Primax Electronics Ltd. (4915 TT / 4915.TW) announced today its consolidated November revenue of NT$6.62 billion, which is a 2.9% year-on-year (YoY) decline and a 5.8% month-over-month (MoM) gain. For the first 11 months (11M22), Primax’s accumulated consolidated revenue reached NT$73.39 billion, a 13.0% YoY increase.

Primax’s November revenue slight YoY decline was affected by weak overall PC/gaming and consumer demand, coupled with slower than expected inventory digestion from brand customers. 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. Professional audio sales continues to increase the overall contribution which could also offset consumer audio weakness. Despite overall YoY revenue decline in November, Primax’s profitability for the month is expected to grow on YoY basis thanks to better customer and product mix which helped gross margin improvement.

Based on the Primax’s current business outlook, 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 / indiustrial AIoT) should help offset some of the weakness from the PC / gaming and consumer 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%).