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Elan Microelectronics Projects Strong Growth, Driven by AI PC Demand and Solid Q1 Performance

With an impressive 122.5% increase in net profit and robust demand for AI PCs, Elan Microelectronics forecasts continued momentum into the second half of the year
e 2458.TW Mid and Small Cap 2000
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Elan Microelectronics reported a significant increase in its first-quarter performance today, with earnings per share reaching 2.4 yuan, bolstered by a 29.1% year-on-year increase in revenue to 3.106 billion yuan. The company’s net profit after tax soared by 122.5% compared to last year, demonstrating strong operational efficiency and market demand.

Chairman  I-Hau Yeh expressed optimism about the future, particularly highlighting the potential of AI PCs, a sector where Elan has a commanding 90% market share in component supply. According to Yeh, AI PC technology is expected to “ferment” in popularity by the fourth quarter and continue into the first half of the next year. This optimism is based on current industry misunderstandings about AI PC applications, which, once resolved, are expected to drive further adoption and demand.

Elan’s product portfolio, including Chromebooks and pointing devices, continues to perform well, with Chromebook shipments in the first half of the year reaching 80% of last year’s total. Despite a slight dip in MCU shipments, the overall performance of pointing devices has been robust, promising a stronger second quarter compared to the first.

For the upcoming quarter, Elan anticipates revenue to be between 3 billion and NT$3.3 billion, with a gross profit margin of 47% to 49%, and an operating profit margin of 21.3% to 25.7%. Dividends are expected to remain consistent at 80%.

Looking ahead, Yeh highlighted the traditional peak season in Q2, with Elan set to supply two of the top three e-book manufacturers. He also noted the increased import volume in the United States and a hopeful rebound in domestic demand, despite ongoing economic challenges in Europe and China.

Elan Microelectronics stands poised for continued growth, leveraging its leading position in the burgeoning AI PC market and strong product demand across various segments.

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