Primax Electronics Ltd. (4915 TT / 4915.TW) announced today its consolidated October revenue of NT$6.88 billion, which is a 4.6% year-on-year (YoY) gain and a 8.9% month-on-month (MoM) increase. Accumulated YTD sales amounted to NT$58.15 billion, up 5.3% YoY. 

Shrugging off the negative impacts of component shortages in 3Q21, revenue will likely see a healthy double-digit quarter-over-quarter (QoQ) gain in 4Q21. Traditionally, 4Q has been the hottest season for Primax sales, and with component shortages likely to ease off, we expect 4Q21 to be similar to the past. With 9M21 EPS already reaching NT$4.00, and gross margin and operating margin likely to improve on a half-on-half (HoH) basis in 2H21, Primax expects 2H21 EPS to exceed the first half, likely reaching a historical high figure for the company in 2021.

Looking at 4Q21 as a whole, Primax expects the continuous improvement in operating margin. Revenue from Intelligence Interface segment will remain stable from the PC and gaming segments and demand for MFPs will rebound strongly in 4Q21. For the Audio segment, due to component shortages in 3Q21, 4Q21 should see strong QoQ growth as revenue will benefit from a traditional hot season and delayed shipment from 3Q21. Police body cam growth rate will revitalize in 4Q21, shaking off the slow start in 1H21. For Visual Technology, car ADAS contributions will continue to increase, while the proportion from smartphones will continue to decline. 

For 2022, for new businesses, after years of cultivating, Primax expects 2022 to be a harvest year, with revenue from these new products contributing significantly more to the top and bottom-line. Car electronics will continue to be the bright spot as ADAS camera modules for EVs will remain strong, while demand for AIoT products will also surge. Primax expects hybrid work to become a trend, which will continue to support the demand for NBs. Coming off a lower base due to Covid, MFP/printer should also see strong demand in 2022.

Primax is also upgrading its manufacturing capabilities by moving towards Smart Manufacturing via Industrial 4.0 concept. We also expect our Thailand manufacturing site to be operational by the end of 4Q 2021.