Third-Quarter Revenue and Profit Climb Together
台達電 announced its third-quarter results on the 29th, with quarterly revenue of 1,971億元, up 31% YoY and 8% QoQ, slightly below expectations, mainly due to supply-chain shortages and data-center construction delays, which affected shipments of some products and pushed up inventories. Quarterly gross profit was 672億元, up 28% YoY, with gross margin at 34.1%, down 1.5 percentage points QoQ; after-tax net profit was 234.95億元, up 26% YoY and down 7% QoQ, with EPS of 9.04元. The company said it booked about 39億元 in inventory write-down losses in the third quarter, related to mass production and delayed customer pull-in schedules, with the related inventory expected to be digested gradually in the first quarter of next year.
First-Three-Quarters EPS Reaches 26.64元
For the first three quarters, 台達電 posted revenue of 5,397億元, up 37% YoY; after-tax net profit of 691.86億元, up 62% YoY, with EPS of 26.64元; operating profit grew 59% YoY, with operating margin at 17%. Revenue scale growth drove the expense ratio down, with the operating expense ratio falling to 18.5% from 19.5% a year earlier. The company is discussing reflecting higher material costs with customers, with some price adjustments possibly implemented in the fourth quarter or the first quarter of next year, and will still review intangible assets at year-end.
AI Revenue Accounts for Nearly Half
AI data centers remain the main growth driver. Chairman and CEO Cheng Ping (鄭平) said this year AI-related businesses covering power, thermal, computing and 資通訊 have together reached nearly half of company revenue, of which power solutions account for about 25%. Liquid-cooling systems posted third-quarter revenue of about 250億元, about 13% of total revenue, with the full-year share also estimated at about 13%. By division, power and components revenue was 1,059.3億元, up 40% YoY; infrastructure was 658.8億元, up 25% YoY; automation grew 19% YoY, turning from loss to profit on improved industrial and building automation; transportation remained in loss but narrowed from the prior quarter.
Fourth-Quarter Revenue Set to Grow
Looking to the fourth quarter, Cheng Ping said revenue will definitely be higher than the third quarter, confirming growth; gross margin cannot be guaranteed, but is expected to be no worse than the third quarter. AI and liquid cooling are still expected to grow next year, while power supply, labor and materials are constraints. Vice President Liu Liang-fu (劉亮甫) noted that expansion of semiconductors and some passive components takes time, and shortages of skilled workers may lengthen construction timelines, so growth may not be smooth every quarter. High-voltage DC plus/minus 400V has partially shipped in the third quarter, with 800V still in progress. The board has approved a large production base in Penang, Malaysia, targeting Thailand-plant scale within five years; solid-oxide fuel cells are expected to enter mass production next year, with initial capacity of about 100-plus MW, first for trial and validation.