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Ennoconn Achieves Record Financial Performance in 2023, Announces Generous Cash Dividend

With a strategic focus on AIoT solutions, Ennoconn posts significant growth in revenue and profits, rewarding shareholders with a high cash dividend
Taiwan
e 6414.TW Mid and Small Cap 2000
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Ennoconn Corporation, a leading name in the industrial computer sector, has announced remarkable financial achievements for the year 2023. The company reported a consolidated revenue of NT$121.64 billion, marking a 12.4% increase from the previous year, and an operating profit of NT$5.21 billion, up by an impressive 68.8% from 2022. Both revenue and operating profit reached new all-time highs, underlining the company’s robust growth trajectory.

The net profit attributable to the parent company, after tax, stood at 2.26 billion yuan, translating to an after-tax earnings per share (EPS) of 19.01 yuan. Reflecting on its solid capital reserves and financial health, Huahan’s board of directors approved a substantial cash dividend of NT$11.41 per share for 2023, allocating nearly 70% of the after-tax net profit. This announcement corresponds to a cash yield rate of 3.18%, based on the stock’s closing price on March 29.

Ennoconn’s revenue distribution by region for 2023 showcased a significant portion coming from Europe (36.7%) and the United States (27.1%), with China contributing 12%. The company’s strong performance in Europe and the U.S. is attributed to sustained demand in smart finance, retail, and entertainment gaming sectors, alongside industrial IoT and AIoT solutions. Notably, revenue growth in Europe and the U.S. surged by 19.5% and 54.0%, respectively.

The product range of the group emphasized a balanced approach with IIoT+SI and IIoT+AI each constituting 45% of the product portfolio, while AIoT+Cloud accounted for 10%. The latter segment witnessed a remarkable increase from 6% in 2022, reaching revenues of NT$11.5 billion, showcasing the rising demand for software and hardware suites combined with subscription services.

Ennoconn’s strategic investments in EsaaS smart platform integration solutions have paid off, with significant adoption across smart cities, buildings, factories, and various other sectors. This focus on high-margin software+ services led to a whopping 74% increase in annual performance, amounting to NT$11.5 billion in 2023.

The diverse market application of Ennoconn’s offerings ranged from APP/SW (26%), Cloud AI (18%), Edge AI (26%), IT/OT Services (25%), to Subscription (5%), with a revenue ratio of pure software and combined solutions at 42:58. This strategic mix contributed to a gross profit margin of 19.4% in 2023, an improvement of 1.3 percentage points from 2022, and an operating net profit margin of 4.3%, up by 1.5 percentage points from the previous year. The net profit margin attributable to the parent company after tax for the current period was 1.8%, marking a 0.65 percentage point increase from 2022.

Ennoconn’s financial performance in 2023 not only demonstrates its leading position in the market but also its commitment to delivering shareholder value through significant dividend payouts and continuous innovation in AIoT solutions.

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