Primax Electronics Ltd. (4915 TT / 4915.TW) announced today its consolidated December revenue of NT$5.85 billion, which is a 12.5% year-on-year (YoY) decline and a 11.6% month-over-month (MoM) drop. For 2022 as a whole, Primax’s accumulated consolidated revenue reached NT$79.24 billion, a 10.6% YoY increase.

Primax’s December revenue 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 growth continues to outstrip consumer audio, as weakness for consumer audio products remain. Despite an overall YoY revenue decline in 4Q22, Primax’s profitability and gross margin is expected to grow on QoQ and YoY basis thanks to better customer and product mix.

Primax continues to focus on new businesses to improve profitability in 2023 and beyond. In the auto / indiustrial AIoT segment, growth in 2023 will likely come from surveillance and security related products, auto electronics (ADAS / AVAS), and B2B cameras which includes camera systems in unmanned stores, drones, and other new applications. Profit-wise, Primax’s 2023 net profit is expected to outpace its top-line growth rate, thanks largely to better product mix 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%).