Primax Electronics Ltd. (4915 TT / 4915.TW) announced today its consolidated October revenue of NT$6.26 billion, which is a 9.0% year-on-year (YoY) decline and a 16.9% month-over-month (MoM) drop. For the first 10 months (10M22), Primax’s accumulated consolidated revenue reached NT$66.77 billion, a 14.8% YoY increase.

Primax’s October revenue was hurt by weak overall PC demand and partially affected by less working days during China’s October Golden Week holiday. Despite the shortfall, in the visual technology sector, strong growth momentum continued for auto and B2B cameras. The business equipment sector saw a demand rebound for MFPs and printers, while new businesses also contributed to the segment’s top-line growth. Despite professional audio’s continued YoY growth and strong momentum, weaker demand for consumer audio products lead a flat YoY audio revenue growth in October. While October sales did see a YoY decline, Primax’s profitability for the month is expected to grow at higher YoY rate than 9M22’s thanks to better customer and product mix and a depreciating NT dollar.

Based on the Primax’s current business outlook, 4Q22 revenue is expected to be flat YoY and decline QoQ. However, with new businesses gradually reaching economies of scale thereby lifting overall operating profit and a better product mix, 4Q22 profit should see a YoY growth. In 4Q22, revenue contributions from smart IoT devices is expected to grow YoY, especially for surveillance and smart home related products. Despite uncertainties facing 4Q22, Primax’s continued growth in promising new sectors and new businesses (auto / industrial AIoT) should help offset some of the weakness from the PC / gaming and audio sector. Profit-wise, Primax’s 2022 net profit is expected to outpace its top-line growth rate, thanks largely to operating leverage from scale and increasing contributions from new businesses.

Primax’s 9M22 consolidated revenue reached NT$60.52 billion, on pre-tax profit of NT$2.84 billion and net income of NT$2.24 billion, which translates to an earnings per share (EPS) of NT$4.77, a 19% YoY growth. In 3Q22, information products accounted for 42% of Primax’s total revenue, followed by smart lifestyle products (33%) and Auto / Industrial AIoT related products (25%).