Yageo, a leading passive component manufacturer, reported a record consolidated revenue of NT$11.005 billion (US$361 million) in July, marking the fifth consecutive month surpassing the NT$10 billion mark. This represents a 10% month-on-month increase and a 23.8% year-on-year rise. For the first seven months of the year, Yageo’s consolidated revenue reached NT$70.928 billion (US$2.33 billion), a 14.8% increase over the same period last year.
The company attributed its record-breaking July performance to robust demand for AI-related applications and increased purchasing momentum in key markets, including Europe, the United States, and Japan. Additionally, production normalized at factories in Greater China, further boosting revenue.
Despite uncertainties like global inflation and interest rate fluctuations, Yageo maintains a positive outlook. The company plans to closely monitor market dynamics and increase capacity utilization in response to market conditions, particularly in the AI application sector.
Yageo projects low single-digit percentage increases in revenue, gross profit margin, and operating profit margin this quarter. The capacity utilization rate for standard products is expected to rise from 50% in the second quarter to 65%, while special products will increase from 70% to 75%.
Yageo emphasized maintaining healthy inventory levels with 128 inventory days, the lowest in recent quarters. The company aims to balance output and inventory without significant changes in the near future.
Foreign investors are optimistic about Yageo’s growth prospects due to stable pricing and healthy inventory levels in the passive component industry. Yageo’s investment in new products and a diversified product structure is expected to support stable revenue and profits during industry downturns, promising better growth prospects.
Yageo’s stock closed at NT$701, down 0.14%, with active buying from foreign investors and domestic investment firms.
