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Pan-International Industrial Projects Steady Revenue but Lower Profits in 2023, Eyes Growth in 2024

p 2328.TW Mid and Small Cap 2000 Tech 350
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Pan-International Industrial, a prominent player in the tech industry, shared its financial outlook during a recent press conference. The company expects its 2023 revenue to mirror last year’s figures, but forecasts a slight decline in profit performance. This anticipated drop is primarily attributed to decreased dividends from its panel factory, Innolux, impacting Pan-International Industrial’s non-industrial income. However, the company remains optimistic about a single-digit percentage increase in overall performance for 2024, with improved gross profit margins that are expected to align with 2022’s profitability levels.

In the third quarter of 2023, Pan-International Industrial reported a revenue of 6.885 billion yuan, marking a 10.74% quarterly increase and a 6.18% annual growth. Despite these gains, the company saw a dip in its gross profit margin, which stood at 11.8%, down 1.5 percentage points year-on-year. Its operating profit rate and net profit margin also experienced declines on an annual basis, though there was a quarterly increase in operating profit rate.

Looking ahead, Pan-International Industrial forecasts a stable year-on-year revenue from its PCB and peripheral products in the coming year. The company is particularly bullish about its automotive high-voltage and high-frequency wiring harnesses, expecting double-digit growth. The system assembly segment also shows potential for year-on-year growth. Currently serving 3 to 4 Chinese car manufacturers, Guangyu anticipates an increase in electric vehicle product volumes between the first and second quarters of the next year and plans to add another Chinese car manufacturer to its client roster.

Despite a predicted slowdown in China’s auto market growth in 2023, Pan-International Industrial’s automotive products, driven by strong export sales performance of its clients, have seen a significant increase in revenue contribution, from 17% in the first 10 months of this year compared to the full year of 2022. The company expects this figure to reach 20% next year. In absolute terms, automotive product revenue is projected to grow by 20% to 30% this year and an additional 10% to 20% in the next year, with an average gross profit margin of 10% to 15%.

Pan-International Industrial assures that its current production capacity is sufficient to meet the upcoming demand, leading to a slight decrease in capital expenditures for the next year. This strategic positioning indicates Guangyu’s adaptive approach in navigating market challenges and capitalizing on growth opportunities in the evolving tech landscape.

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