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🇹🇼 Taiwan /Economy & Trade

AI Demand Continues Strong: Wha-Ye Forecasts Higher Q3 Gross Margin, Profit to Reach New Highs

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

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  • Electronic component distributor Wha-Ye (3036) reported record revenue and profit in Q2, driven by strong AI demand and a recovery in industrial and automotive sectors.
  • The company forecasts Q3 revenue to remain high, with gross margin expected to rise to 3.59%, though AI data center product shipments may slightly decrease due to scheduling.
  • Wha-Ye anticipates continued strong demand for AI in the second half of the year and into 2025, with non-AI sectors also showing steady recovery.

Electronic component distributor Wha-Ye (3036) announced record-breaking revenue and profits for the second quarter, fueled by robust demand for AI products and a resurgence in the industrial and automotive markets. The company reported consolidated revenue of NT$59.07 billion, a 20% increase from the previous quarter and a 128% jump year-on-year. Net profit soared by 39% quarter-on-quarter and 243% year-on-year to NT$9.71 billion, with earnings per share reaching NT$7.68.

Looking ahead to the third quarter, Wha-Ye projects its performance to remain strong. The company anticipates revenue to be roughly flat compared to Q2, with an estimated NT$59.2 billion at the midpoint. Gross margin is expected to improve to 3.59% from 3.41% in Q2, and net profit is forecast to reach NT$10.17 billion, a 4% increase from the previous quarter and a 167% rise year-on-year.

Despite the overall positive outlook, Wha-Ye noted that revenue from AI data center products might see a slight single-digit percentage decrease quarter-on-quarter due to shipment schedules. However, the company emphasized that this is a timing issue and maintained its expectation of substantial growth in its data center business for the full year. The company also highlighted a steady recovery in its non-AI segments.

Wha-Ye expressed optimism for the future, anticipating continued demand growth for AI in the second half of the year and into 2025. This sustained demand is expected to drive overall operational growth as AI technology gradually penetrates more sectors. The company's positive outlook is supported by the ongoing capital expenditure by major cloud service providers and AI-related manufacturers.

The growth of consumer spending is a positive signal for the industrial world because it shows that domestic demand remains strong. However, we must also use the increase in imported consumer goods as a momentum to accelerate the strengthening of the national industrial structure.

— Agus Gumiwang KartasasmitaResponding to increased consumer spending and import trends.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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