The profit margin of Q3 is increasing, and Q4 operation is conservative.

The third quarter benefited from the peak season effect, driving the growth of the main product line, plus the combination of the product mix, leading to the growth of gross profit margin and profit and benefit ratio. The net profit after tax came to 2 billion 640 million yuan (NT $, the same below), the Quarterly increase of 50%, and the net profit of the single quarter was 1.14 yuan, a record high in the past two years.

Guang Bao held a law meeting yesterday (30), announces the third quarter results. Revenue 53 billion 400 million yuan, quarter decrease 2%, year decrease 5%, if do not contain transfer of mobile phone camera module business, then increase 17%, increase year by year 5%. Guang Bao pointed out that the third quarter was mainly benefited from cloud computing, LED components and outdoor lighting, storage devices and AI smart home devices and other market demand growth; internal factors were supply chain management, product mix optimization and operational efficiency improvement, gross margin and profit rate were 15.8% and 6.2%, respectively, increasing by 3.5% and 3% respectively.

This year, Guang Bao has gradually dealt with the loss making business, including 3 subsidiaries of the mobile camera module business and the portable business group. Although it has led to a decline in overall revenue, it has raised the gross profit margin and driven the profit growth.

According to the business group, the revenue of the Department of information products is 62%; cloud computing high level servers, Netcom power management systems and AI smart home devices and consumer electronics power products continue to grow, and the market share of computer peripherals such as keyboard and mouse has been promoted, and the overall revenue of the third quarter has been achieved. Season increased by 16%. Storage sector revenue accounted for 18%, and cloud computing and game related applications grew by 28% in the quarter.

The total revenue in the first three quarters of this year was 156 billion 600 million yuan, the gross profit margin was 13%, the profit and interest rate was 3.6%, the net profit after the first three quarters was 5 billion 400 million yuan, and the earnings per share were 2.34 yuan.

Looking forward to the fourth quarter, we are optimistic about cloud computing applications and AI smart home devices market demand, invisible LED and outdoor lighting and other core businesses. Affected by the Sino US trade war, the economic uncertainty increased, coupled with the third quarter of the year, the fourth quarter revenue is expected to decrease.

Chen Guangzhong, chief executive officer of Guang Bao technology, pointed out that because of the trade war between China and the United States, the uncertainty of the terminal market is higher. At present, the price of orders is not high in the first quarter of next year. This involves the progress of the client inventory and terminal market.

Facing the increasingly tense situation of Sino US trade war, Chen Guangzhong stressed that up to now, the increase in tariffs has less than 2% impact on the revenue of the company. From next year, the impact is still in the low single digit (less than 5%).

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