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DFI Looks to the Demands for the Six Major Markets of New Infrastructure, New Energy, and More Resulting in Steady Profitability Growth
DFI, the world leading brand in embedded motherboards and industrial computers, held an online investor conference on May 10, explaining that due to past price adjustment strategies and stronger market demand in different regions, profitability continued to grow in the first quarter. Looking to the future, strong demand for new infrastructure, new energy applications, and information security will become the driving forces behind DFI's mid-to long-term growth. In the short term, DFI will help customers optimize their inventory to prepare for subsequent developments.
Although DFI was affected by global inflation, interest rate hikes in Europe and the United States, and supply chain inventory adjustments in the first quarter, the company benefited from the effects of price adjustments for past orders, strong global demand for new infrastructure, and orders from the gaming industry after the pandemic. This resulted in a gross profit of NT$835 million, representing a year-on-year increase of 17.77% and reaching a record high for the period. Profits also experienced double digit growth compared to the same period in the previous year. Earnings per share (EPS) reached NT$1.10, showing a year-on-year increase of 50.68% and representing steady growth.
Michael Lee, Vice Chairman of DFI, stated that with the development of global renewable energy, electric vehicle charging stations, and other new infrastructure projects driving related demand, in the medium to long term, the essential needs in six major areas, namely new energy applications, information security, smartification, high-performance computing, rail transportation, and new infrastructure, remain unchanged and will become the driving forces for DFI's future growth. Due to the easing of component shortages, the delivery time for goods has gradually shortened from 10 months in the past two years to 4 months, like before the pandemic. In the short term, DFI is fully assisting customers in adjusting inventory days to ensure the sound mid- to long-term development of the supply chain.
Alexander Su, President of DFI, stated that in terms of overall operations in the first quarter, both the embedded board and network security businesses maintained growth compared to the same period last year, based on their respective revenue contributions among the four major business units. The industrial automation and high-performance computing businesses are expected to gradually emerge from the adjustment period with careful control by the management team and improvements in the material status. There is an opportunity for order delivery conditions and various operational indicators to continue to improve and grow. At the same time, the company is moving towards optimizing its operational structure and product costs, while continuously monitoring the recovery of industry dynamics.
DFI's first quarter gross profit margin was 21.86%, operating margin was 5.21%, and net income margin after tax was 3.30%. Compared to 18.25%, 3.58%, and 2.83% in the same period last year, it showed signs of "three increases for three rates", growing across the board compared to the previous quarter. Gross profit was NT$835 million, representing a year-on-year increase of 17.77%. Operating profit was NT$199 million, representing a year-on-year increase of 43.17%. Net income after tax was NT$126 million, representing a year-on-year increase of 14.55%. The net profit after tax attributable to the parent company was NT$125 million, representing a year-on-year increase of 48.81%. EPS reached NT$1.10, representing a year-on-year increase of 50.68%. Consolidated revenue was NT$3.820 billion, representing a year-on-year decrease of 1.65%.