwan, Primax began its journey focusing on computer peripherals. Over the years, it honed its expertise in producing high-quality components such as mice, keyboards, and digital cameras. However, what truly sets Primax apart is its ability to seamlessly blend advanced technology with cost-effective manufacturing processes, ensuring that it stays competitive in a dynamic market landscape.
Primax's business model is intricately tied to the global supply chain, navigating both the complex demands of consumer electronics and the precision required by sophisticated optical and imaging systems. The company derives its revenue by not only creating its own branded products but also serving as an original design manufacturer (ODM) and original equipment manufacturer (OEM) for major technology firms worldwide. Through these strategic partnerships, Primax can leverage economies of scale and fine-tune production efficiencies, which enhance its profitability. Its ability to innovate and adapt to changing technological trends solidifies Primax Electronics as a vital player in the ever-evolving electronics industry.
In the bustling world of electronics manufacturing, Primax Electronics Ltd. has carved a niche for itself with its relentless pursuit of innovation and efficiency. Founded in 1984 and headquartered in Taiwan, Primax began its journey focusing on computer peripherals. Over the years, it honed its expertise in producing high-quality components such as mice, keyboards, and digital cameras. However, what truly sets Primax apart is its ability to seamlessly blend advanced technology with cost-effective manufacturing processes, ensuring that it stays competitive in a dynamic market landscape.
Primax's business model is intricately tied to the global supply chain, navigating both the complex demands of consumer electronics and the precision required by sophisticated optical and imaging systems. The company derives its revenue by not only creating its own branded products but also serving as an original design manufacturer (ODM) and original equipment manufacturer (OEM) for major technology firms worldwide. Through these strategic partnerships, Primax can leverage economies of scale and fine-tune production efficiencies, which enhance its profitability. Its ability to innovate and adapt to changing technological trends solidifies Primax Electronics as a vital player in the ever-evolving electronics industry.
Revenue: Q2 revenue was TWD 14.6 billion, down 5.1% year-over-year, mainly due to the appreciation of the new Taiwan dollar.
Gross Margin: Gross margin reached a historic high of 17.5%, up 0.3 percentage points quarter-over-quarter and 0.2 percentage points year-over-year.
Profitability: Q2 EPS was TWD 1.6, nearly flat compared to Q1 (TWD 1.61), despite foreign exchange headwinds.
Product Mix: Automotive and AIoT revenue grew by 3.5% year-over-year and now comprise 33% of revenue, benefiting from new products and strong shipment momentum.
Guidance: Full-year revenue in NTD is expected to be slightly better than last year; gross margin for the year is expected to continue rising unless major currencies appreciate significantly.
Tariff & FX Strategy: Management sees limited impact from tariffs due to exemptions and effective hedging, with most currency risks managed via natural hedging and monthly adjustments.
Dividend: Next year's dividend payout ratio is planned at 80%, with results expected to be better than last year.
Capex: 2024 capital expenditure of TWD 1.5 billion was reiterated, mainly for R&D and facility upgrades.
