Primax Electronics Ltd. (4915 TT / 4915.TW) announced today its consolidated April revenue of NT$6.37 billion, which is a 5.0% year-on-year (YoY) increase and a 8.3% month-over-month (MoM) drop. While demand for MFPs, police body cameras and audio remain strong, Aprill revenue was slightly negatively impacted from China’s Covid lockdown, as Kunshan production were temporaily shut down which casued 5% revenue shortall in April. Primax continues to remain optimistic about its revenue momentum in 2Q22, as the negative impact is temporary and orders are being pushed back but not cancelled.

In 1Q22, information products accounted for 53% of Primax’s total revenue, followed by smart liftstyle products (26%) and Auto / Industrial AIoT related products (21%). Compared to last year, Auto / Industrial AIoT products have significantly become more important to Primax, as the weighting has increased from 13% in 1Q21 and 16% in 4Q21 to the 21% in 1Q22.

For 2022, for new businesses, after years of cultivating, Primax expects 2022 to be a harvest year with full year revenue expected to see a low double-digit YoY gain. Revenue from new products would contribute significantly more and the proportion of new products as a percent of revenue will continue to increase in 2022. Car electronics will continue to be the bright spot as ADAS camera modules for EVs will remain strong, Primax expects car ADAS revenue growth will outpace our major client Tesla’s growth rate in 2022, backed by wallet share gains from new project wins at multiple production sites. Starting from 2022, other major EV clients could also inject multiple years of growth to our car ADAS business. With component shortages easing off, policy body camera revenue should see strong growth in 2022 as shipment delays would be a non-issue going forward. Demand for AIoT products such as smart door lock, surveillance, and fitness products will also surge. Apart from the aforementioned growth drivers for 2022, Primax is also actively engaged with Metaverse, with aims of becoming a long-term and reliable supplier of camera modules and that this new business would be a significant revenue contributor in the next few years.

Furthermore, Primax expects hybrid work to become a trend, which will continue to support demand for NBs. Coming off a lower base due to Covid, MFP/printer should also see strong demand in 2022. For the Audio segment, due to component shortages in 2H21, delayed shipment has led to less-than-expected revenue and earnings. Once component shortages have eased off and with more revenue contributions from higher margin professional audio products, Tymphany should see stronger revenue and margin recovery in 2022.

Primax is also upgrading its manufacturing capabilities by moving towards Smart Manufacturing via Industrial 4.0 concept. With Thailand’s plant now completed and finished the relocation, Primax expects the new plant to be cost competitive soon and become an important strategic manufacturing site outside of China that provides flexibility and efficiency in the long-run. Apart from Thailand, Primax is also expanding in Taiwan with its new Hsinchu plant. The state-of-the-art facility based in Zhubei City, Hsinchu County, will support R&D and product development, be highly automated, and focus on higher margin niche products such as car ADAS, surveillance and security modules, and AIoT related applications and modules.