Due to weak smartphones demand, TPK-KY’s 1Q19 EPS hit a 3-quarters low

TPK-KY (3673-TW), a touch module company, held an investors conference today on May 3rd. Due to weak global demand for smartphones, the company’s 1Q19 net profit was NTD24mn (-87.5% QoQ, -64.71% YoY) with EPS of NTD0.06, hitting a 3-quarters low. In 2Q19, TPK-KY estimates that its 2Q19 revenue may continue to decrease by 15%.

TPK"s 1Q19 revenue was NTD31.16bn (-26.93% QoQ, +49.42% YoY). Its 1Q19 GM was 3.89% (+0.2% QoQ, -2.01% YoY). Its operating profit margin was 0.38% (-0.26% QoQ, -0.69% YoY). Its1Q19 net profit was NTD24mn (-87.5% QoQ, -64.71% YoY) with EPS of NTD0.06.

In 2Q19, TPK-KY’s General Manager and CEO Leo Hsieh pointed out that since main clients may enter into a product transition phase, TPK-KY’s 2Q19 revenue is estimated to reduce by 15%.

Nevertheless, the company holds a positive outlook toward 2H19 because the clients may launch new products, and TPK-KY may also step into foldable and bendable touch panel field. Bendable touch panel is expected to have samples at the end of this year or at the beginning of next year. And, TPK-KY may achieve initial progress for foldable touch panel next year.